“Lithuanian Railways” to control companies of carriage of goods, passengers and infrastructure


2018 05 16


The Lithuanian Government approved the reformation of management of railway transport sector initiated by the Ministry of Transport and Communications. In order to achieve bigger performance effectiveness and transparency, JSC “Lithuanian Railways” will be reorganized by separating the activities of carriage of goods, carriage of passengers as well as management of public railway infrastructure. The separate companies will be controlled by JSC “Lithuanian Railways”, which will remain 100 percent owned by the State.

“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”, – said Mr. Rokas Masiulis, Minister of Transport and Communications.

The reform model of Lithuanian national railway company is based on a successful example of the German railway reform.

Three present directorates of JSC “Lithuanian Railways” – Freight Transportation Directorate, Passenger Transportation Directorate and Infrastructure Directorate – are planned to be converted into three separate companies after 01 September 2019, and the holding company “Lithuanian Railways” will control 100 percent of shares of each of the companies. All the shares of “Lithuanian Railways” will belong to the State by the right of ownership.

According to the Minister of Transport and Communications Mr. R. Masiulis, this reform is not drastically radical and will be carried out taking into account the protection of facilities of strategic importance to national security.

The legal acts legitimizing the reform of JSC “Lithuanian Railways” shall be approved by the Seimas (Lithuanian Parliament).