The article provides an overview of passenger transportation on local and international routes by the Lithuanian railways. It identifies the reasons due to which passenger transportation has become increasingly loss-making. Also, factors that may encourage a greater number of people to travel by train are disclosed. The development of this sector up to 2030 is reviewed, i.e. a forecast for increasing the number of passengers, a perspective for the development of electric, diesel trains, passenger wagon fleet, and the levels of estimated investments are provided. It was established that after implementation of the measures envisaged, losses in the passenger transportation field could be cut by 2–3 times.
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