Why choose Estonia?
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ESTONIA
Why choose Estonia?
Estoni E n a is located in the ce ent ntre of Northern Europe, e in the mosst advvan e, ance c d and d innovative economic region surrounde in ded byy maj a or cities, suc ch ass Mos o cow, w w, St. Petersburg, Helsinki, Kotka, Sto t ck to c ho olm l , Copenhagen, Oslo o, Wa W rs r aw w, Riga, and Minsk. Goods from Estonia reach 50 million afuent customers in 24 hours, and 300 million in 48 hours.
Why choose Estonia?
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Due to its unique geographical location at the Baltic Sea, Estonia has been a trade gateway between East and West for centuries. Today, Estonia is the eastern border of the European Union. Tallinn, the capital of Estonia, has still not lost its significance of a medieval Hanseatic town as an economic, trade and cultural centre centre. Being successfully integrated into the family of the European countries, Estonia is a good example of the Nordic credibility and flexibility of the new Europe. The prospects and economic development of Estonia have been remarkably influenced by close relations with its neighbours – Sweden and Finland. The historical experience as a country of the former Eastern Bloc, gives Estonia an edge in communicating with the CIS. The location and trading expertise of Estonia have facilitated the country’s rapid economic growth and its becoming a business-friendly state. The transit flows have provided the basis for the creation and devvel elop opme ment nt of pr prop oper er infr in fras astr truc uctu ture re – the rai ailw lway ayss, ports ts and nd hig ighw hways are in goo ood d co cond ndititio ion. n.
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No res No esttr tric tri ictition ion onss on forei eign ign g cap apiitital al
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Incorp Inco In rpo por orat atitio ion of of a com ompa mpa pany ny tak akes onl nly ly a fe few mi min inu nute nut tes tes
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Unco Unco Un comp mplililica mp cate ca ted te d an and d tr tran tran ansp spar sp aren ar entt ta en taxa xatition xati on sys yste ste tem em
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Corp Corp Co rpor orat ate te in inco come m taxx 0% me
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Cons Cons Co nser erva er rvative titive e budge udge ud gett po polilicy cyy
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Esto Est Es toni nia ia is is an EU mem emb ber-sttat ber be ate te an and d ititss of offi fficiiall cur urre renc re ncyy is nc is the he Eur uro o
Why choose Estonia?
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Why choose Eesti Raudtee?
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Free cap Free Fr apac aciitity ac ity bo both h on ra railililwa ways wa ys and d in th the he port rts ts
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Free com Free Fr ompe petiitition ion
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Inffrastructure in a very good d condi ditiion, enabl bliing speed d off 120 km/h /h for passenger trains i and 80 km/h for freight trains
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Deep por Deep De ortts ts tha hat al hat allllo low ha low hand ndli dliling ng ves esse sells se ls up to to 300 000 DWT
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1500 metre station yards at border and intermediate stations that provide proper conditions for servicing heavy and long freight trains
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Qual Qu alit litityy an and d re reliliab abl ble le tra raffi ffic ffi c man anag agem emen entt en ensu suriring ing fas astt ci circ ircullat atition ion off wag agon onss
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Geogra Geog raph phi hic icall locat atio tio on thatt ena nabl bles bl es fas astt ac acce cess ss to al allll impo import rtan tantt regi gion ionall cen entr tres tr es
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Eestiti Raud dte tee ad dmi m ts tra raiins thatt weiigh h up p to to 520 00 to tons ns or 57 sttandard d d unitits in th he e sta tatitions off Koidula and Va alg ga, a and d up to 5600 tons or 57 7 sta t nd dard unitss in the station of Na arv r a. a With an agreement off Oct c ober e Railways Narva sttat a ion n ca can admit especially heavy and long trains n witih ns a weight of 70 7 00 gro ross tons or 71 standa da ard uni nits t ts
Why choose Eesti Raudtee?
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Why W Wh hy choose hy cho ch oo oos os o se Estonia? Est sto sto ton niia nia ia?
