"It's up to the sector to provide modal shift incentives," says LTG Cargo CEO 13/02/24

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Source: https://www.railfreight.com/policy/2024/02/13/its-up-to-the-sector-to-provide-modal-shift-incentives-says-ltg-cargo-ceo/

Author: Nikos Papatolios



"It's up to the sector to provide modal shift incentives," says LTG Cargo CEO


“We don’t have time to wait – we need to act now”. This is the message of Egle Sime, CEO of the Lithuanian operator LTG Cargo. In her view, it’s not only the EU that needs to take legislative steps and enable the modal shift to rail. The rail freight sector should also take initiatives to make it more attractive to customers who are willing to make their supply chains greener.


Sime’s opinion on EU legislation proposed in the context of the Greening Freight Transport Package (GFTP) is that its outcome is still uncertain. Yet, it is a positive step forward despite the criticism it has received from the industry. According to Sime, the most important question is not what type of transport legislation the EU will adopt but whether the rail freight sector is ready to adapt to it.

Eglė Šimė, CEO LTG Cargo. Image: © Lithuanian Railways.

We cannot just stand still

LTG Cargo’s CEO points out that the share of sustainable transport modes (rail, inland waterways) in long-distance transport has decreased over the past three years. This is a challenge, she says, yet a challenge that is already known to the sector, together with several other issues.

“The industry is aware of these challenges and has analysed them exhaustively. Brussels has also pledged to find solutions,” she underlines. However, she also stresses that the rail freight sector should fulfil its part by finding and providing innovative solutions to improve its competitiveness and attractiveness to customers, not just standing still and waiting.

Using legislation as a basis

In this sense, legislation, no matter its faults and their expected amendments, should be used as a basis for the rail freight sector’s growth. For that to happen, the industry must listen to the market. A good example that Sime uses is that increasingly more businesses Europe-wide are feeling increased pressure from their customers in terms of ensuring that the products they distribute are sustainable, but are also transported in a sustainable manner.

This is an opportunity that the rail freight sector should grasp. “With businesses looking for new, innovative and more sustainable ways of transportation, and at the same time, greater integration of the entire transport system,” the rail transport sector has a great case to offer, says Sime.

“Therefore, the entire transport sector needs to continue its activities in the intended direction and promote changes. As a business sector, our responsibility to consumers is to ensure more sustainable journeys for their goods, and to enable logistics partners and customers to choose a green course in their operations,” concludes Sime.


Author: Nikos Papatolios