Latvian Railway announces massive plans for railway electrification

State joint-stock company Latvian Railway (LDz) plans to electrify the country’s entire railway network by 2040, as announced by LDz board chairman Māris Kleinbergs at a press-conference on Thursday, 27 January.
He explained that the company is currently working on this project’s financing plan and mechanism. Project cost estimates are also in the works. Initial estimates suggest the necessary financing amount will be EUR 4 billion to EUR 4.5 billion, said Kleinbergs at the press-conference.
After the press-conference LDz representatives clarified that the aforementioned amount is the total cost of LDz infrastructure modernization projects by 2035 – electrification, train speed increase, passenger platform reconstruction and other projects.
The new electrification project is based on the plan to provide passenger transportation services.
Kleinbergs explained that costs and revenue are being estimated at the moment and financing is being planned. He said estimates should be ready within half a year.
Read also: State Audit: railway electrification project was undermined by Transport Ministry’s and LDz’s decisions
LDz is currently working on an electrified railway reconstruction project to adjust 81 km long railway line in Riga hub from 3.3 kV to 25 kV electric current. This project’s funding reaches EUR 72.2 million from the EU Recovery and Sustainability Mechanism and is planned to be implemented by 2026.
As previously reported, at the end of March 2020, when carried freight volumes rapidly dropped, LDz decided to discontinue the EUR 441 million railway electrification project.
The company reports that with freight volumes continuing to decline and considering the inability of LDz to provide financial balance without input from the state budget, LDz has reviewed its plans and the capabilities of implementing EU financed projects.
LDz is a public use railway infrastructure manager and the leading company of Latvian Railway concern. There are also six subsidiaries: LatRailNet, LDz Cargo, LDz Infrastructure, LDz Rolling Stock Service, LDz Security, as well as LDz Logistics.