Lithuanian govt puts off decision on state railway co reorganization

The Lithuanian government on Wednesday postponed for a week its decision on the proposed reorganization of the state railway company Lietuvos Gelezinkeliai (Lithuanian Railways, LG) after certain critical comments were made.

Deputy Transport Minister Ricardas Degutis says that the reorganization model will not change, but certain legal issues are yet to be finalized.

“The model remains in place. The model is not being questioned. There are some legal issues that we need to look at,” he told reporters.

The Cabinet was briefed on plans to split LG’s passenger and freight transportation and infrastructure management functions into three separate companies managed by a holding company.

The Transport Ministry has drafted the legislative amendments to implement the EU’s 4th railway package aimed at ensuring the impartiality, independence and financial transparency of the infrastructure manager.

Plans call for establishing three new private limited companies in place of LG’s Directorates for Passenger Transportation, Freight Transportation and Infrastructure.

All three new companies will be 100 percent owned by Lietuvos Gelezinkeliai, the holding company that will remain wholly owned by the state.

According to Degutis, the new companies are to be set up by Sept. 1, 2019 and to launch operations in early December of that year.

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