Baltic Rail Services


December 2001 – May 2007




Over 40 million tonnes of freight was carried on Estonian Railways


In 2001, MidEuropa made a direct approach which led to it supporting Baltic Rail Services’ acquisition of a controlling stake in Estonian Railways, the privatised operator of railway infrastructure services and dominant provider of rail cargo transportation in Estonia. At the time of investment, over 40 million tonnes of freight was carried on Estonian Railways’ infrastructure each year, primarily oil products originating in Russia.

MidEuropa saw in the asset substantial scope for efficiency gains through enhancing work practices and equipment rationalisation.

In 2007, following the successful completion of the investment plan and improvement of Estonian Railways’ operating performance, BRS sold its stake to the Republic of Estonia.


Partnership highlights:

  • Assisted in securing long-term financing for a major capex programme 
  • Actively supported management team in the turnaround of the former state company by investing in processes and people, replacing old locomotives and introducing new signalling and traffic control systems
  • Advised on a fuel hedging strategy, which resulted in significant savings


Value creation: 

  • Operational Excellence
  • Organic Growth