Valga depot facing bankruptcy over railway dispute

Feb 24, 2000

Speaking from Valga in southeast Estonia, Aare Viira, chairman of the board of AS Kaha, owner of refrigerator car company Kulmvagunite Depoo, said the ban on the traffic of the cars had halted the company's operation and was causing it a loss of 60,000 kroons (about $4,000) daily.

The service of the Valga-based company has been disrupted since Jan. 1 this year, while all of its operations were halted on Feb. 4.

Viira said that apart from financial damage, the events threatened the loss of 300 jobs.

The Valga refrigerated products carrier has turned to the railway board and the competition board for help, and has sent copies of its letters to these two authorities to Transport and Communication Minister Toivo Jurgenson.

Eesti Raudtee on Feb. 4 imposed a temporary ban on the traffic of cars of the Valga depot as a measure to press its claim for the repayment of a debt, which according to the national railway company totals more than four million kroons.

Viira said Estonian Railway in its turn owed the Valga depot over 22 million kroons.

Relations have been tense between the national railway company and the Valga depot since the latter's privatization in 1996.

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