Estonian Privatisation

The magazine Business Central Europe writes in its February issue that the sale of Estonian passenger operator Edalaraudtee to British GB Railways has been cancelled, as GBR says more subsidy is required to run "socially necessary" services. I reported this on Erik's Rail News and received the following email from GBR:

     To: "'sandblom@artech.se'" 
Subject: Estonian Railsale
   From: Peter Meades 
   Date: Fri, 23 Feb 2001 13:02:15 -0000

Your comments concerning GB Railways pulling out of the Edalaraudtee
operation are wholly inaccurate.

GB Railways are continuing their involvement with Edalaraudtee and
formalising agreements. Some services are being replaced by buses as a short
term arrangement only.

It would be appreciated if you could amend your copy. 

Peter Meades
GB Railways 

Estonian Rail Sale Cancelled The privatisation of the Estonian freight operator Eesti Raudtee has been halted by a court pending a hearing in March. One of the losing bidders, RER, is going to court over the sale because winning bidder Rail Estonia doesn't have the experience and financial know-how to operate the line. The public is said to be unhappy with the government's perceived affinity for American ownership. RER is backed by Swedish SJ, while Rail Estonia is backed by RailAmerica. The sale of passenger operator Edalaraudtee to British GB Railways has run into trouble as GBR says more subsidy is required to run "socially necessary" services. Some services are now being run by busses. See also letter from GBR. (February 19th, source: Business Central Europe, Feb. 2001)

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