Edelaraudtee Demands €5 Million From State

Photo: Postimees/Scanpix
8/23/2013 11:53 AM
Category: Economy

Privately-owned rail operator Edelaraudtee has taken the state to court in two separate cases linked to the acquisition of the new Stadler trains that are being introduced on the nation's lines.

Edelaraudtee spokeswoman Kersti Gorstov told Postimees today that the company will suffer losses amounting to nearly 5 million euros after the state prematurely terminated its contract to carry passengers on the nation's four long-distance lines, adding that the company is also disputing the decision to hand the servicing of those lines to state-owned Elektriraudtee, effectively re-nationalizing rail passenger service.

The state-owned company, which currently services only commuter lines in the Tallinn vicinity, will replace Edelaraudtee on the busy Tartu-Tallinn line and other long distance lines from January 1, a year before the initial contract with Edelaraudtee would have ended.

The daily reported that the state had offered Edelaraudtee 100,000 euros in compensation for the termination of the contract.

Elektriraudtee is in the process of acquiring 38 Stadler diesel and electric trains, the cost of which is mostly being covered by EU Cohesion Funds.


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