Eesti Raudtee projects this year’s cargo transport volume to be 18.5 million tonnes. This means a 24% decline in comparison with last year. The company will thus lose around EUR 15 Million.
Cargo transport accounts for 95% of revenue generated by the railway and CEO of Estonian Railways Ahti Asmann estimates that 25 million tonnes is the limit where passenger train transport could be kept at reasonable level without support from the state budget. The tariffs of goods for carriers have already reached a level, where they become uncompetitive, and cargo transport prices have increased a lot already. Thus there are two choices – either to get the money from passengers or increase state subsidies to passenger train traffic.
Source: www.baltic-course.com
Photo: www.baltic-course.com
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