Category: Estonia

LTG Cargo deals with a rising number of attempts to evade sanctions

Attempts to circumvent Western sanctions on Russia and Belarus via rail through Lithuania grew exponentially between March and May. The Lithuanian national rail freight operator LTG Cargo said that four wagons were blocked and sent back at the Lithuanian border in March, while in May this number increased to 62. The company did not provide…

Freight to contribute little to billions of Rail Baltica-induced growth

Rail Baltica is an economically viable undertaking. While its projected cost has grown immensely in recent years, the high-speed rail line is expected to contribute up to 23,5 billion euros to the Baltic economies. Freight, however, is not likely to contribute much. An independent cost-benefit analysis (CBA) found that Rail Baltica will likely add between…

Estonian Operail to be auctioned off and privatised

Operail, the Estonian state-owned rail freight operator, is for sale. On 6 June, the government approved the imminent privatisation of the company. It has struggled to maintain profitability following sanctions against Russia and Belarus. Operail is now being auctioned off completely. The Estonian climate ministry had made a proposal to that end, which the government…

Rail Baltica mainline construction takes off in Latvia

Latvia is commencing construction works on the Rail Baltica mainline. The Rail Baltica team and its international partners gathered in Riga to mark the occasion, but uncertainty remains about the final shape Rail Baltica will take. The construction of the 230-kilometre Latvian mainline will take place in stages. Initially, Rail Baltica will be working on…

Costly Rail Baltica to cut ambitions and seek funding elsewhere

As Rail Baltica’s projected costs are mounting and continue to grow, the project’s feasibility is in question. Uncertainty surrounding EU funding is forcing Rail Baltica to look elsewhere and readjust ambitions. As Rail Baltica eagerly awaits the results of the January application round for EU funding, discussions surrounding pan-Baltic railway continue. It is uncertain how…

Operail CEO refutes media accusations: “Operail Finland sold at fair price”

The CEO of Operail, Merle Kurvits, has responded to media attention for Operail Finland’s sale. Estonian media recently said Operail Finland’s sale was a 12 million euro “gift” to the Finnish rail industry. Kurvits refutes the accusations of underselling, saying that Operail sold the subsidiary at a fair price. Operail sold its subsidiary Operail Finland…