The Estonian state-owned company Operail has sent its old locomotives to the scrapyard. They will now be dismantled, and the remaining materials will be sold off to interested parties. The move comes amid a difficult financial situation following the loss of Russian transit goods.

The locomotives to be scrapped were purchased in 2002 and had not operated in Estonia for a while. Instead, they functioned as providers of spare parts. The remaining parts of the locomotives are now being sold off. Metal recycling company Cronimet submitted one winning bid for 32 diesel engines. While the price of this deal is not disclosed, the amount of metals amounts to nearly 5,000 tonnes.

Financial trouble

The loss of Russian transit goods led to large financial losses for Operail. The future of the company remains uncertain as Operail proposed various business strategies to the Estonian government. According to the Ministry of Climate, Operail can either continue business as usual, close altogether or find new sources of revenue. A representative of the company pointed out that the Estonian market is too small, and international ventures may present a way out.

Earlier, Latvian rail operator LDZ announced that they had won tender contracts for the transportation of woodchips and petroleum products on the Estonian market in an effort to expand internationally. The move by LDZ also came after the suspension of business activities with Russia.

Also read:

• Operail: ‘Further cuts would compromise rail safety in Estonia’
• Operail’s volumes drop again in the first half of the year
• Operail stops rolling stock leasing as well as regular freight services
• Operail sells more assets, ‘nothing to do with Russian business’
• Estonian Operail sells Finnish business to Nurminen Logistics