Estonia is actively continuing the privatization process of the state railway operator Operail, this is reported by the railway transport news portal Railway Supply.

Estonia Continues Privatization of Operail
Photo: Operail

The government decided to sell the company after determining that its freight transport activities are no longer strategically important to the state.

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The privatization will be carried out through an auction, and following the successful completion of the first stage, the project received approval from the Cabinet of Ministers under the leadership of the Minister of Infrastructure.

The preparation process for privatization has been discussed for several months, and in June 2024, the first stage of the auction was launched. According to the minister, even at this stage, the government faced significant interest from potential buyers.

The minister noted that attracting private investors creates opportunities for further development of Operail, while the state can focus on more priority areas.

The privatization of Operail will proceed in two stages. At the first stage, potential investors have already expressed interest in acquiring the company.

The next stage will allow selected auction participants to review additional company data and submit their final purchase offers. This will enable the government to negotiate with the most promising candidates and select the best buyer.

Earlier, in 2023, Estonia had already sold part of Operail’s business related to wagon leasing and freight transport in Finland.

In February 2024, it was announced that the remaining assets of the company would be sold.

The decision was based on the government’s position that railway freight transport is not a priority for state activity.

This move comes amid significant changes in Estonia’s transport infrastructure.

The most important project remains the creation of the Rail Baltica network, which will connect Estonia with Poland and other European countries.

The Rail Baltica project has received support from the European Union in the form of a 1.2 billion euro grant, highlighting its strategic importance for the region.

Thus, the privatization of Operail will be an important step in the development of Estonia’s transport sector, allowing the state to focus on implementing projects with higher strategic value, such as Rail Baltica, and handing over less critical areas to private investors.

Photo: Operail

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