NIB, EU invest in boosting railway transit in Lithuania

12.06.2012, 17:08

The investment programme financed from EU structural funds and the NIB loan includes the renewal of parts of Trans-European rail corridors passing through Lithuania and linking Belarus and Ukraine to the port of Klaipeda on the Baltic Sea.

In particular, the funds will be allocated for a number of stretches and bypasses in and close to the country's three main rail hubs-Vilnius, Kaunas and Klaipeda-as well as the modernisation of safety equipment and other subprojects.

"Cargo transit is one of the key sectors in Lithuania's economy. The improved cargo capacity, higher speed and volumes of transit will contribute to strengthening the competitiveness of the country and help move more cargo from roads to rails," says Henrik Normann, NIB President and CEO.

AB Lietuvos gelezinkeliai (Lithuanian Railways) is a state-owned railway company that operates passenger transportation and cargo freight. The main commodities transported on rail through Lithuania are oil and its products as well as mineral fertilisers.

The Nordic Investment Bank (NIB) is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor's and Moody's.