The new structure is expected to give a boost to the profitability and operating efficiency of the transport companies involved, the press service of the government's office said in a press release.
"This reorganization will be beneficial to the state in economic terms due to facilitation of efforts to improve operating efficiency of the companies falling within the remit of the ministry. In addition, it will help achieve better return on invested capital. The creation of a group of transport companies, which will be fully controlled by a state-owned public company, will help reduce general and administrative costs and remove function overlaps," the press release quoted Transport Minister Rimantas Sinkevicius as saying.
In line with the proposal from the Transport Ministry, which was approved by the Cabinet on Wednesday, the new company would be founded by the ministry and money for the authorized share capital would be earmarked by the government.
Funds required for the government's contribution of at least 40,000 euros will be set aside in the 2016 central government budget.
The companies that will be grouped together by the new holding company will include public companies Problematika, Lietuvos Gelezinkeliai (Lithuanian Railways), Smiltynes Perkela, Lietuvos Radijo ir Televizijos Centras (Lithuanian Radio and Television Center), Detonas and Lietuvos Pastas (Lithuanian Post).
In future, once the companies controlled by the ministry are reorganized into public companies, they will also be added to the new group.