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Ahti Asmann Chairman of the Management Board – General Director of AS Eesti Raudtee
The Estonian Railways, during its 142-year history, were expected to keep up with many requirements of the times. The consistent and sustainable development of the railways through wars, changes of governments and state systems, as well as political regimes is a good example of flexible and quick adaptability to very different economic and political conditions. Development continued even in the unstable economic environment of the recent years. Through the whimsies of history, Eesti Raudtee (Estonian Railways) has reached a new milestone. The sums invested in the railways have never been so large, and the railway infrastructure in such good condition as now. Over the last five years, Eesti Raudtee together with the European Union structural funds has invested in the maintenance and development of the railways and railway surroundings approximately 200 million euros. During this period, all the principal railway lines have been overhauled.
Ahti Asmann
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Main contributions have been made to the renewal of the obsolete railways, renovation of the passenger platforms, improvement of the railway tracks to increase the train speed and quality growth in transport of passengers, including the construction and maintenance of pedestrian tunnels and bridges. The objective of the performed work is to bring the entire railway infrastructure in compliance with the travel speed of 120 km/h for passenger trains and 80 km/h for freight trains, while ensuring safer train traffic with lower vibration and noise levels. The past year has been epoch-making for Eesti Raudtee in several ways. In addition to the rapid development of the infrastructure quality, thorough rearrangements have been taken place in the structure of the company and optimization of business business. The Company’s activities were influenced most by the division of the Group, as a result of which AS Eesti Raudtee became a railway infrastructure enterprise, responsible for the construction, management and maintenance of railway infrastructure, including traffic control. Moreover, Eesti Raudtee carries out the duties of the railway administration. The basis for long-term success and sustainability lies in the efficiency of business processes. Therefore, in addition to the development of the infrastructure it is important to concentrate on the optimization of business. The development of freight transport and growth of transit operations through Estonia have significant importance for the successful functioning of the Estonian railway transport. The renewed railway infrastructure provides the opportunity to service substantially larger freight flows than today. Ensuring the quality traffic control and close cooperation and coordinated development with ports, freight transport operators and partner countries provides the opportunity to preserve an active role in the international channel of logistics. The future objectives include thoroughly selected investment decisions and efficiency to preserve the quality of the freshly renovated infrastructure and ensure its maximum occupancy. Open market, as well as quality and increased capacity of the railway infrastructure provides the transit enterprisers with numerous advantages making Eesti Raudtee a reliable and high-grade partner.
Chairman of the Management Board – General Director of AS Eesti Raudtee
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Infrastructure
The investments made for the past years have considerably improved the safety, speed and comfort of Estonian railway traffic. The conditions for travelling at the speed of 120 km/h for passenger trains and 80 km/h for freight trains have been created on the major part of Eesti Raudtee’s infrastructure. Eesti Raudtee has three border stations, two of them on the border with Russia (Narva-Ivangorod and Koidula-Pechory) and one on the border with Latvia (Valga-Valka). The capacity of the border stations is 38 pairs of trains on the Russian border, and 18 pairs of trains on the Latvian border within 24 hours. The border stations as well as intermediate stations have 1500 metre station yards, providing proper conditions for also servicing heavy and long freight trains.
Eesti Raudtee’s infrastructure: capacity and traffic speed
Narva Paldiski
Tallinn
Sillamäe
Muuga
23/7,6*
Pärnu
Tartu Viljandi
Valga
18/4,5*
Koidula
15/5,4*
*Capacity/used *C i / d in i 2012 120/80 km/h
Infrastructure
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Facts about Eesti Raudtee’s infrastructure
Track gauge
1520/1524 mm
Overall length of railways
1128 km
Including double-track railway
94 km
Switches, pcs
1211
Length of electrified railways
132 km
Number of passenger platforms
122 in use
Number of stations
62
Capacity
56 train pairs per 24 hours
Facts about Eesti Raudtee’s infrastructure
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Koidula railway border station
The biggest infrastructure development project in Estonia for the past years is Koidula railway border station which was opened in the south-east of the country in 2011. The construction of the European Union’s most stateof-the-art border station at the Estonian-Russian border was a significant transport and regional policy objective, which has a positive impact on the trade between the countries as well as on passenger carriage. In addition to the modern conditions of cargo control on the state border, the station creates the conditions for the carriage of all cargo groups, especially for the development of container transport and transport of animal and plant products, for example, for checking the cargo requiring plant check control.
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10 paiirss of ra rail aililss
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92 hec ecta tare ta ress re
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25.5 5 kililom omet etre tre ress off track cks ks
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The Th e sttat atitio ion fa ion faci cili ililitty ty als lso ho lso hous hous uses es a cus ustto toms and toms d vet eter ter eriin inar inar aryy cont ntro tro roll service as well as a locomotive and wagon railway repair workshop
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Node Nod No de Est ston o ia ia, Ru ia, Russ Russ ssiia ia and d Lat atvi via ia
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Capaci Capa Ca city ity up to 15 pa paiirirs irs off tra raiin ins pe ins perr 24 hou ours rs
Koidula railway border station
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Operators on Eesti Raudtee’s infrastructure
Estonian Esto an rai ailw lway ayy ma arrke ket is an op pen e mar arke ket et. Due to this is, fifive v railway companies oper op erat ate e on the he inf nfra rast s ru ruct ctur ure of Ees essti Rau audt d ee – thr hree ee off th them are e engaged in pas asse seng nger er tra rans n port rt and nd two w in carria iag ge of goods.
AS EVR AS R CAR A GO A stat state e-ow owne ned d co omp m any enga g ged in in car arririag age e of goods dss. It use sess 59 mai ain nliline ne loc ocom omot otitives, 11 shuntiting loco omo motitivves an and d ownss app ppro roxi ro xima xi ma ate telly ly 310 100 0 wa agons. In 20 01 12 EV EVR R Carg go ca carr rriied ied 18 18.4 milillilio ion to ons of goo oods ds. ds www ww w.ev evrc rcar argo go.ee ee E.R.S E.R S. AS A su s bsidiaryy of the inte tern rnat atio ona nal te term rmin inal al Vop pak a E.O O.S S. AS AS.. It use sess 18 mai aini liline ne loc oco omot ottiv iv and ives nd d 7 shu hunt hu ntin nt ing in g lo loco como co motititive mo vess. In 20 ve 2012 12 E.R R.S. S ca carr rriie rr ied a total ied of 7.7 7 milillililion on tons of goo oods ds.. ds www ww w.er ers er s.co com co m.ee GoR Rail il AS A pr priv ivat iv ate at e ca capi pita pi tall ba ta base sed se d co comp mpan mp anyy en an enga gage ga ged ge d in pas asse seng se nger ng er tra rans nspo ns port po rt. It ope rt pera rate ra tes te es the th e trai ains ins on ro rout ute ut e Ta Tallllllin inn in n-Mo Mosc Mo scow sc ow and Tal allililinn nn-S -St St. Pet eter ersb er sbur sb urg ur g. www.go g ra ail.ee Elek El ek ktr t ir i audt dttee AS A st stat ateat e owne ened companyy op ne perating electric train in ns in Tal alliinn n and d its vic cin nitiy. y In 201 013, 3,, the he com ompa p nyy wilill re pa repl p ac pl a e th the e en e titire re pre ese sent ent ele lect c riric ct c tr trai ain ai n flee e t fo or new ne w St Stad adle lerr tr trai ains ns. www.elektriraudtee.ee Edelaraudt d ee AS A private ca c pital ba base sed d ra r ilwa ay co compan comp mp pa y that ownss th the infrastructu t re on route from Talli llilinn n to south th-westt and d operates di diesell passenger traiins over Estonia. ww ww. w.ed edel.ee
Operators on Eesti Raudtee’s infrastructure
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Harbours
Estonian railway network provides means for transporting goods to seven harbours biggest of which is the Muuga Harbour owned by the Port of Tallinn. Estonian harbours are practically ice free and the majority of them can be expanded. The easternmost port – the Port of Sillamäe – is located just 25 km from the state border of Estonia and Russia.
TEU/ thousand
million/tons
Port capacities Petroleum and petrochemicals
Coal
Grain
Fertilizers
Other freight
Total
Containers
Port of Tallinn
43
5.5 - 7.5
3-5
2.5
3
58.5
450
Port of Sillamäe
5
1
0.5
6.5
1
1
Paldiski North Harbour Kopli Harbour
2
2
Miiduranna Harbour
2
2
Tallinn Bekker Port Total
52
6
4
3.5
0.7
0.7
5.2
70.7
450
Harbours
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Carriage of goods
In 2012 26.1 million tons of goods were carried on Eesti Raudtee’s infrastructure of which 19.9 million tons were transit goods, 0.8 million tons export and 1.4 million tons import goods. The volume of local transport amounted to 4 million tons. Petroleum and petrochemicals formed the biggest share of transport, constituting 59 per cent of the overall carriage volume, followed by oil shale (13.5 per cent) and fertilizers (12 per cent). The volume of carriage of goods in 2012 dropped by 14.4 per cent compared to 2011. The volume of container transport was 48,681 TEU, and over the year it had grown by nearly 49 per cent. The principal partner in carriage of goods was Russia, where 14.1 million tons of goods were loaded on route to Estonia. 2.8 million tons of goods from Belarus and 1.2 million tons of gods from Kazakhstan were delivered to Estonia. From Estonia, the major amount of goods was also shipped to Russia, a total of 1.1 million tons. Oil shale
Fertilizers Liquid mineral fuels
Chemicals
Bulk cargo
Ferrous metals Dry mineral fuels Timber and wood products Other goods
Carriage of goods
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Carriage of passengers
In 2012, railway infrastructure capacity was allocated to 95 electric passenger train lines and 28 diesel passenger train lines. 4.3 million passengers were carried by passenger trains within the country. The number of passengers travelling on routes Tallinn-Moscow and Tallinn-St. Petersburg reached 125.6 thousand. The investments made for the past years have significantly raised the comfort of passenger traffic – the speed of passenger trains has increased and the noise and vibration level decreased noticeably. Besides, in 2013 the passengers on Estonian railways shall start travelling in electric and diesel trains Flirt manufactured by the Swiss company “Stadler”. During 2013 the entire passenger train fleet will be replaced. The ordered trains will travel on the existing tracks at the speed of 120 km/h.
Carriage of passengers
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Safety
However, the fast development of technical conditions, which offers extra comfort to passengers, increases the hazards of moving on the railway. In order to provide a high-class railway carriage service it is a priority that a safe trafďŹ c environment is ensured on the managed railway infrastructure. The security is ensured by the technical condition of the infrastructure, on one hand, and by people’s awareness of railway safety on the other.
Safety
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Investments
Since 2007, about 200 million euros have been invested in the infrastructure of Eesti Raudtee. The investments made have signiďŹ cantly increased the infrastructure capacity and travelling speed in the carriage of goods as well as passengers. Pre-requisites have been created for ensuring high-quality carriage of goods and passengers. In 2012 the majority of the projects co-funded by the European Union were completed, which had started four years ago. As a result of the works done majority of the Estonian railway infrastructure has been brought in compliance with the travel speed of 120 km/h for passenger trains and 80 km/h for freight trains In order to adjust the railway infrastructure to the modern trains over 100 passenger platforms were renovated, additional investments were made in track and catenary renewal, reconstruction of railway lines on the Rail Baltic route and ensuring passengers’ safety.
Investments
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Over the year, a total of 40.2 million euros was invested; of this amount, European aid (Cohesion Fund, European Regional Development Fund) constituted 17.9 million euros. In 2013, AS Eesti Raudtee is planning to continue investing in the railway infrastructure with the assistance of the structural aid funds of the European Union. The investments for this year are intended to complete the renovation started in 2011 and contribute to the major repairs of the bridges, acquire maintenance and rescue equipment, likewise to renovate the electric equipment. The total amount of planned investments in 2013 is 36.9 million euros, of which 14.4 million euros will be provided by the European Union funds.
The investments made for the p past years y have created ■
Re R Rene ene newe wed we d ra railililwa wayy in wa infr inf fras fras asttr truc truc ucttu ture tha ture hat cr hat crea eatte ea tes pr tes pre e-re requ re quiis qu isitites isit es for the he provision of high quality goods and passenger transport services
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Maxi Ma ximu imu mum m in infr inf fras fras asttr truc truc ucttu ture ture e cap apac acitity aci ac ity
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Trav avel ellling ling n spe peed ed d on th the e ma majo j r pa p rt of th he in inffras a tr t uc cture ture at 12 tu 120 0 km m/h h forr pa fo passsen enge gerr tr trai ains ns and 80 0 kkm m/h / for or frre eight tra ain inss
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Trafffic wi Tr with ith h low o noi ois ise se and d vib ibra ration tition levvel el
Investments
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International Relations
Principal priorities of Eesti Raudtee in international relations include:
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operat oper atiting ing un und der int der intern ternat atitiona ionall trea treatitities es witith h ou ourr part rtne tners rs (CI CIS S countries, and the Baltics)
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part rtitic icip ici ipat atitin ing in ing in the he act ctitiv ivitity ivi ity off int nter ter erna natition ionall rai aililw lway org lway rgan aniis an isat atitio ions ions ns;;
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develo deve lopi ping ng bililat ater eral al rel elat atio ions ns witith h th the e ra raililwa ways ys of th the e ne neig ighb hbou ouriring ng countries;
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att at ttrac tractiting ing tra raffi ffic ffi c flows to th the he inf infras frasttruc tructture ture of Ee Eest stiti Ra Raud udt dtee tee
Within the framework of the activity of the Organisation for Co-operation between Railways (OSJD), the representatives of our company participate in the work of the Commissions based on the activity plan, which, with our participation, was approved at the Conference of General Directors in Tallinn. Also, this year we have been given the honour to organise the Session of the OSJD Conference of Ministers, which will be held on June 11-14. (OSShD http://www.osjd.org/) Shortly, a meeting of the Council of Railway Transport of CIS Member States, Latvia, Lithuania, Estonia, and Bulgaria will be held, where the following issues will be discussed: improving the procedure of use and maintenance of the common wagon and container pool, mutual settlements for the use of wagons and containers, common scientific and technical policy in railway transport, and other matters of the economic activity of the railways of the countries that are members of the Council. Our specialists participated in the drafting of the resolutions to be passed on these and other issues. (http://www.sovetgt.org/)
International Relations
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Th T he re he epr pres esen en nta t tive v so ve off Eesti estii Rau audt dttee ee par arti tiici cipa patte in th he ac a tivi vitty of th he In n te tern r natt io rn o na a l Un Unio o n off R aii lw l w ay ayss (U (UIC U IC C), in nc c lu u ding d i ng g t he h m e e ti ting ng g s off t he e Ge enera ral As ra A se emb blyy of th he Un nio on.. (UIIC w ww ww. w.ui uic. c..org c org ) We contiinue to act ctiv ivvelyy pa part rticip rt t ip ipat ate e in the e acttiv ivitty of of the he Com ommu unity off Euro ope ean Railw lw wayy and d Inf nffrasttruct ctture Com mp pan pan anie es (C CER),, likkewis ew se to o tak akke part in th pa he ev even en nts t held by the Com mmu unityy, in ncl clud udin ing g ge gene era rall as asse semb blilies e . (CE ER www ER w.cer err.b be )
This yea ea Eest ear stti Raud dte t e has s be b en giv ven the he e honou ur to org rg ganise e tth he Session of the OSJD Conference of Ministers,, which h will be held d on o n June 11-14 in Tallinn.
Fro m left Fr l eft ft to t o right:: O Oll eg Moshe she sh shenko he nko – He H e d of Hea o A S E es esti R aud au a u te tee ee Re Repre e e sen s e tat att i on in Mo a Mosco o w, w, Elm E a M ustt o nen n – He H e ad of o f For o eig or eign n Affa fa a irs ir , Ahtt i Asm sm m a nn n – C h ai rman n of o the Ma Man M anage agemen men nt Boa oard - Ge Gene neral Dir Dii ect D cttor, Se S rge ei Fedo dorenko do ko – Memb mber of the mb e Ma anag nagem ement ntt Boa n ard - Traffic Direct cttor att a Ses e ion off R ess Ra a ailway Tr nsp Tra portati a on at ati on Co Counci nci cil in Asgh ci haba ab a bad – th he capi pittal of pi o Turkm rkm kmeni km nistan. ni n.
International Relations
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History
The first railway in Estonia was opened for traffic on October 24, 1870 between Tallinn and Narva. This date marks the birth of Eesti Raudtee. The same year it was connected to the railway St. Petersburg – Warsaw, whereby the link with the current October Railway was established. Due to the Baltic railway, the practically ice-free port of Tallinn started developing fast. In 1877 the Tapa – Tartu railway line was opened, which in 1887 was extended to Valga. Later it was connected to the railway Pechory - Riga, which was then being built. The independent Eesti Raudtee of the Republic of Estonia (EVR) was founded on November 15, 1918 by the directive of the Minister of Transport of the Republic of Estonia. In 1931 a wide-gauge railways on the line Tartu – Pechory was completed, and Estonian ports gained direct access to the central regions of Russia and Ukraine. In 1940 Eesti Raudtee of the Republic of Estonia became part of the USSR railway network.
