Operail, the Estonian state-owned rail freight operator, is for sale. On 6 June, the government approved the imminent privatisation of the company. It has struggled to maintain profitability following sanctions against Russia and Belarus. Operail is now being auctioned off completely. The Estonian climate ministry had made a proposal to that end, which the government…
Category: sanctions
Low freight volumes: Russian Railways loses up to 50 billion rubles
Freight volumes on the Russian rail network keep falling. Russian Railways (RZD) likely incurred a 50 billion ruble loss due to the decline over the first months of 2024. The trend is unlikely to reverse soon. For the past seven months, freight volumes on the Russian rail network have been in decline. According to Forbes.ru,…
Iran and India overcome key hurdle for Chabahar’s INSTC port operation
Iran and India have signed an agreement that will enable the purchase of cargo handling equipment for the port of Chabahar. The port, located in the south of Iran and a key node of the International North-South Transport Corridor (INSTC), is operated by India. The question of cargo handling equipment has stalled operations at the…
Russia approves 3,7 trillion ruble Far East rail modernisation
Russia has approved further modernisation works of railway infrastructure in its Far Eastern region. On the 50-year anniversary of the so-called Baikal-Amur line (BAM), the country confirmed that it will be spending 3,7 trillion rubles to boost throughput capacity to 270 million tonnes by 2032. The approved investments are part of the third stage of…
The Middle Corridor remains too expensive as an alternative China-Europe route
The Middle Corridor, a multimodal China-Europe freight route through Central Asia, has garnered international interest as a potential alternative to transporting freight through Russia. Illustratively, the EU has allocated 10 billion euros for its development. The corridor remains too expensive to become a route of preference, explains Roland Verbraak, general manager of BTTMultimodalGroup. BTT, a…
Russia to invest 156 billion rubles for Belarusian rail access to Baltic Sea
Russian Railways (RZD) intends to invest 156 billion rubles (1,5 billion euros) to enable Belarusian exports via the Baltic Sea. EU countries blocked the transit of Belarusian goods through its territories, and now Russia is coming to the aid of its steadfast ally. Additionally, Belarus will gain rail access to a brand new port in…
Russia grows first quarter rail exports to China by 27,5%
Russian rail exports to China have grown by 27,5 per cent year-on-year in the first quarter. In total, Russia exported 9,4 million tonnes of freight during this period. The growth reflects an ongoing trend of growing rail freight volumes between the two countries. As a result of Western sanctions, it is geopolitically important for Russia…
Russia and Iran finalising Rasht-Astara agreement
Russia and Iran are reportedly finalising an agreement for the Rasht-Astara railway. The line in northern Iran is a crucial missing piece for the western branch of the International North-South Transport Corridor (INSTC). According to the agreement, Russia will bear the brunt of the costs. A meeting between the Iranian ambassador in Russia and a…
Operail CEO refutes media accusations: “Operail Finland sold at fair price”
The CEO of Operail, Merle Kurvits, has responded to media attention for Operail Finland’s sale. Estonian media recently said Operail Finland’s sale was a 12 million euro “gift” to the Finnish rail industry. Kurvits refutes the accusations of underselling, saying that Operail sold the subsidiary at a fair price. Operail sold its subsidiary Operail Finland…