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Economy minister: let Elron roll up its sleeves

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Photo: Andres Haabu / Postimees

As acknowledged by Minister of Economic Affairs Juhan Parts, mistakes were made while launching the new trains; instead of demanding that somebody step down, however, they ought to be granted time to correct these.

Mr Parts thinks diesel trains obtained by New Year would have sufficed for the new schedule, had Elron not failed with planning the rides.

Who decided it was the best solution, for Estonia, to order the two, three and four wagon trains?

In 2007, as I arrived at this ministry, Elektriraudtee said their trains were worn out; the same was claimed by Edelaraudtee, a long time ago. The question arose: what will happen with train traffic as such? Infrastructure was falling apart, the Viljandi line issue was up, the Pärnu line issue is still up.

Then, the programme was settled. A thorough investigation was conducted on how to obtain a flexible train fleet, able to service Estonia for 20, maybe 30 years. The question also arose regarding how to make the costs of the new train fleet bearable for the taxpayer, and, an issue quite neglected right now – competitiveness with other forms of transport.

Talking about the first days of the year, there were minor mistakes made while planning the existing trains. That has given cause for grumbling.

I am not talking about the grumbling over information system – with this, no-one is satisfied, I think, least of all Elron itself. But there has been lots of criticism regarding the new trains, which, to put it mildly, makes me wonder. How was it, the analysis by a scientist: that the sitting angle is worse than in Khrushchev-era trains? Well, give me a break! Our distances aren’t like we could talk of long distance trains. 200 kilometres between stops – this is the regional train. 

It was known, wasn’t it, that some lines come with more passengers? Was it never discussed, back then, to perhaps invest in a couple of longer trains?

But we do have these. The way I understand it: as you add two wagons to four, this is doable. I think this is the key for the rush hour.

The expert referred by you has said, in a newspaper, that the state has made a damaging decision when ordering two-car trains, as their engine is too powerful and these are not needed, actually. We only have one line, the Pärnu-Lelle line, where these fit.

Not true. These two-car trains are the very ones that can flexibly be added, while not travelling full load. But I would not exclude that even this would not be needed. Take the frequency of the trains: these may come in handy around Tallinn, talking about night-time and late departures. I think this kind of a flexible Lego-type play, depending on demand, does provide for the needed optimality for the train fleet.

I think we should talk about the old trains. The yearly operating cost for the old Edelaraudtee trains was larger than the new ones, by about a hundred million kroons (about €6.5m – edit). That’s huge money, considering the overall public transport money. Now, we will save a lot.

Putting this in the larger context: while they say the state is too thick – the state would be too thick when, let me stress, we may afford to ride Khrushchev era scrap iron, and say this makes economic sense. Let the tram be Parts’ but the money belongs not to Juhan Parts, this is taxpayer money that we pay on top of every train traveller.

How much would it cost the state if both Elron’s and Edelaraudtee’s trains would ride at the same time?

Well no one is prohibiting Edelaraudtee from riding trains. But the entire subsidy to Edelaraudtee was €15m a year. If we want them to ride half a year, that’d be €7m. Of Estonian public transport, two-three rides are done by trains. This (passenger train traffic – edit) is very expensive.

While, currently, people pay €10 for a Tallinn-Tartu trip, how much does the state add to that? What’s the actual ticket money?

With Edelaraudtee, it was 22 per cent of ticket income and 78 per cent of subsidy. The 78 per cent, however, includes operations costs of a hundred million kroons i.e. over six million euros. With the new trains, operating costs are so much smaller as to allow for more rides. At the same time, the company will be able to make leasing payments on the new trains.

We will not be pouring extra money, every year, into the Khrushchev era scrap iron, we have a viable trains fleet for the generation to come. 

At the moment, people are having a hard time understanding why the state decided to cancel contract with Edelaraudtee while not all trains have arrived. Why did you not wait till June 1st, when all trains will be here? 

If we had a lot of money, both operators could ride for 20 years. The issue of the shift was under discussions in the summer of 2012, when it was clear when the trains would be arriving. As Elron presented its train schedule and it was known that 13 trains are here, then, counting up the lines and reckoning with the frequency, it became evident it would actually be serviceable.

