The supervisory board of state-owned Estonian Railways (EVR) decided on Friday to accept the resignation of CEO Sulev Loo, who will continue on the job for another three months until his replacement is found.
It was with a heavy heart that the supervisory board decided to accept Loo's resignation, board chairman Priit Rohumaa told BNS. It was agreed that Loo would stay on for three months until a new CEO was found.
According to Rohumaa, Loo apparently wishes to continue working in the transit sector. His vision as chief executive of the railway company had been to pay more and more attention to infrastructure development. "Sulev has said that, above all, he has strong commercial acumen," the supervisory board chair remarked.
"I'm rather commerce-oriented, having worked in logistics chains and trade," Loo said in a press release. "The transit environment in which EVR is operating is strongly influenced by economic policies. In the present-day politically complicated situation, EVR needs a leader fascinated by transit and infrastructure management."
According to Rohumaa, transit is in a sorry state and EVR needs an additional €23 million to cover costs. Around 10 million tons of freight would plug the whole, but as long as this cannot be achieved, the state would have to find the money.
In his words, EVR would need €14 million in a direct subsidy plus a further €9 million through passenger train operator Elron. The Ministry of Economic Affairs and Communications, the Economic Affairs Committee of the Riigikogu and the Ministry of Finance are actively looking for funds, he said.
All of this means that the state-owned railway company must find internal efficiency, which Rohumaa said will be an important task for the next chief executive.
Editor: Aili Vahtla