Estonian Railways on the verge of leadership change ({{commentsTotal}})

The supervisory board of the state-owned Estonian Railways has proposed opening CEO talks with Sulev Loo, who agreed and has now left the board of his previous employer, logistics company Tarcona.

Loo said he wants to strengthen the company's logistics and transit section and make it more efficient.

“The full picture must be compiled and the team assembled. It is a company in turmoil. I have been in the business the previous 18 years and complicated challenges have always been interesting,” Loo told ETV.

The company has been searching for a new CEO for months with the previous head, Ahti Asmann, leaving in June, after a scandal.

Raivo Vare, the head of the supervisory board, said Loo has great experience of the field and has international grasp. He said Loo knows logistics and not only with Russia, but with other Commonwealth of Independent States nations too.

Loo, 45, has built up and led a number of logistics companies. According to Delfi, Loo was on a 30,000-euros-per-month salary at Tarcona, but as the head of Estonian Railways, he could be earning closer to 9,000 euros.

Estonian Railways relies heavily on transit from Russia, but volumes have been decreasing since 2007. New economic affairs minister Kristen Michal said shortly after his appointment in April the company is mired in confusion and chaos and changes in both the supervisory board and management are needed. He claimed that EVR Cargo, a subsidiary of the company, has been knowingly mismanaged, to decrease its sale with the aim of forcing the state to sell on the cheap.

Editor: J.M. Laats

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