NIB Nordic Investment Bank

Article

24 Aug 2017

NIB finances upgrade of locomotives in Latvia

Locomotive upgrade
Photo: VAS Latvijas Dzelzceļš

NIB and the Latvian state-owned railway infrastructure manager VAS Latvijas Dzelzceļš have signed a new 12-year loan agreement, totalling EUR 22.8 million for the modernisation of locomotives.

The replacement of engines, electric power systems and practically all parts above the wheels on fourteen locomotives is expected to prolong their lifetime by thirty years. The improved locomotives will comply with the Euro III A standard.

“Railway is the most important transport mode for freight in Latvia which is one of the principal corridors for transit between the EU and Russia. The technological upgrade financed by this loan will let the company increase the productivity of its services and improve its environmental performance”, says Henrik Normann, NIB President & CEO.

“The modernisation of diesel locomotives that started in 2015 is one of the most important projects for the Latvijas Dzelzceļš Group of companies. It allows us to improve the rolling stock by increasing its capacity and economic performance, as well as decrease its negative impact on the environment. We are honoured that internationally respected financial institutions put their trust in us and support the implementation of such projects”, emphasises Aivars Strakšas, Vice-President of Latvijas Dzelzceļš.

The modernisation of the locomotives 2M62UM carried out by Latvijas Dzelzceļš’s subsidiary company, LDz Ritošā sastāva serviss, is expected to continue until 2018 with a total of fourteen locomotives to be modernised. The modernisation is expected to improve the technical capacity of the upgraded locomotives by 50%, and reduce fuel consumption by 17%. This corresponds to a greenhouse gas emission reduction by almost 15,000 tonnes of CO2 annually. These indicators are expected to improve the economic performance of locomotives which will allow the railway operators and their clients to reduce their costs.

The Latvijas Dzelzceļš (Latvian Railways) Group is a fully state-owned company. The group manages the railway infrastructure and operates cargo freight as well as international passenger railway traffic to and from Latvia.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact

NIB

Mr Vilius Girkontas, Senior Manager Origination, at +358 10 618 0240,

Mr Dimitrijs Alehins, Senior Communications Specialist, at +358 10 618 0296

Latvijas Dzelzceļš

Mr Maris Ozols, VAS Latvijas dzelzceļš Press Secretary/Media Relations Manager, at +371 2789 5497,

 
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