Estonia, Transport

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 14:17

Switching bus service operators to cost city of Tallinn millions of euros

BC, Tallinn, 17.01.2019.Print version
The city of Tallinn is to terminate the contract with MRP Linna Liinid, the public transport operator in the capital city, and needs to come up with a couple of million euros of additional funding to keep running the bus routes previously serviced by the company, according the Postimees information reported LETA/BNS.

The contract with MPR Linna Liinid, which serviced 11 bus routes in the city, has run into payment difficulties, which have resulted in the termination.


"Compensation by MRP for early termination of the contract is 700,000 euros," head of the municipal transport board Andres Harjo said.


Harjo added that the volume of routes serviced by MRP is roughly four million kilometers and the price per kilometer with MRP is 40 to 50 cents lower than that of Tallinn public transport company Tallinna Linnatranspordi AS (TLT), which means that the cost of TLT taking over MRP's routes may reach millions of euros. TLT is to take over said routes starting from February.


Tallinn Deputy Mayor Kalle Klandorf said that the company leasing buses to MRP informed the city in writing on Jan. 15 that it would take over the vehicles rented to MRP.


"We then wrote to MRP Linna Liinid, asking for an explanation to the situation. In its reply, MRP requested for the contract for public  passenger transport to be terminated starting from Feb. 1," Klandorf said.






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