VMG Wood Solutions expands logistics strategy: begins using rail transport for wood chips

VMG Wood Solutions has taken a significant step in strengthening its supply chain by introducing railway transport for wood chip deliveries. The company has already received its first full train consignments marking an important milestone towards more stable, efficient, and sustainable logistics operations.

A single train consist of approximately 30 wagons delivers around 6300 cubic metres (about 1950 tonnes) of wood chips in one shipment. This volume represents 35–40% of the company’s average monthly demand, significantly reducing the reliance on road transport and enabling more efficient planning of raw material flows. The shift supports a more stable production rhythm and reduces exposure to daily logistics fluctuations.

According to Artūras Rutkauskas, Head of the Wood Trading Group at VMG Group, the operational benefits of the transition became evident immediately. Transporting this volume by rail requires approximately 2825 litres of diesel, compared to around 6600 litres for road transport. This results in more than a 50% reduction in fuel consumption!

The impact on sustainability is even greater. Rail transport generates approximately 25 tonnes of CO₂ emissions for this volume, compared to around 120 tonnes when transported by road. This represents an approximately fivefold reduction in emissions.

“This is not just about numbers – it is a meaningful change in our daily operations. Larger incoming shipments allow us to plan production more consistently, reduce supply risks and ensure uninterrupted operations. The more reliable the supply, the more efficiently we can respond to market needs,” says A. Rutkauskas.

The company notes that the decision also supports broader strategic goals. Expanding supply geography provides greater flexibility to adapt to market changes, maintain competitive pricing, and ensure reliable supply continuity. Rail transport is increasingly viewed not as an alternative, but as a core element of the logistics chain, offering stability and reduced sensitivity to fuel price volatility.

This initiative is also aligned with VMG Wood Solutions’ sustainability strategy. The company has already achieved significant CO₂ savings across its operations and the introduction of rail transport further strengthens this progress.

Beyond cost efficiency, the company emphasizes long-term value creation – a more resilient supply chain, reduced risk of disruptions, and a lower environmental footprint. VMG Wood Solutions plans to continue expanding the use of rail transport wherever it represents the most efficient and sustainable logistics solution.