Tallinn to Merge Public Transportation Firms (7)

Photo: Scanpix/Postimees
1/12/2012 10:54 AM
Category: Economy

As a cost-savings measure, the capital's bus company and its tram and trolleybus company will become one entity at the beginning of 2013, the city government has decided.

According to Deputy Mayor Arvo Sarapuu, the change will reduce expenses not only in core managerial and administrative areas, but also in accounting, personnel, and information technology, Postimees reported.

It would also eliminate the duplication of routes and allow for a unified dispatch system, Sarapuu noted.

Sarapuu said the merger would cut costs by nearly 10 million euros per year, making more realistic the possibility that Tallinn could make public transportation free for all residents starting next year - an idea recently floated by the city administration.

The Tallinn City Government is now setting up a temporary committee to push the merger through. Its first report is due in April.


Steve Roman

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