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LTG Cargo Ukraine ambitions in the Ukrainian market

Saulius Stasiūnas, CEO of LTG Cargo Ukraine, share his thoughts about the company’s plans on the Ukrainian market.

We would like to congratulate you on the beginning of your operations in Ukraine. In your first press-release you mentioned that “at the first stage the company is going to propose the leasing of the rolling stock, forwarding and other services connected with the transportation of cargos“.

Who are your first clients? What do you mean by “ other services connected with the transportation of cargos“?

LTG provides the whole complex of logistic services: starting from the forwarding of a single coach and ending with the management of intermodal terminals, container trains, establishment of new logistic products (for instance, the transportation of semitrailers) and similar activities. Our clients, or even our partners in Ukraine, as we love to call them, had been found long before the establishment of our subsidiary in Ukraine. We cooperate with the big railway forwarding agents, cargo transportation companies, terminals, etc. We are also in the process of negotiating with the companies which are interested in leasing shunting and even mainline locomotives.

So, apart from the rolling stock, do you also offer locomotives?

Sure. We can offer different shunting and mainline locomotives: ЧМЕ-3, ТЕМ-ТМХ, 2М62 either with standard or CATERPILLAR engines. The service is currently provided in accordance with the «Dry Lease» scheme, but soon we will be ready to offer the full-scale complex of services for manoeuvring.

What are the problems/tasks which your company faces upon the integration to the already established business model in Ukraine?

We have been working on the Ukrainian market for quite a long time and know the market quite well. Therefore, we do not see any severe problems. We have chosen the path of partnership and openly declare it. That is why our business and business relationship are being formed quite correctly.

What problem have you faced upon dealing with the state authorities? What is your general opinion of the business climate in Ukraine? Could you please compare it with the business climate in Poland where you already operate?

Since we only begin working as residents, we have not faced any issues yet. I think we have to thank or legal, financial and taxation consultants. All in all, we see a great perspective for the growth of the Ukrainian economics. This, the railway sector will develop as well. We have recently started our operations in Poland, but being a EU country it definitely differs from Ukraine. Unlike the Ukrainian market of railway transportation, the Poland market has already undergone liberalization. But Ukraine is also gradually moving towards it.

What spheres of Ukrainian economics seem to be most perspective for your business?

It is definitely the agricultural sphere. Ukraine is one of the global leaders of exporting agricultural products. Moreover, we see a big potential of transiting cargos from Turkey and Caucasian countries to the Scandinavian countries. The development of intermodal products which would unite these countries also seems to be quite perspective. With this aim we conducted several testing transportations of semi-trailers in 2020 and tried different technologies of their loading. This year we will start the production of platforms for such transportation and commercial transportation will commence in Lithuania and, hopefully, in Ukraine.

What Ukrainian seaports and terminals are you going to involve?

We will definitely involve the leading ports: Odesa and Chornomorsk, “Pivdenny” port. However, we also have business contacts at Mykolaiv port.

Do you feel any pressure from the competing companies and UZ? Do you feel that the sphere of Ukrainian railway transportation is monopolized?

Actually, we have very good and sincere relationship with our colleagues and partners from UZ. We have been developing the idea of the intermodal “Viking” train for many years as well as discuss new opportunities for the transportation of semi-trailers. As I have said before, we have come to the Ukrainian market in order not to undercut the prices of logistic services or steal the clients. We want to work through partners and commonly create the high-quality product. We also see the gradual movement to the liberalization of the Ukrainian market of railway transportation and this gives us hope.