On 3 May 2018, government supported the decision to determine the part of profit of VAS (SJSC) “Latvijas dzelzceļš” (LDz) to be distributed in dividends for period 2018–2020 in the amount of 0%, retaining the profit within the company and transferring it to the development and restoration of the public-use railway infrastructure, including, to recognise reserve that can be used to retain sustainability of the State Joint Stock Company “Latvijas dzelzceļš”, as well as to implement the planned public-use railway infrastructure projects. The above condition shall be considered when developing the draft law “On the State Budget for 2019” and draft laws for the next three years.
LDz has increased its operational efficiency in recent years and developed new services, as well as expanded the transportation territory by entering new markets, creating new partnerships and developing the existing ones. The results are represented in the company’s financial results that are stable in the current market situation, emphasised the Minister of Transport, Uldis Augulis, during the government session.
According to the state company management requirements, LDz has developed a medium term operational strategy for five years the implementation of which provides that the company’s profit during this period shall be retained within the company and transferred for development and restoration of public-use railway infrastructure, including to recognise reserve that can be used to retain sustainability and to implement the planned public-use railway infrastructure projects within the framework of the medium term operational strategy for 2017–2022 or to retain the financial balance stipulated in Section 9 of the Railway Law.
The necessity to ensure financial balance of the manager of infrastructure has been stipulated in the European Union Directive on creation of a joint railway space. To ensure retaining the level of infrastructure on high level continuously and to retain the stability of payments to carriers, the company’s financial stability is of importance, regardless of the changes in the amount of transportation. Therefore, retaining the profit within the company allows to ensure stable and predictable operations.
“LDz currently experiences a very significant turn of development, by balancing the operations in complex conditions of the industry we have reorganised the company’s internal structure, making its operations more efficient. At the same time, LDz works actively on development of new transport corridors and attraction of new clients to strengthen the international transport corridor of Latvia and to ensure competition several significant investment projects are initiated. Therefore, we are delighted that government understands the work we have contributed and ensures practical support for further work,” emphasised the President of LDz, Edvīns Bērziņš.
Along with regular infrastructure maintenance work that requires regular investments, LDz has started working on implementation of several EU co-financed projects that will allow more efficient organisation of transportation services and competition, including electrification of the network of LDz, modernisation of railway transport hubs in Riga and Daugavpils, as well as implementation of joint train transport planning and management information system.
Public Relations Specialist
Unit of Corporate Communication
VAS “Latvijas dzelzceļš”
Tel.: +371 67234567