Lithuania Advances Rail Electrification with EUR 200 Million Investment in Electric and Battery Trains

Lithuania Advances Rail Electrification with EUR 200 Million Investment in Electric and Battery Trains

(IN BRIEF) A financing agreement between the Nordic Investment Bank (NIB), the European Investment Bank (EIB), and LTG Link signals a significant step forward for Lithuania’s rail sector. The agreement, totaling EUR 200 million, will facilitate the purchase of nine electric and six battery-powered trains, aiming to replace a substantial portion of the country’s passenger train fleet. These modern trains not only promise enhanced comfort and reduced journey times but also contribute to environmental sustainability by cutting CO2 emissions by an estimated 6,500 tonnes annually and reducing nitrogen oxide emissions. Scheduled to begin operations in mid-2026, these trains will operate on popular routes like Vilnius-Klaipėda and Kaunas-Šiauliai, marking a crucial milestone in Lithuania’s transition towards sustainable and efficient rail transportation.

(PRESS RELEASE) HELSINKI, 20-Apr-2024 — /EuropaWire/ — The Nordic Investment Bank (NIB), the European Investment Bank (EIB) and LTG Link have signed a financing agreement for the purchase of electric and battery-powered trains.

NIB and the EIB will provide loans of EUR 100 million each to finance nine electric and six battery trains, which will replace about one-third of the passenger train fleet.

The new trains will not only be more comfortable than diesel trains, but will also reduce journey times. Low-floor cars will make boarding easier for older people, pregnant women, parents with small children and all passengers with reduced mobility.

The electrification of the train fleet will also be environmentally friendly, with the new trains set to reduce the CO2 emissions of passenger transport by an estimated 6 500 tonnes per year. In addition, the scaled back diesel use will result in an estimated 39 tonnes reduction in nitrogen oxide emissions per year. All electric trains will use electricity generated from renewable energy sources.

“This agreement not only paves the way for significant renewal of the train fleet in Lithuania, but also strengthens our railway integration with Europe. This is particularly important in order to further improve and popularize rail transportation, expand sustainable travel options, and increase the number of passengers. This is a new stage in the Lithuanian railway sector, with the company giving up any ties, train parts or maintenance from eastern neighbors,” said Minister of Transport and Communications Marius Skuodis.

“We are taking another step towards a clean transport future by fulfilling the Group’s commitment to contribute to the development of a sustainable transport system in Lithuania. This requires integrated solutions that include both infrastructure projects and services for passengers and businesses. As the electrification of Lithuania’s main railway artery, Vilnius-Klaipėda, progresses, we are procuring modern electric trains that will create a new travel culture and experience,” added LTG CEO Egidijus Lazauskas.

Testing of the Swiss-built electric trains in Lithuania is scheduled to begin next year, and the company’s customers will start travelling on the first of the new trains in mid-2026. By purchasing these trains, LTG Link will also procure the supply of train parts and technical support services for a very long period of time — until 2037.

The new trains will operate on the popular Vilnius-Klaipėda, Vilnius-Varėna and Kaunas-Šiauliai routes. As part of the electrification of the railways, battery-powered trains will run on non-electrified lines.

“Sustainable transport is a high priority for us,” said EIB Vice-President Thomas Östros. “The transition to an electrified railway fleet will benefit both passengers and the environment. As the EU climate bank, we are committed to meeting the European Union’s climate goals and the partnership with LTG Link and NIB is a good example of this.”

Both the EIB and NIB have provided financing for LTG Group projects in the past, with the EIB funding the previous set of trains slated for replacement. This is the sixth NIB loan to be granted for rail transport development in Lithuania.

“With the ongoing cooperation with LTG Group companies, we are helping to green the transportation sector, which is still one of the main emitters in Lithuania,” said NIB Vice-President and Head of Lending Jeanette Vitasp. “Through this fleet renewal, LTG Link is not only making their operations more environmentally friendly but can also encourage more travellers to choose trains over cars for their journeys.”

The value of the trains, related services and spare parts to be purchased is EUR 226.5 million.

Background information

LTG Link is part of the LTG Group. The company provides sustainable public rail transport services in Lithuania and abroad. LTG Link aims to create a more comfortable travel experience for all its customers and to encourage people to choose more sustainable rail transport, thus contributing to reducing the environmental impact of transport. The number of customers transported by the company has been growing in recent years, reaching around 5 million passengers in 2023, which is around 7% more than in the same period in 2022. 4.7 million of these passengers travelled on domestic routes within Lithuania.

The Nordic Investment Bank (NIB) is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank finances private and public projects in and outside its member countries. NIB has been operating in Lithuania since 1994, providing approximately EUR 1.8 billion in financing to more than 115 projects in the country. Read more about NIB in Lithuania.

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to the EU’s policy objectives. EIB projects strengthen competitiveness, stimulate innovation, contribute to sustainable development, enhance social and territorial cohesion and support a just and rapid transition to climate neutrality. In 2023, the EIB Group’s financing in Lithuania amounted to EUR 654 million.

Media Contacts:

NIB:
Vytautas Brazaitis
vytautas.brazaitis@nib.int
tel.: +358 10 618 0235

EIB:
Kristiina Randmaa
k.randmaa@eib.org
tel.: +352 437 972 894

LTG Link:
Olga Malaškevičienė
olga.malaskeviciene@ltg.lt
tel.: +370 614 64 733

SOURCE: Nordic Investment Bank