Latvian Pasažieru vilciens and Czech Škoda Vagonka agree on train supply contract extension

Latvian Pasažieru vilciens (PV) and Czech Škoda Vagonka have signed a mutual agreement on the extension of the contract for the supply of new electric trains, as confirmed by PV representatives.
This deal states that the manufacturer is to supply the remaining electric trains by the end of summer 2024.
PV currently has 17 out of the 32 trains ordered from Škoda Vagonka. This means the Czech company still has to supply 15 more trains by the end of summer.
Representatives of both companies explain the contract was signed based on the analysis of independent experts about the impact of Russia’s attack on Ukraine on the implementation of the contract.
PV acting board chairman Raitis Nešpors says that after the start of the Russian-Ukrainian war, it became clear to both the client and manufacturer that the war would have an unambiguous impact on the contract. Initially, however, it was difficult to assess the extent of this influence.
In order to asses the influence caused by the war, Škoda Vagonka hired Deloitte Advisory to prepare a report. PV hired PricewaterhouseCoopers Legal to do the same.
Legal consultants concluded the conditions mentioned in the report are considered objective and justified reasons for the extension of the contract, because neither side could have predicted them.

Škoda Vagonka board chairman Martin Bednar adds that Russia’s aggression caused delays for the timely supply of new trains both in terms of manufacturing and logistics.

“It is because of this influence Škoda Vagonka needs to perform train assembly twice – first at its manufacturing plant in Ostrava, where trains have to be partially disassembled after independent certification, loaded onto trucks and then transported to Latvia, and the second time at a train yard in Riga,” Bednar explains.
PV reminds that the accuracy of passenger transports improved significantly in February 2024 – 98.5% of trains arrive according to the timetable. The remaining 15 trains will be deployed gradually – first they have to undergo dynamic tests without passengers on board.
LETA previously reported that PV started using new electric trains supplied by Škoda Vagonka to carry passengers in December 2023. Before their deployment, trains were tested for compatibility with Latvian railway infrastructure. Despite this, however, new trains still experienced various extensive technical problems.
Also read: Pasažieru vilciens chairman promises all trains to finally become fully operational by the end of 2024
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