Latvia, Markets and Companies, Railways, Transport

By end of August, the board is planning to draw up a strategy for the replacement of the company's rolling stock until 2016, the company informs in a statement to the media.

As reported, Swiss company "Stadler Bussnang AG" won the "Pasazieru vilciens" procurement tender for leasing new electric trains. South Korean company "Hyundai Rotem Company" was disqualified from the tender because its bid failed to meet requirements. "Hyundai Rotem Company" said it would dispute the decision. The aim of the tender was to ensure new and modern trains for Latvian residents, in order to guarantee safe and economical transportation for passengers.

After the announcement of tender results, CEO of "Pasazieru vilciens" Artis Birkmanis declared that additional subsidies would not be required from the state for the train leasing from "Stadler", and that the leasing will be financed using "Pasazieru vilciens" money.

A couple of days later, on July 7, Transport Minister Anrijs Matiss (Unity) announced that a new "Pasazieru vilciens" board would be appointed. Matiss previously explained that the former board was incapable of managing its duties. It was also unclear whether the company would be capable of funding the train leasing project without requesting additional funds from the state budget, furthermore, "Stadler's" offer was considerably more expensive than it was in Estonia. A great deal of lease funding calculations are based on "assumptions and interpretation, and there is no document to verify that the required funding will be available," Matiss pointed out.

On July 8, a new board was appointed for "Pasazieru vilciens" with Andris Lubans as the board chairman and Maris Bremze and Mikus Perse as board members.

In two weeks since taking office, the new board of "Pasazieru vilciens" has reviewed and approved the company's report for the 2013 financial year. The board has also prepared amendments to the company's 2014 budget, which are aimed at optimizing the company's resources and reducing losses by at least EUR 5 million.

The board of "Pasazieru vilciens" has also reached agreement with the state railroad company Latvijas dzelzcels on payments for main infrastructure services.