TALLINN - Estonian Railways subsidiary EVR Infra AS has signed a contract with railroad operator E.R.S. AS, which locks in its fees for the use of the railway infrastructure for the next three years, reports news agency LETA.
Estonian Railways CEO Kaido Simmermann said that the contract for the three year period guarantees the operator long term stability in prices.
He notes that with annual cargo volumes of 5-8 million tons, E.R.S. AS, with this agreed pricing, "will benefit from the long-term contract and can count on using the infrastructure at several dozen percent more favorable prices than the base tariff."
Lower transport costs should help all along the delivery supply chain, "allowing operators to drop long-term fixed prices to their customers, with significant discounts at large guaranteed freight volumes, and increasing competitiveness should result in the local region," says Simmermann.
Estonian Railways' cargo transport subsidiary, EVR Cargo AS, is also expected to soon conclude a similar contract for use of the infrastructure.
