Latvia: LDz profit has to be channelled into company’s development

Latvia’s current economic development indicates that now is the right time to allow state-owned railway company Latvijas Dzelzcels (LDz) to invest their profits in 2011 into its development,  Transport Minister Aivis Ronis declared.
“The existing railway capacity is close to its limit and it is important to ensure safety in passenger and cargo transportation, therefore the company is in need of considerable financial resources to maintain and develop its infrastructure,” emphasized the minister.
At the moment, the country does not co-fund railway infrastructure maintenance and without adequate investments in development and infrastructure, Latvia’s railways will gradually lose its competitiveness, explained the minister.
LDz will urge the government not to withdraw its dividends, since these funds are necessary for the company’s development,  LDz President Ugis Magonis announced during a press conference earlier this week.
In 2011, LDz had a profit of LVL  6.16 Million (EUR 8.9 Million), with foreign freight transport having the greatest share.
Source: www.baltic-course.com