Latvia signs a 12-year loan agreement for the modernisation of locomotives

Posted: 31 August 2017 | | No comments yet

The Nordic Investment Bank (NIB) and the Latvian state-owned railway infrastructure manager, VAS Latvijas Dzelzceļš, have signed a new 12-year loan agreement, totalling €22.8 million, for the modernisation of locomotives.

Latvia Railways loan agreement

The Latvijas Dzelzceļš (Latvian Railways) Group is a fully state-owned company which manages the railway infrastructure and operates cargo freight as well as international passenger railway traffic to and from Latvia. The loan is for the replacement of engines, electric power systems and practically all parts above the wheels on 14 locomotives, which is expected to prolong their lifetime by 30 years. The improved locomotives will comply with the Euro III A standard.

The modernisation of diesel locomotives… allows us to improve the rolling stock by increasing its capacity and economic performance”

“The modernisation of diesel locomotives that started in 2015 is one of the most important projects for the Latvijas Dzelzceļš Group of companies,” said Aivars Strakšas, Vice-President of Latvijas Dzelzceļš. “It allows us to improve the rolling stock by increasing its capacity and economic performance, as well as decrease its negative impact on the environment. We are honoured that internationally respected financial institutions put their trust in us and support the implementation of such projects.”

The modernisation is expected to improve the technical capacity of the upgraded locomotives by 50%, and reduce fuel consumption by 17%, corresponding to a greenhouse gas emission reduction by almost 15,000 tonnes of CO2 annually.

These indicators are expected to improve the economic performance of locomotives which will allow the railway operators and their clients to reduce their costs.

Railway is the most important transport mode for freight in Latvia…”

“Railway is the most important transport mode for freight in Latvia which is one of the principal corridors for transit between the EU and Russia,” added Henrik Normann, NIB President and CEO. “The technological upgrade financed by this loan will let the company increase the productivity of its services and improve its environmental performance.”

The modernisation of the locomotives 2M62UM (which is to be carried out by Latvijas Dzelzceļš’s subsidiary company, LDz Ritošā sastāva serviss) is expected to continue until 2018.

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