Operail will begin implementing the future strategy plan that was developed in autumn. The strategy aims to improve the company\u00b4s economic results by involving a private investor. This strategic step would also enable the expansion of operations into foreign markets.<\/p>\n\n
Operail\u2019s management prepared the strategy plan last fall at the owner\u2019s request. Operail\u2019s Council approved the strategy at the end of November. At the same time, the plan was introduced to the owner\u2019s representative, Minister of Climate Kristen Michal.\u202f Operail was then left to wait for the government\u2019s approval to proceed with the plan.<\/p>\n\n
Yesterday, on February 15th, the government made a substantive decision during the cabinet meeting. They proposed the full privatization or divestment of Operail, which is a part of Operail\u2019s strategic plan.<\/p>\n\n
\u201eRail transport is a volume business where small quantities and short journeys do not pay off. Unfortunately, in the context of railways, Estonia is a very small country. Moreover, geographically we are located at the endpoint of the railway network. Therefore, it is difficult to achieve profitability by operating solely on the Estonian rail freight market,\u201d explains Merle Kurvits, member of the board.<\/p>\n\n
\u201cSelling the company to a private investor allows Operail to expand its operational scope towards Europe, which is a competitive advantage in a volume business. This also contributes to preserving and developing the railway sector as the most environmentally friendly and safest mode of transport in Estonia. This in return boosts our industrial and logistics sectors and consequently, the overall Estonian economy,\u201d added Kurvits.<\/p>\n\n
Operail will start implementing the strategy plan immediately, including the first steps of privatization, but the precise timeline of the process is yet to be decided.<\/p>\n\n
\u201cWe will do our best to ensure that the process is both correct and fast because Operail\u2019s business activities on the Estonian freight market are currently unprofitable, but today we have the resources and potential that could bring significant benefits to both the future private owner and the Estonian railway sector,\u201d said Kurvits.<\/p>\n\n