The Estonian company Operail has been sold entirely for €19 million. The deal was finalized on December 9, with AS Tiigi Keskus becoming the owner. This was reported by the railway transport news portal Railway Supply.

Operail

Why Was Operail Privatized?

After the war in Ukraine began, freight volumes on Estonia’s railroads declined significantly. Minister of Infrastructure Vladimir Svet explained that rail businesses thrive only with high volumes and longer routes.

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Estonia’s short transport network made it hard to achieve profitability, so the government decided to sell Operail to a private investor. The minister noted that such activities are not of strategic importance to the state.

Operail’s Future Plans

The new owner of Operail, Richard Tomingas, intends to develop the company and invest in container transportation. He highlighted the increasing importance of rail transport because climate goals require shifting freight from roads to railways. AS Tiigi Keskus created a subsidiary, RailProject OÜ, to handle the acquisition. All Operail assets, contracts, and employee agreements were transferred to this subsidiary as part of the deal.

For clients, partners, and employees, nothing will change. Workers will continue their duties, including freight transportation, maintenance, and rolling stock repairs.

Status of Sanctioned Railcars

Several Operail railcars, owned by a Russian company, remain frozen due to international sanctions. These cars cannot be returned or purchased, and they will not be used for commercial activities. Their future depends on developments in international law.

Operail Embraces New Opportunities

The completion of the privatization represents a critical step for Estonia’s rail industry. Operail can now adapt to new economic challenges and introduce modern solutions to enhance its operations.

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