Public transit goes private

TALLINN - Four companies Ð SEBE, Concordia Bus Baltic, SL Bussiliinid and MRP Liinide AS Ð took part in the public transportation tender recently concluded in Tallinn. SL Bussiliinid and MRP Liinide AS were considered the winners.

Turning passenger transportation over to private hands was a part of the strategic plan for the development of public transportation in Tallinn for the year 2001.

The plan also includes abolition of two trolley-bus lines, which closed on Jan. 1, 2001. City Mayor Juri Mois has been consistently promoting the plan, which will eventually abolish Tallinn trolley-bus lines and replace them with buses.

As of the end of 1999, Trammi-ja Trollibussikoondise AS, which runs trolley-buses and streetcars, had 35.6 percent of the public transportation market in Tallinn.

SL Bussiliinid won the tender by offering a per-kilometer rate of 12.8 kroons ($800,000). MRP offered 11.82 kroons.

Finnish-owned SL Bussiliinid hopes to sign the final agreement with Tallinn within a month and start running 12 bus lines and two trolley-bus lines, one-third of all public transport lines, in the summer of 2001.

According to Priit Vilba, Tallinn deputy mayor, the price per kilometer was the decisive factor in choosing the tender winners. "If by any reason we don't sign contracts with the winners, we'll continue talks with the other two companies," he said.

According to Urmas Reigo, head of SL Bussiliinid, the company will provide approximately 200 jobs and bring 90 new buses to Tallinn. "Scania and Volvo buses would best suit local [climate] conditions," Reigo said.

MRP also plans to introduce several new buses. "We'll use our present employees and provide some 15 new jobs," said Rein Vinni, president of MRP Liinide AS. MRP also hopes to sign the five-year agreement within a month.

Reigo mentioned SL Bussiliinid will use three to 10-year-old vehicles. "By entering the Tallinn public transportation market SL Bussiliinid whips up the competition, which means the end of the epoch of old Ikarus-type buses," said Reigo.

"It's quite possible we'll buy the Scania buses assembled in Tartu," said Tuomo Honkanen, president of Savolinja Group, one of the owners of SL Bussiliinid.

Savolinja Group and Connex Finland, also owners of SL Bussiliinid, would not reveal the sum allotted for their Tallinn public transport project.

"The total amount of investments in the project is not yet specified," said Markku Haavisto, president of Connex Finland.

"It would depend upon certain conditions of the agreement to be signed by the end of January," said Reigo.

Connex Finland, a subsidiary of French transport concern Vivendi, has had previous business contacts in Tartu.

Tallinn's strategic transportation plan for 2002 through 2010 will likely be partially supported by a 195 million euro ($207.44 million) loan from the European Bank for Reconstruction and Development, though the deal has yet to be signed.