The loss of freight volumes is making a big dent in Latvian Railways’ (LDz) financial health. With a 27,7 million euro pre-state aid loss in 2024, the company’s future depends heavily on support from the Latvian government.
The 27,7 million euro loss is largely compensated by official support. After state budget revenues, the company’s losses amount to 1,6 million euros, a mere fraction of the actual losses. The LDz Group recorded a total loss of 7,8 million euros in 2024. The annual revenue was 233,74 million euros, 11,3 per cent less than in 2023.
The decline in the transported freight volume is the primary cause of the financial downturn at LDz. The company was planning to transport 16,5 million tonnes of freight, but only managed 11,5 million tonnes, 26,2 per cent less.
Passengers in the lead
LDz was profitable without state support as recently as 2018, write Latvian media. However, the war in Ukraine and the subsequent sanctions have not worked favourably for the rail operator. With the decline of freight, passenger transportation has now overtaken it as the leading source of revenue. LDz transported 19,4 million passengers in 2024, a growth of 13 per cent compared to 2023.
– Imports accounted for 62 per cent of the total freight volume.
– The volume of import transportation was 7,11 million tonnes, a 26,2 per cent decrease compared to 2023.
Commodity breakdown as a share of the total freight volume:
– Grain and grain products: 43,1 per cent
– Oil and oil products: 19,2 per cent
– Fertilizers: 5,3 per cent
– Wood and wood products: 3,5 per cent
– Coal: 1,3 per cent
– Other goods: 27,6 per cent