Nordic Investment Bank (NIB) will issue a loan of 22.8 million euros to the state-owned railroad company Latvijas Dzelzcels for modernization of the company’s diesel locomotives, reports LETA. The twelve-year loan will be used for modernization of 2M62UM locomotives. The replacement of engines, electric power systems and other parts on fourteen locomotives is expected to prolong their lifetime by thirty years. The improved locomotives will comply with the Euro III A standard.
“The modernization of diesel locomotives that started in 2015 is one of the most important projects for the Latvijas Dzelzcels 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,” said Latvijas DzelzcelsVice-President Aivars Straksas.
“Railway is the most important transport mode for freight in Latvia which is one of the principal corridors for transit between the European Union and Russia. The technological upgrade financed by this loan will let the company increase the productivity of its services and improve its environmental performance,” said NIB President Henrik Normann.
