{"id":25136,"date":"2024-04-05T20:12:31","date_gmt":"2024-04-05T10:12:31","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=51364"},"modified":"2024-04-05T20:12:31","modified_gmt":"2024-04-05T10:12:31","slug":"operail-finland-sale-was-12-million-euro-gift-to-finnish-business","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=25136","title":{"rendered":"Operail Finland sale was 12 million euro \u201cgift\u201d to Finnish business"},"content":{"rendered":"

Estonia lost 12,3 million euros with the sale of the Finnish branch of Operail. Last year, it sold Operail Finland, the former name of the subsidiary, to Nurminen Logistics. Estonia sold the subsidiary at a price below its fair value, leading to allegations of a secret sale.<\/strong>
\n<\/span>As part of the privatisation of Operail, Estonia sold off the Finnish branch of its national railway operator. Nurminen Logistics bought the branch at a price far below its fair value. According to Estonian publication Eesti Ekspress, Nurminen Logistics\u2019 2023 financial report reveals that Estonia incurred a 12,3 million euro loss as a result of the sale.<\/p>\n

The February 2023 transaction amounted to 27,7 million euros<\/a>. The vast majority – 18 million euros – covered a loan for the purchase of locomotives. The remaining 9,2 million euros were Operail Finland\u2019s net assets. Nurminen Logistics later valued the assets at over 21 million euros. Consequently, it gained 12,3 million euros.<\/p>\n

A sale in secrecy?<\/h2>\n

Eesti Ekspress says that it wrote already in 2022 that Estonia planned to privatise Operail. The sale reportedly took place \u201cunder the cover of secrecy\u201d without involving the public or Estonian railway businessmen. As public competitions usually yield better results, \u201cthe Estonian state gave a gift of 12 million euros to Finnish railway businessmen,\u201d according to Eesti Ekspress.<\/p>\n

The head of Operail at the time, Raul Toomsalu, denied the allegations of secrecy. “To my knowledge, there were no complaints from any company claiming they were interested in the Finnish assets but unable to participate,” he said. According to Toomsalu, Estonia invited hundreds of companies to participate in the competition for the Operail Finland takeover.<\/p>\n

Little interest<\/h2>\n

Eesti Ekspress also points out that there was little interest in Operail as a result of Russia\u2019s invasion of Ukraine. Sanctions hurt Operail\u2019s business, which saw previously large commercial interest disappear. The Estonian government itself also forced Operail Finland to quit transporting Russian nickel. This may also have contributed to the decline of business interest in Operail Finland.<\/p>\n

RailFreight Summit 2024<\/h2>\n

Are you interested in learning more about rail freight in the Baltics? Then the\u00a0RailFreight Summit 2024<\/a>, taking place between 15 and 17 April in Warsaw, Poland, is the perfect occasion to connect with industry professionals and dive deeper into the topic.<\/p>\n

This year\u2019s edition of the RailFreight Summit turns the spotlight on trending issues like the TEN-T expansion, connections with Ukraine, significant projects like Rail Baltica and their potential for the creation of more efficient logistics corridors, Poland\u2019s role as a logistics node and a performance assessment of intra-European and Eurasian services.<\/p>\n

You can check the event\u2019s programme\u00a0here<\/a>\u00a0and secure your participation ticket\u00a0here<\/a>. Additionally, do not miss the chance to explore the\u00a0networking<\/a>\u00a0and\u00a0site tour<\/a>\u00a0possibilities that could provide excellent opportunities for boosting your business in Poland and the CEE region.<\/p>\n

Also read:<\/strong><\/p>\n