Transport minister: There has been lots of interest in Operail
According to Estonian Minister of Infrastructure Vladimir Svet (Center), a number of companies were very interested in buying Operail. The best offer for the purchase of the state-owned rail transport company was made by the owner of Tartu MiIl.
The state has started negotiations with Tiigi Keskus, the owner of Tartu Mill, which made the best binding bid in the tender auction, for the sale of Operail.
Svet said there has been a lot of interest in Operail.
"We have had several Estonian companies come along to bid, and there have also been interested parties from abroad. However, it seems to be quite a competitive market with more than one player," he said.
Uuno Lausing, a member of Tiigi Keskus and Tartu Mill's management board, said the company sees the rail business as a promising new direction and plans to continue offering freight and rolling stock repair services in Estonia and elsewhere.
In a written statement, Lausing told ETV show "Aktuaalne kaamera" that, as the final terms of the sale and purchase agreement are currently being negotiated, no further information or comments could be given at this stage.
The company also announced that the transaction has certain synergies with its existing business portfolio. Tartu Mill owns Estonia's largest grain mill and a mill in Latvia. Tiigi Keskus owns three grain storage facilities.
Hannes Prits, head of competitor Kevil, a grain cooperative, now hopes to see these synergies emerge.
"I was actually rather surprised. We ourselves have worked with Operail over the years, and at certain times we have transported quite considerable quantities of grain by rail to the ports of South Estonia. But I can't think of any such great synergies, even now. Okay, in the case of transport, for rail transport of 100 kilometers and above, there is an effect, but the railway network in Estonia has been designed, as we know, taking into account the interests of a different major country operating here," Prits said.
According to Svet, there is no longer any need for a national rail carrier in Estonia.
"In places where the private sector can actually manage very well to provide the service itself, where there is no reason to spend taxpayers' money, we are going down the road of privatization, and where the state does not need to take more risks and does not need to invest more," the minister said.
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Editor: Merili Nael, Michael Cole
Source: "Aktuaalne kaamera"