Michal promises to reshape Estonian Railways (7)

Kristen Michal (Postimees/Scanpix)
4/30/2015 10:30 AM
Category: Economy

Minister of Economic Affairs and Infrastructure Kristen Michal said in an interview that if the turmoil in the state-owned Estonian Railways' board continues, he will recall the management and supervisory boards.

He told Eesti Päevaleht the problem with the company is that investments have been cut to a minimum as cargo volumes keep dropping.

The company is looking for a new CEO with the deadline for candidates to register passing on May 1. Michal said that if the confusion and chaos ensues, he will clear out both the management and the supervisory boards, just like with Enterprise Estonia.

He also said EVR Cargo, a subsidiary of Estonian Railways, has been mismanaged to decrease the value so that the state would be forced to sell it at cut-price. “I do not want to make personal attacks, but one supervisory board member named the events in Estonian Railways as sabotage,” he said, adding that there are a few very powerful players in the sector.

Cargo volumes on Estonian railroads have been decreasing ever since 2007 when Russia began to decrease goods transported through Estonia. The cargo side of the business pays the majority of rail network upkeep costs, although it is the passenger side which has received large state investments in recent years.

J.M. Laats

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