Sale Agreement for Operail with Tiigi Keskus Signed in Estonia

On October 31, 2024, Estonia signed a sale agreement for Operail with Tiigi Keskus. The transaction will finalize once the Competition Department grants permission for the company merger. This was reported by the railway transport news portal Railway Supply.

In June, a two-stage auction commenced for selling Operail’s freight and maintenance business, attracting high offers. Tiigi Keskus, primarily focused on property management, provided the top bid at auction. Additionally, it controls Tartu Mill, a major grain processing and pasta production conglomerate in the Baltics. For Tiigi Keskus, the railway business offers a promising expansion aligned with its current portfolio.

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Tiigi Keskus plans to extend its freight and railcar maintenance services across new regions in Estonia. This strategic move aims to strengthen its market presence by utilizing existing resources to improve logistical infrastructure.

Tiigi Keskus’s Expansion Plans After Sale Agreement for Operail

Previously, until early 2023, Operail also operated wagon rentals and freight services in Finland but gradually withdrew from these areas. This decision allowed Operail to concentrate on services deemed strategically important for Estonia.

In February 2024, the Estonian government confirmed its decision to privatize all remaining divisions of Operail, concluding a lengthy restructuring process. These changes aim to boost management flexibility and improve the company’s responsiveness to market shifts.

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