EUR 36 million loan granted to rail freight company LTG Cargo
We have agreed on a EUR 36.46 million loan with the rail freight transport company AB LTG Cargo. The funds are allocated to an investment project that involves acquiring 500 new hopper wagons designed for transporting grain, aimed at meeting the growing demands of the grain transport market.
“The expanded wagon fleet allows the company to increase the volume of grain transported by rail – a more sustainable method of freight transport compared to road transport. Projects like this are an investment in a greener and more advanced future for the entire country. We are delighted to collaborate with a strategically important Lithuanian company and contribute to changes that strengthen the food supply network,” said Giedrius Dzenkauskas, Head of Sales at the Lithuanian branch of OP Corporate Bank.
In Lithuania, depending on the harvest, approximately 6 million tonnes of grain are produced annually, and global demand for grain is on the rise. Until now, only slightly more than 40% of this grain has been transported by rail, even though it is a more environmentally friendly and economically advantageous method of transportation. The majority of grain has been transported by lorries to the Port of Klaipeda.
“Domestically, we planned to increase the volume of grain transported by rail to 60% of the total grain transport volume. The new wagons will allow us to gradually expand the transportation of grain. Upgrading our equipment is important for our clients – companies in the agricultural production sector. By expanding the number of wagons available for freight transport, we can offer even more efficient, convenient, sustainable, and, of course, competitive freight transport solutions,” said Egle Sime, CEO of LTG Cargo.
Nearly half of the new wagons arrived in Lithuania last year, and some are already being used for transporting agricultural goods domestically. The investment project funded by the loan is planned for completion in the first half of this year, when the final wagon will be registered in the European vehicle registry.
We are one of the largest business financiers in Lithuania. Having operated in the country for 12 years, we work with major and leading mid-sized companies. We are part of OP Financial Group, the largest financial group in Finland.
LTG Cargo is part of the LTG Group and manages the largest rolling stock fleet in the Baltic States, consisting of over 6,000 various wagons. The transport company also operates subsidiaries LTG Cargo Polska in Poland and LTG Cargo Ukraine in Ukraine.