What, then, went wrong?

I had a look at it... over the first four days, for about ten departures out of 54, more tickets were sold than seats allow. Judging by the seats, eight departures actually had a problem.

The main mistake happened with Rapla-Türi line. The train was actually available and a larger train could have been sent there. That was a little glitch, with planning. People may condemn, people may revile. I think, here, people had the right to be emotional. Had I been a passenger, I probably had said something sour as well.

Counting up the seats of 13 trains, for a line, it is almost in the order of Edelaraudtee. Even so, regarding rush hours some mistakes have been made which need to be corrected fast, this must be done immediately! As soon as possible, don’t wait, roll up your sleeves.

But, talking about the old trains – my heart is at rest, knowing the wasting is finished, which I had to put up with for five years. It’s no joke if an entrepreneur enters the minister’s office and says: double my subsidy or else, starting January 1st, the trains will stand still. Is that private business? This in no private business, friends, this is racket.

Looking at the schedule, I get the impression that Elron is mainly focussed at making ticket money. Rush hour lines are renamed expresses; even so, they will only win a couple of minutes and will not stop at the smaller stations. A state enterprise’s goal ought to be also enhancing regional policy.

I think there is no contradiction here. The train project is nothing but a large regional policy project. Let’s recall the subsidy.

But what do I tell the reader who complains that the express train reaches destination four minutes faster than an ordinary one; but, to get home after work, they need to wait an hour and a half for the ordinary one?

To this, Elron must surely provide an adequate answer. Right now, all such remarks are relevant. Elron visited with all county governments, various issues remained unsolved.

Last year, the Edelaraudtee owner Marcel Vichmann claimed that Elron ordered too many trains, of which some will be standing in the depot. What do you think: did Elron do prudently?

When governmental cabinet discussed this, in 2009, variant B was also proposed: ten new trains. But 20 new trains means increase of train passengers in public transport. The increase will not be administrative; the increase can only come as the service and ticket price are such as to make people ride.

Right now, the bus company Sebe can offer more comfortable service, on Tallinn-Tartu line, than the state subsidised Elron.

Elron has not even begun yet. Over these five days, the greatest train patriot, when reading these headlines, will stay at home – this is like the blizzard in USA. This, for the company, is a great challenge, a heavy blow to their planned increase of passengers. Will the comely «carrot» (as the trains have been Christened, by people – edit) serve to ease that? The greatest communication manoeuvre is the very train. That’s what makes it or breaks it.

Who and what went wrong so the new trains‘ arrival became not a national celebration, rather a storm of displeasure?

With this switch, the opponents were very concrete; even so, this is not to excuse Elron. Being aware of that, they should have performed an absolutely perfect switch, preventing the possibility to present as criticism the claim that the next seat comes after 30 centimetres.

No one has explained to the common man, why these very trains were the best choice...

You are the first journalist who comes and asks. I have a heap of things, you know, I would like to explain to the entire Estonian nation, but we do not have our own newspaper, our own TV. But don’t you conclude now that I’m dreaming of a state newspaper!

Elron actually worked hard. I am convinced they were optimistic that all would work. This was a dedicated bunch. Which run into some bad luck.

No, they say I’m defending them. Not at all. Why should I defend Elron? They have grown-up people on the board, they must take responsibility. There are different people. There are those who ought to be sacked at once, and this has also been done. But the people who were dedicated and who worked hard, they are taking it hard themselves... and, you wait and see, they’ll get this stuff fixed.

Right now, the people are demanding your head. Will you step down?

Let the people first revile me a little. I am always ready to step down, only for a cause. Giving the railway back to the Estonian people, so it would last some 20 years more, I would not want to step back over that. Should I launch into bona-fide state capitalism like municipal shops, then surely [it would be time for stepping down – edit]. But not for these things. Here, the critics and opponents ought to invent something else. 

Will there be  some kind of change, at the Elron management?

Depends on how things go. If things get fixed, it was a good stress test. If things get it fixed, they’re overcomers indeed. If not, then let’s see.

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