Lithuanian railway to face losses if stops transporting Belaruskali cargoes
Lietuvos Gelezinkeliai (Lithuanian Railways) state run company will need 49m Euros of subsidies per year if it stops transporting Belaruskali fertilisers – as stated by the Mantas Bartuska, CEO of Lietuvos Gelezinkeliai, RuBaltic reports
“According to the updated calculations, if we stop transporting Belaruskali fertilisers from January 1st, we may need about 49m Euros of subsidies since we are already performing many actions: optimising processes and employees, and ceasing certain investments. It’s a fact that the impact is very great,” Mr. Bartuska said during a recent meeting of the budget commission of Lithuania’s Sejm.
Preliminary data indicates that Lietuvos Gelezinkeliai will lose about 70m Euros of revenue every year. “In general, we are losing 60-70m Euros of revenue but, at the same time, we have other negative trends: Russian metals are leaving the port of Klaipeda, there are fewer other Russian products now, while some Belarusian products, petroleum products, Grodno Azot products have already left,” its CEO added.
According to Mr. Bartuska, Belaruskali's advance payment for transportation of products in December was made in November, and this money might be not enough for the whole of January.
“In any case, the entire logistics chain may face certain challenges, since it embraces not only us but also terminals and ship charterers,” Mr. Bartuska said.