Estonian railroads need more subsidies than state offers

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CEO of Edelaraudtee said that volumes of goods traffic must be noticeably diminished when state doesn’t support more than written in the budget. Elektriraudtee will get 25 pct less money than this year, writes Päevaleht Online.

Kalvi Pukka, CEO of Edelaraudtee told Päevaleht Online that budget has given Edelaraudtee EEK 182 mln for next year, it’s about as much as this year.

“When amount stays as it is, we can’t continue traffic in that capacity as today, because expenses have grown considerably and with that number is not possible to come out,” said Pukka.

He said that details haven’t been discussed with the ministry yet and more serious talks are ahead.

“What will be the volume of goods traffic next year and precise subside from the state, depends on negotiations,” said Pukka.

He wasn’t willing to say how much money is needed, but he has told that number to the Ministry of Economic and Communication Affairs.

The state will give Elektriraudtee EEK 54 mln, which is 75 pct of EEK 72 mln, amount that Elektriraudtee got for this year. Representatives from Elektriraudtee said that this may bring along distinguishable diminishing in train traffic or raise tickets for tens of percents.

“Everyone is complaining about their tough destiny, but ministry and management board of the company must both deal with it and look, which prices go up and what are more specific needs for reparation,” said Juhan Parts, Minister of Communication and Economic Affairs.