Estonian Railway split has increased the costs
Published: Wed, 2014-11-26 11:30Ahti Asmann, CEO of Estonian Railways, says that the splitting of the company into single freight business and infrastructure business two years ago has increased costs.
In an interview to Eesti Päevaleht, Asmann said that the division broke up a functioning business model. “The objective was to increase competition and bing prices down, but this has not happened because the large number of operators does not automatically mean lower prices,” he said.
According to Asmann, capacity overlays, doubling of support services and disintegrated dispatch services slow down the movement of freight trains, while high railway usage fees are making Estonian operators less competitive in comparison with neighboring countries.
Source: Eesti Päevaleht