Budget, Estonia, Financial Services, Railways, Transport

International Internet Magazine. Baltic States news & analytics Friday, 26.04.2024, 00:08

Eesti Raudtee is likely to end the year 2014 with 4 mln euros loss

BC, Tallinn, 25.11.2014.Print version
Estonian state-owned railway infrastructure company Eesti Raudtee Chairman of the Board Ahti Asmann said the transit flows have dropped so much, that in 2014 the company's projected loss is four million euros, LETA/Public Broadcasting reports.

Next year's budget has already been compiled with nine million euro loss in mind.

 

Asmann said in national radio that it would certainly help Eesti Raudtee if state-owned passenger railway transport company Elron paid more infrastructure fees, but the amounts are so big that Elron would not be able to pay it. "I believe that it is not possible to reflect these costs in the ticket price, it's unreal. Probably Elron has some ability to pay more, but in the situation where 70% of their costs are financed with subsidies anyway, it is really a question for the state," said Asmann.

 

Asmann said that to get more financing for Eesti Raudtee, they are ready to reverse the company's restructuring, i.e. re-merge again the railway infrastructure (Eesti Raudtee) and cargo transport (EVR Cargo) companies, because in his opinion this would save money. Asmann said that separate companies also cause confusion in partners such as Russia, Belarus and Kazakhstan.

 

Asmann said that the state should decide what it wants from infrastructure. "The state does not consider infrastructure as the environment for business development, but as an opportunity to earn money. We are now tilted in the direction that companies provide for infrastructure, instead of the state developing infrastructure in order to enable companies to develop and the mobility of people to improve, "said Asmann.






Search site