Estonian Railways’ losses expected to worsen in the coming years
The losses of Estonian Railways are expected to continue and worsen in the coming years. Earlier, Estonia reported a decline of 43 per cent in freight volumes following sanctions on Russian goods.
The loss of freight volumes has led to passenger transportation exceeding freight transportation, according to Estonian Railways’ commercial manager Arthur Raichmann. Whereas 9,5 million tonnes of goods transited through Estonia in 2021, only 2,1 million tonnes of that amount remained in 2023. Raichmann does not expect this development to reverse anytime soon.
The Estonian state has compensated the railway company with 31 million euros to compensate for the losses. The country expects that further financial support is needed in the upcoming years. Estonian Railways may need up to 40 million euros to fill the financial gaps.
However, the ministry of transport also pointed out that Rail Baltica is expected to increase the importance of rail and potential freight capacity. The planned railway is supposed to connect all three Baltic countries with the rest of Europe on a high-speed European gauge line by 2030.
