Lithuanian Government approved the reform strategy of railway sector initiated by the Ministry of Transport, under which Lithuanian Railways will be reorganized by separating freight and passenger transport activities as well as infrastructure management. The three separate companies will be controlled by Lithuanian Railways, which will remain 100 percent owned by the State. Starting September 2019, three currently directorates of Lithuanian Railways – Freight Transport Directorate, Passenger Transport Directorate and Infrastructure Directorate, are planned to be transformed into three separate companies. They will be 100 percent controlled by the holding company Lithuanian Railways.
The legal acts legitimizing the reform of Lithuanian Railways shall be approved by the Lithuanian Parliament.
The Minister of Transport explained that the reform is not drastically radical and will be carried out taking into account the protection of facilities of strategic importance to national security.
The reform model is based on the “successful example of the German railway reform,” the Ministry of Transport says.
“The new performance mode of Lithuanian Railways was chosen in accordance with the most advanced international practice of management of groups of companies. The strategic Lithuanian company will definitely remain under control of the State. However, it will become more transparent, financially stable and easy to control. It will not depend on the political trends and will secure better protection of rights and interests of railway carriers. It is probable that the gain of the State will be bigger, too”, Rokas Masiulis, the Minister of Transport said.
Share on:
