The railway business has undergone major changes in recent decades, as have we. The future is full of exciting challenges where we need to recognise the opportunities. We believe in a cleaner and safer future and we know that we can play a role in this with our actions.
We are reliable and proactive – we look towards the future together with our clients and we stand for the realisation of innovation. We want to be a responsible and preferred railway partner, offering environmentally friendly, cost-effective and safe logistical and rolling stock-related services.
We strive every day to ensure that our people and goods are in good condition, that the environment is not damaged, and that our carbon footprint is as small as possible.
We are good at our work, we develop the best practices, and we are pioneers in our field. We continue our development.
We dare to take risks and do things differently to provide our clients with the best results. You can be sure about us.
Together, we can achieve the best outcomes - a joint effort is a win for the client, the partner, and for us.
Our decisions are clear, our actions purposeful and consistent, and we are open and transparent as a company.
Operail is a wholly owned Estonian state enterprise. Executive management is carried out by the board of the company, which is appointed by the supervisory board.
The company’s management:
The composition of the Supervisory Board from 1 June 2020:
Chairman of the Supervisory Board: Leon Jankelevitsh
Members of the Supervisory Board: Indrek Gailan, Siret Liivamägi, Tarmo Porgand, Kaido Saar
Previous compositions of the Supervisory Board:
24.05.2020 – Indrek Gailan, Leon Jankelevitsh, Kaido Saar, Tarmo Porgand
20.01.2020 – Indrek Gailan, Kuldar Leis, Madis Ermo
21.11.2019 – Indrek Gailan, Peeter Kadarik, Kuldar Leis, Madis Ermo
10.11.2017 – Ahti Kuningas, Peeter Kadarik, Kuldar Leis, Madis Ermo
22.05.2017 – Ahti Kuningas, Peeter Kadarik, Neeme Jõgi, Madis Ermo
Remuneration of the members of the Supervisory Board
Supervisory Board members who also participate in the work of the Audit Committee are paid additional remuneration in the months of Audit Committee meetings
The main tasks of the Audit Committee include monitoring and analysing the efficiency of risk management and internal control, the process of auditing the financial statements, the independence of the audit firm and the sworn auditor representing the audit firm, and the conformity of their activities with other requirements.
In order to achieve its objectives, the Audit Committee cooperates with the Supervisory Board, the Management Board, internal and external auditors and, if necessary, appropriate experts.
In 2021, Erik Štarkov (Chairman), Indrek Gailan and Leon Jankelevitsh are the members of the Audit Committee.
During the financial year of 2020, nine regular meetings of the Audit Committee were held (2019:8).
The Group’s parent company AS Operail is focused on operating railway freight transportation in Estonia. The subsidiary copmany Operail Holding includes companies managing all the other the business lines of the Group – rolling stock rental (Operail Leasing, Operail Leasing Finland), maitanance and modernisation (Operail Repairs) and freight transportation services in Finland (Operail Finland).
Our people ensure that your freight is transported and arrives at its destination safely, 24 hours a day, seven days a week. We employ 600 people in Estonia and Finland, the largest part of whom (39%) are concentrated in and around Tallinn, 23% in Tapa, and 14% in Narva and its surrounds. In south Estonia – Tartu, Valga, Koidula and nearby stations – there is around 18% of our workforce by proportion and 6% of our group’s employees are located in Finland.
The history of Operail is closely interlinked with the history of the Estonian railway.
The beginning of rail transport in Estonia can be traced to an event that took place on 5 November 1870, with the opening of the first rail connection in Estonia, the Paldiski–Tallinn–Narva–Gatchina line. Later, the network was extended with lines to Valga (1887) and Pärnu (1896). In 1897, a branch line was opened from Mõisaküla to Viljandi, and from there to Paide and the Port of Tallinn.
On 15 November 1918, the Northwest Railway (Looderaudtee), the First Approach Track Association (Esimese Juurdeveoteede Selts), and the field railway sections of the army and maritime fortress provided the basis for the formation of an independent company, Republic of Estonia Railway (Eesti Vabariigi Raudtee), which also offered freight services.
In 1931, a broad-gauge railway line was built from Tartu to Pechory. By 1940, there were 1447 km of public railways in Estonia, of which 772 km were broad-gauge and 675 km narrow-gauge railways.
During the Soviet period, there was a switch from steam engines to locomotives. In 1973, electric train service was opened between Tallinn and Kehra, and work began in Raasiku on a new auxiliary goods station. Work on the first stage of one of the primary bases for Estonian Railway’s transit potential, the port of Muuga, started in 1986. Alongside the construction of the port, the railways were also rebuilt, the new port was connected to the railways, and construction of a second pair of tracks between Tallinn and Tapa was started.
The state-owned Estonian Railways (Eesti Raudtee) was created on 1 January 1992, with the task of managing Estonia’s railways. In 2001, the government decided to sell off 66 per cent of shares in Eesti Raudtee privately, but in 2007, the decision was taken by the state to buy back all privately owned shares.
The year 2007 started very well for Eesti Raudtee. A total of 36 trains were serviced daily, and 4 million tonnes of freight were shipped monthly. The situation changed after the April riots in Tallinn, and as a result of the tense political climate, freight volumes fell by 50 per cent. Since then, the volume of transit traffic through Estonia has been gradually decreasing.
In 2009, Eesti Raudtee was split equally between two subsidiaries. Infrastructure management was handled by AS EVR Infra, and freight transport remained the domain of AS EVR Cargo. On 3 September 2012, AS EVR Cargo was spun off as a separate railway goods transport company and AS EVR Infra took back business name AS Eesti Raudtee.
In 2015, the total volume of freight transported on Eesti Raudtee infrastructure was 15.4 million tonnes, of which 68 per cent was transported by EVR Cargo. Railway freight volumes fell in all Baltic States in 2015. Russia continued to ship its raw materials via its own ports. The competitiveness of Russian transport channels rose on the back of the severely weakened rouble. Freight volumes were also affected by the sanctions imposed on Russia.
In 2016, a significant shift in the supply and demand on the wagon rental market took place. Due to restrictions on Russia’s transport supervision, Russia was forced to remove over 200,000 wagons from service over two years. This resulted in a fall of over ten per cent in the Russian wagon fleet, and there was a deficit of wagons on the market. Changes in the Russian wagon fleet affected the wagon market across the entire 1520 mm broad-gauge railway network, with wagon prices and rental charges rising dramatically.
In the face of the new market conditions, the company changed its strategy. Previously, EVR Cargo had defined itself as a freight transporter. Since 2016, however, EVR Cargo has separately developed its wagon rental and rolling stock repair and maintenance business, and has accordingly changed its company structure.
In 2017, EVR Cargo received permission from the supervisory board to make investments in the purchase of wagons in order to further enhance its wagon rental business. In 2018, the company changed its name and visual identity, both of which stem from the time when the company was part of the Eesti Raudtee group. The company’s new name is AS Operail.
In the same year, we ended a break of almost eight decades in the history of Estonian locomotive construction and presented to the public the first C30-M modernised locomotive completed in Tapa. In 2020, we expanded into a new market when we started servicing freight transport on Finnish railways.
Operail uses five types of wagon for freight transport.
Tank wagons are used to transport various types of liquids, primarily oil and petroleum products within Estonia, but also for liquid chemicals and liquefied gas.Technical data >
Open wagons are wagons that are open at the top and which can carry bulk goods, lumber, metal, and also containers and equipment.Technical data >
Covered wagons are used to transport various types of packaged, finished goods.Technical data >
Hopper wagons are specialised wagons designed to transport bulk commodities. The most commonly used types include grain, fertiliser, and cement hopper wagons.Technical data >
Flat wagons are used primarily to transport containers and irregularly sized equipment. There are many types of flat wagons. Some are specifically designed for container transport, while others are universal flat wagons with wooden floors that allow the transport of equipment and other irregularly sized goods alongside containers.Technical data >
We use four types of locomotives on a daily basis, and our entire fleet over 80 locomotives.
C36-7i locomotives are line locomotives in use in Estonia since 2002, and represent the majority of our fleet. The locomotives were manufactured by the US company General Electric.Technical data >
TEM TMH locomotives are used to pull full-length trains across the border as for station shunting operations. These locomotives have been produced since 2014 in Lithuania at the DEPAS depot.Technical data >
CME3-type locomotives are used for station shunting operations. They were built from 1983 to 1987 in Czechoslovakia at the ČKD factory.Technical data >
The company’s Articles of Association constitute a document that defines, among other aspects, how the company is managed and what areas the company operates in. Shareholder expectations for AS Operail are described here. As per the State Assets Act (RVS), we publish annual reports and interim reports.
In our support activities, we follow the principle of supporting research and development projects that help to achieve Operail’s operational and financial goals. In addition, we prioritise supporting various projects contributing to the progress of the railway industry as well as various activities aimed at railway employees. We wish to be a promoter of railway-related developments and projects as well as the profession of a railway employee.
25.05.2021 we decided to support Eesti Muuseumraudtee MTÜ and build an open passenger wagon at our Tapa depot. The wagon will be put on display in the Estonian Museum Railway. The total cost of the project is 14,920 euros.
06.05.2020 we granted support in the amount of 15,000 euros to Eesti Muuseumraudtee MTÜ to ensure the preservation of the exhibits of railway history.
10.02.2020 we granted support in the amount of 1,960 euros to Endiste Raudteelaste MTÜ to assist in the organisation of a Christmas party for long-time railway employees.
27.05.2019 we granted support in the amount of 2,220 euros to the TalTech Development Fund to grant a master’s studies scholarship to one successful master’s student in Logistics or Product Development and Production Engineering (School of Engineering).
16.05.2018 we granted support in the amount of 3,630 euros to the TalTech Development Fund to grant a master’s studies and professional higher education scholarship to one successful master’s student in Logistics or Product Development and Production Engineering (School of Engineering).
22.05.2017 we granted support in the amount of 3,300 euros to the TalTech Development Fund to grant a master’s studies and professional higher education scholarship to one successful master’s student in Logistics or Product Development and Production Engineering (School of Engineering).
28.11.2016 we granted support in the amount of 2,220 euros to the TalTech Development Fund to grant a master’s studies scholarship to one successful master’s student in Logistics or Product Development and Production Engineering (School of Engineering).
27.05.2016 we granted support in the amount of 2,220 euros to the TalTech Development Fund to grant a master’s studies scholarship to one successful master’s student in Logistics or Product Development and Production Engineering (School of Engineering).