Estonian Minister of Transport Vladimir Svet announced that interest in Operail is very high. Several local and international companies are keen on acquiring the state-owned railway company. This was reported by the railway transport news portal Railway Supply.

Estonia Continues Privatization of Operail
Photo: Operail

Estonian Minister of Transport Vladimir Svet announced that interest in Operail is very high. According to him, several local and international companies have shown significant interest in purchasing the state-owned railway company. The best offer came from the owner of Tartu Mill, a company specializing in grain processing.

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The government has already started negotiations with Tiigi Keskus, which made the most favorable offer. The Ministry of Infrastructure emphasized that the sale process is taking place in a competitive environment because several players are interested in the railway transportation market.

Negotiations for Operail Sale: Key Details and Future Prospects

Uuno Lausing, representing Tiigi Keskus and Tartu Mill, stated that he sees the railway business as a promising area for further development. He added that the company plans to expand its freight services not only within Estonia but also beyond its borders.

In an interview with the program “Aktuaalne kaamera,” Lausing highlighted that negotiations for the sale of Operail are ongoing. However, it is too early to talk about concrete results, as the terms of the deal are still being discussed between the parties.

Additionally, representatives of Tartu Mill stated that the acquisition of Operail would create synergies with their existing business. The company owns the largest grain mill in Estonia and additional capacities in Latvia. The synergy between the railway business and grain processing can help increase the operational efficiency of the company.

The head of the competing cooperative Kevil, Hannes Prits, expressed surprise about this deal. He noted that Operail had been transporting significant volumes of grain by rail for many years, but such a synergy had not been observed before.

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Prits pointed out that the railway network in Estonia was designed with the interests of another country in mind. However, he acknowledged that for transportation over long distances, such as 100 kilometers or more, railway transportation remains cost-effective.

Minister Vladimir Svet added that a national railway carrier is no longer needed in Estonia. He emphasized that privatization is happening where the private sector can effectively provide services, and there is no need to use state funds to support companies.

The Minister stressed that the government aims to reduce its risks and decrease the need for additional investments in the railway transportation sector.

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