History
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In 1991, after the Republic of Estonia regained its independence, the previously militarised organisation assumed the functions of the economic transit channel. In January 1992, the state-owned company Eesti Raudtee was founded, which was restructured into a joint-stock company in August 1997. In April 2000 the Estonian Privatisation Agency announced the privatisation of 66 per cent of the shares of AS Eesti Raudtee. On April 30, 2001, the Estonian Privatization Agency entered into an agreement with the winner of the privatisation competition Baltic Rail Services OĂœ (BRS). On August 31, 2001, BRS acquired the qualifying holding in AS Eesti Raudtee. On January 9, 2007, the Republic of Estonia repurchased 66 per cent of shares from BRS at 2.35 million Estonian kroons and again became the sole owner of the company. In summer 2008 Eesti Raudtee moved to a new headquarters in Tallinn at Toompuiestee 35. On January 14, 2009, the entry was made in the commercial register on the division of AS Eesti Raudtee by separation, in the course of which two subsidiaries were founded: AS EVR Infra engaged in the infrastructure management and maintenance and AS EVR Cargo engaged in the carriage of goods. On September 3, 2012, the rights and obligations of AS Eesti Raudtee were transferred to the companies AS EVR Infra and AS EVR Cargo, which continued independent activities. After division, AS EVR Infra assumed the historical business name AS Eesti Raudtee.
History
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About Eesti Raudtee
AS Eesti Raudtee is the largest railway company in Estonia. From September 2012 AS Eesti Raudtee fulfils the role of railway administration, ensuring smooth operation, management and maintenance of the railway infrastructure and efficient traffic management. In addition, Eesti Raudtee is responsible for functioning environment of competition in the carriage of goods as well as passengers.
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Gaug Ga uge ge 15 1520 20//1 20 /152 /152 524 4 mm
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Infr Inf In fras fras asttr truc uct ctu ture e lengt gth th 11 1128 28 km
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Two border d stations i wiith h Russia i (Narva (N -Ivangor I od d-Narva N and d Koidula-Pechory-Pskov) and one with Latvia (Valga- Lugaži)
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The Th e ca capa paci city ity of th the he bo bord rder der statition ion onss is is 38 pa paiirirs irs off tra raiin ins (R ins (Rus ussiia)) and 18 pairs of trains (Latvia) per day
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At 201 At 012 2 al allll ma majjo jor liline jor ness un ne und nde derw derw rwen entt ma en majjo jor re jor repa epa paiirirs irs
Performance indicators
2010
2011
2012*
Freight transport turnover million net-ton-kilometres
6260
6034
4823
Average carriage distance, km
211
198
185
Local transport volume, million tons
4,24
5,42
4,06
International transport volume, million tons
25,38
25,09
22,07
Sales revenue, million euros
62,8
60,2
65,9
Net profit, million euros
13,5
18,8
16,2
Investments, million euros
14,4
56,0
22,9
Owners’ equity, million euros
92,1
108,4
162,9
Financial results
*On September 3, 2012 division of the concern AS Eesti Raudtee took place, in the course of which two independent companies were formed: AS EVR Cargo engaged in the carriage of goods and AS Eesti Raudtee in the infrastructure management and maintenance. As a result of the division assets and liabilities were assigned from the mother enterprise.
About Eesti Raudtee
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Helsin Hel sinki ki 375 km
2724 km
St Pet Pe ersbur Peters ersburg burg ug
80 km m
Yekate Yek aterin ate rinbur rin burg bur g
335 km
Tallinn
S ockh Sto ckholm olm 4388 km
1044 km
Rig R iga
Alm ma atty t
Moscow Mos cow
308 km 620 km
Minsk Mi Min sk sk 1112 km
Ha bur Ham burg g
1525 km
1065 km
Ki v Kie
1494 km
Mun unich ich Odessa Od Ode ssa ss sa a
About Eesti Raudtee
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AS Eesti Raudtee Toompuiestee 35 15073 Tallinn, Estonia phone +372 615 8610 fax +372 615 8710 e-mail raudtee@evr.ee www.evr.ee Representation of AS Eesti Raudtee in Moscow phone 74 959 178 647
inox dm / 2013
fax 70 959 178 761
Why choose Estonia?
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