Minister of Regional and Agricultural Affairs Hendrik Johannes Terras (Eesti 200) said the €450,000 allocation is a necessary measure to ensure operational stability.

"The current situation, in which Elron is unable to provide quality service due to prolonged construction work, regulatory decisions and past government cutbacks, is unsustainable. In such an environment, ticket revenue also suffers — through no fault of Elron's," the minister said.

The allocated funds will allow train service to resume on lines where it had been replaced by buses due to a shortage of drivers. Alongside train drivers, salaries will also be raised for train technicians. The funding for these wage increases will come from the budget originally planned to subsidize the Tartu–Riga rail line, which is now set to launch later than expected.

To find a long-term solution, Terras is convening a meeting with Kristi Talving, director general of the Consumer Protection and Technical Regulatory Authority; Kaido Zimmermann, CEO of Estonian Railways; Minister of Economic Affairs and Industry Erkki Keldo (Reform); Minister of Infrastructure Kuldar Leis (Reform); and Lauri Betlem, CEO of Elron. The aim is to discuss changes to the methodology for setting infrastructure fees in order to provide the rail sector with a stable and predictable operating environment.

Elron's operations have been impacted by rising costs and delays in infrastructure projects. Between 2021 and 2025, infrastructure fees have risen by nearly 50 percent, while service volume has increased by only 12 percent. Payments to infrastructure managers AS Estonian Railways and AS Edelaraudtee now account for more than 45 percent of Elron's operating costs and consume nearly 75 percent of its government operating subsidy. Minister Terras is proposing that the government discuss solutions to the impact of these rising fees during next week's off-site Cabinet meeting in Tartu.

Extensive infrastructure works over the past two years have significantly hindered Elron's ability to provide quality service, leading to a decline in ridership on both the southern (Tallinn–Tartu/Valga/Koidula) and eastern (Tallinn–Rakvere/Narva) routes and resulting in lower ticket revenues.

In addition, prolonged infrastructure works have greatly increased the workload and wage costs for train drivers, as more driver resources are needed to meet state-mandated service levels. Each day, 32 trains depart from Tapa in the eastern and southern directions (10 to Narva, 22 to Tartu), and if each runs just 10 minutes longer than usual, that amounts to roughly 160 additional work hours per month (10 minutes × 32 trains × 30 days ÷ 60 minutes) — the equivalent of one full-time train driver. In reality, the delays tend to be even longer.

Due to falling ticket revenues, the company has already cut controllable costs this year. However, the anticipated overrun in infrastructure fees and the extraordinary wage increases cannot be covered without an increase in government subsidies. Elron had planned to raise train driver wages in 2025, but this was ruled out in the state budget strategy due to cutbacks.

Tartu–Koidula line returns

Elron announced that, following the wage agreement, train service on the Tartu–Koidula line will resume this Friday.

Train connections will also be restored on the Tallinn–Rakvere line, which had been temporarily operated by replacement buses, as well as on parts of the Tallinn–Rapla, Tallinn–Türi, and Tallinn–Tartu routes.

"With the funding received from the Ministry of Regional and Agricultural Affairs, we reached a wage agreement with train drivers that allows us to address the shortage of driver resources caused by large-scale infrastructure works on the Narva, Tartu and Viljandi routes," said Elron CEO Lauri Betlem.

"Infrastructure works have extended the journey times of many departures, meaning we've needed more working hours to operate the same schedule — train drivers are reaching their working time limits more quickly."

Betlem added that the long-term solution is to train a significantly larger number of new drivers. "We are continuously training new train drivers, and the next group will start working on the lines at the beginning of the new year. A new class will begin this fall and is expected to enter service in the second half of next year. Since more train drivers have left this year than usual and the infrastructure works have increased resource needs beyond our original forecasts, we're using additional shifts by current drivers as a short-term solution," said Betlem.

"The completion of infrastructure works on certain routes will also help ease the resource shortage," he added.

On August 22, replacement buses will continue to operate on the Tartu–Koidula, Tallinn–Rakvere, Tallinn–Rapla, Tallinn–Türi and Tallinn–Tartu routes as a temporary measure in case some passengers have not yet received updated information about the changes.

Replacement buses will also continue to serve passengers on select departures in specific segments that were already covered during earlier phases of the infrastructure works — on four early morning and late evening Tallinn–Tartu departures between Tartu and Tamsalu and on two Tallinn–Rakvere departures between Tapa and Rakvere.

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