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Jan 28, 2021
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Latvia sells rails – a railway without Russian cargo is not needed

The company Latvijas dzelzceļš is gradually selling its property – there is nothing to replace Russian cargo with

Company Latvian railway (“Latvian Railways”) announced an auction, where it intends to sell tons of rails that have become unnecessary after the reduction of freight traffic from Russia and Belarus.

The auction will last four months (February – May), during which time Latvian railway will put up for sale 4,300 tons of scrap metal at an initial price of 230 euros per ton, according to the official publication Latvian magazine, which writes: “The object of the auction is a used railway”

Rails of various lengths and their fastenings, parts of rolling stock, railway switches and nodes will be offered as scrap metal.

This is far from the first time that property Latvian railway goes under the hammer: in December, 22 vehicles were sold (tractors, MAZs, ZILs, cars belonging to the company), and even earlier – locomotives and wagons, now the turn has come to rails. The company is getting rid of not only assets, but also employees: at the end of last year, 1,500 employees were laid off, which is a quarter of all employees Latvian railwayhowever, this is only the beginning, layoffs will continue.

The reason for this catastrophic situation is the reduction in the volume of freight traffic from Russia and Belarus, which cannot be reimbursed: Latvia has lost 60% of freight traffic over the past few years and only in the last year – 42%.

According to the head Latvian magazine Marisa Kleinbergs, there is nothing to replace the lost volumes of Russian cargo, because they accounted for 70% of the total cargo turnover. Today they all go through the port of Ust-Luga in the Leningrad Region – Russia has made the most of all its capabilities in the Baltic.

And although the frosty winter contributed to an increase in cargo turnover due to the supply of coal to power plants, this phenomenon is temporary and will definitely not be able to save the company, said Kleinbergs.

And one more reason that the Latvian Railway was on the verge of bankruptcy is the European sanctions against Russia. Previously, Latvia always bought diesel trains in Russia, but today it cannot buy anything in Russia – sanctions are prohibited, and the railway fleet Latvian railway needs updating for a long time.

Riga, quite successfully coping with the destruction of its past, began to sell the present, risking being left without a future.

Own corr. FSK

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