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Tomorrow's Logistics Today March 2017 TOMORROW’S LOGISTICS TODAY ELECTRONIC MAGAZINE 1 2 TABLE OF CONTENTS Managers of JSC Lithuanian Railways………………………………………….……………………….............4 The key to the company’s success: to be one step ahead.……………………………….………………...…6 Ordering services with a single phone call..…………………………………….....................................11 Negotiations on transit from China being completed......................................................................12 Belarus: not all opportunities are availed of.................................................................................13 Aiming at closer relations with LINEKA........................................................................................14 Milano Express pricing detailed.....................................................................................................15 DB Cargo and Eurosib trains expected............................................................................................16 Key events of 2016 and 2017........................................................................................................17 Freight transportation geography and intermodal routes...............................................................18 Mobile loading/unloading teams...................................................................................................20 Depot services..............................................................................................................................21 Intermodal terminals....................................................................................................................22 Services and opportunities of LG Ekspedicija...............................................................................24 Fairs........................................................................................................................................25 3 MANAGERS OF JSC LITHUANIAN RAILWAYS Mantas Bartuška Director General at JSC Lithuanian Railways ‘Lithuanian Railways must be a company we can justifiably be proud of; it must be an example of transparency and good practice.’ Gerimantas Bakanas Deputy Director General at JSC Lithuanian Railways ‘A competent team, transparent processes and ongoing improvement are the key to the success of any company.’ Egidijus Lazauskas Deputy Director General at JSC Lithuanian Railways, Director of the Freight Transportation Directorate ‘The shrinking global trade, the growing protectionism and the new political nuances do affect our operations and we will certainly encounter challenges. I am sure that we can successfully deal with them.’ 4 Andrius Montrimas Deputy Director General at JSC Lithuanian Railways, Director of the Railway Infrastructure Directorate ‘We have a unique and well developed railway infrastructure, which is something that the neighbouring countries cannot boast, and we must avail of it.’ Linas Baužys Deputy Director General at JSC Lithuanian Alenas Gumuliauskas Railways, Director of the Passenger CFO at JSC Lithuanian Railways Transportation Directorate ‘We will focus on the quality of our ‘In 2016, we were the only Baltic railway company to have retained services, so that an increasing number performance indicators unchanged, while the results of the other countries of people, in particular families, choose dropped. I am convinced that we will continue to remain the most attractive trains as an attractive way of travelling.’ carrier in the region.’. Mantas Dubauskas Communications Director at JSC Lithuanian Railways ‘Lithuanian Railways must become an example of transparency and openness. I am sure that we can join our efforts and achieve this goal.’ << GO TO TABLE OF CONTENTS 5 THE KEY TO THE COMPANY’S SUCCESS: TO BE ONE STEP AHEAD The year 2017 has started with major changes for Lithuanian Railways: nearly all top managers of the company have changed. Does this also mean that changes in the operations of one of Lithuania’s largest companies are inevitable? Egidijus Lazauskas, a new Deputy Director General at JSC Lithuanian Railways and the Director of the Freight Transportation Directorate of the company speaks about the challenges awaiting Lithuanian Railways. Perhaps the most important question that the company’s from the largest Belarusian factories are concerned. Russia is partners and customers are asking after the changes in already doing everything to transport its cargos through its own the management is what other changes are ahead. ports located in the vicinity of St Petersburg and in this manner We are definitely not planning any revolutions. Lithuanian outskirt the Kaliningrad port and avoid transit through the Railways is one of Lithuania’s largest companies and is an Lithuanian territory. We can see a consistent implementation enterprise with established processes, which means that of this strategy. For instance, the load of Ust-Luga port in 2010 any changes will be appropriately evaluated and weighted was 11.7 million tonnes, while the load in 2016, according to and appropriate preparatory work will be performed, so no preliminary data, is over 90 million tonnes. unexpected novelties are going to occur. We expect to achieve good results this year. We transported We will certainly do everything to make the company even 47.6 million tonnes of freight in 2016 and would like to more advanced, to make our operations more transparent and increase this figure this year by at least 2–3%. Our goals are make our services even more attractive and convenient. ambitious and we must therefore be at least one step ahead of our competitors. In your opinion, what major challenges will Lithuanian Railways encounter in 2017? Do we, if compared to the neighbouring countries, have any competitive advantages that will enable us to retain The geopolitical situation is fairly difficult: the shrinking global our positions? trade, the growing protectionism, the new political nuances after the US elections and the forthcoming European elections The key to success of any company is to always be at least will affect our operations and we will certainly encounter one step ahead of competitors. But that one step has a number challenges. But I am sure that we can successfully deal with of constituent parts. The main means to enable a company them. to be a successful competitor include a modern approach to the freight transportation business, a constant focus on The year 2016 was also rich in changes, but Lithuanian Railways customers, the high quality of services, investments in the has managed to retain stable freight transportation volumes, railcar and locomotive fleet, implementation of the latest IT, while the results of our Latvian and Estonian colleagues have and a transparent management. decreased considerably. We are a company using world-class, integrated logistics We are expecting an even fiercer competition this year, which solutions. A strategy oriented towards long-term results is one means that retaining the same results won’t be easy. Railway of the strengths of Lithuanian Railways. companies of the neighbouring countries are likely to seek to restore their freight transportation volumes at the expense We want to and will ensure a long-term cooperation with our of Lithuanian Railways, in particular as far as transportation customers. 6 Lithuania is known as a transit country with old transport and logistics traditions. We are delighted with our close cooperation Freight transportation results with Klaipėda seaport, which is the most northern ice-free 2015–2016, million tonnes port on the Baltic Sea. Klaipėda seaport is Lithuania’s most 48 m. t 47,7 m. t important and largest transport hub, where sea, land and rail ways from the east and west intersect. Expertise, reliability, safety and high quality services are 2015 among the key advantages of Lithuanian Railways. We are 2016 experienced in transporting both large and small freights. We plan to continue to expand the geography of our transportations. We will also consider the future trends in the field of logistics and expand our intermodal and multimodal transportations Freight transportation results as they enable us to offer customers safe, regular, more January and February 2016 and 2017, thousand tonnes environmentally-friendly and quick transportations. 7863,6 7614,1 We have new, modern intermodal terminals in Vilnius and Kaunas, which are intended for integrating different types +3,3 % of transport. These terminals enable us to increase freight mobility, ensure an efficient use of transport, improve the 2017 quality of freight transportation and customs services, cut 2016 freight transportation costs, and cooperate with companies from different industries. We should not forget about the unique railway station in Šeštokai, where rails of two standards – 1,435 mm and 1,520 Changes in the performance of railways of the Baltic States mm – connect, which makes this town a key transit point January and February 2016 and 2017, thousand tonnes between the Baltic States and western EU countries. We should LITHUANIAN LATVIAN ESTONIAN also mention that the new procedures and electronic measures RAILWAYS RAILWAYS RAILWAYS implemented have speeded up our work. We have achieved a +3,3 % +5,9 % 9264,1 record time in which freights cross the EU border – the entire 8749,1 -14,3 % 7863,5 train at Kena border post is checked and released in 30 minutes. 7614,1 What pricing strategy will be used as the company 2688,8 2303,1 continues cooperation with Belarus – one of our key 2016 partners? 2017
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