Nordic Investment Bank (NIB) has agreed to grant a €53m loan to Lithuanian rail company AB Lietuvos gelezinkeliai for the construction of new tracks and rail corridors upgrades in the country.
The new 18-year loan agreement will facilitate construction of a 115km-long European-gauge railroad track, which is parallel to the existing wider-gauge line from Kaunas to the Lithuanian and Polish border.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The track is being built as part of the future Rail Baltica route and is expected to pave way for a direct link with the railroad network of Poland, as well as allow passenger and freight transportation to other EU countries.
The funding will also cover modernisation of the Trans-European east-west corridors in Lithuania.
AB Lietuvo previously received a €114m loan in June 2013 for the same project as part of the future Rail Baltica route.
As a state-owned company, Lithuanian Railways administers the public railway infrastructure and provides freight and passenger transportation services.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe main commodities transported on the country’s 1,767km-long railway network are mineral fertilisers, as well as oil and its related products.
Image: Lithuania’s total railway network measures 1,767km. Photo: courtesy of AB Lietuvos gelezinkeliai.
