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OPERAIL Yearbook 2019

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OPERAIL Yearbook 2019 OPERAIL Yearbook 2019 1 44 Table of contents OPERAIL Yearbook 4 INTRODUCTION 7 Operail in brief 8 Address by the Chairman of the Management Board 2019 10 Certification 11 Sponsorship activity 12 Key results for 2019 14 Top headlines in 2019 16 ABOUT OPERAIL 18 Operating environment and trends in society 21 Operail’s strategy 23 Fundamentals of Operail’s strategy Operail – More Than Railways 25 Description of Operail’s strategy 26 Structure and management of the company 28 Management board 29 Guiding principles 32 Risk management We are an international logistics 36 SERVICE company with the railway at the heart 38 Railway safety 44 Customer relations of our operations. 46 Cyber security 48 Innovation We transport goods, lease out wagons and repair and build railway vehicles. 50 ENVIRONMENTAL IMPACT We have nearly 150 years of 58 EMPLOYEES AND WORKING ENVIRONMENT 60 Employees and working environment experienceand employ 700 people across Estonia. 70 GIVING EVEN MORE TO SOCIETY 72 Contribution to the development of the sector 76 MANAGEMENT REPORT 78 Management report for 2019 79 Executive summary of activities and results for 2019 79 Freight transport 81 Wagon rental market 82 Repair and modernization 83 Economic performance 85 Outlook for 2020 2 3 INTRODUCTIONSISSEJUHATUS 2 Lühidalt Operailist 3 Juhatuse esimehe pöördumine 4 2019. aasta peamised tulemused 5 2019. aasta peamised sündmused 6 Saadud tunnustused 4 5 Beginning of financial year: 1 January 2019 End of financial year: 31 December 2019 Operail in brief Name of company: AS Operail Commercial Register code: 11575850 Registered office: Metalli 3, 10615 Tallinn, Estonia Our business areas Interesting facts about Operail: Telephone: +372 615 7600 E-mail: [email protected] 1. Freight transport We have longstanding experience ● We have three subsidiaries Website: www.operail.com in transporting different groups in Estonia and Finland. of goods by rail, we handle transit Principal activities: organising railway transport goods and carry international ● . Our employees have worked and domestic Estonian freight. for us for an average of 17 years. Management Board: Raul Toomsalu, Paul Priit Lukka . Our locomotives travelled Supervisory Board: Kuldar Leis, Madis Ermo, Peeter Kadarik, 2. Wagon rental ● Our wagons move goods via 2,194,415 kilometres in 2019. Ahti Kuningas (until 01.11.2019) and Indrek Gailan (from 21.11.2019)* the 1,520 mm gauge railway network and successfully service ● . In a shift of 12 hours, our Auditor: AS PricewaterhouseCoopers trade between the People’s wagon inspectors and repair Republic of China and Europe. personnel perform technical inspections on 150-200 3. Construction and repair wagons and can walk up to Our biggest repair unit at 140 kilometres per month. Tapa depot with its more than 135-year-long history is one ● The modernised loco- of the oldest companies in the motives being completed in the region in the field of repair and Tapa depot have over 4,000 maintenance of railway vehicles. welding operations made. Objective: we aim to be an ● . Using multimodal freight engine for implementing new transport service saves over service standards in inter- 50,000 tonnes of carbon national railway logistics. emissions each year (compared to transporting the Vision: we are an international same quantity of goods by road). logistics company with the railway at the heart of our operations. * Operail advisory board as of 01.06.2020: 6 Indrek Gailan, Leon Jankelevitsh, Siret Liivamägi, Tarmo Porgand, Kaido Saar 7 Address by the Chairman of the Management Board ended the year with a profit of this allows our nature to flourish. What about the future? around ten million euros, but on But we are not stopping just yet. the other hand, it was a year full We have undertaken the obli- of ups and downs and tensions. gation to invest in even bigger I am certain that our aims taken The latter was caused due to the environmental preservation and years ago in order to expand the general instability in the world. have entered into agreements services and markets and preserve in order to research the possi- our nature will bring about the We at Operail believe that we bilities to use natural gas and expected results in the near future. are an organisation with an hydrogen as fuel for locomotives. Never before have we been more important place in the world and focused on preserving our beau- especially in Estonia. Every day, 2019 was a massive year for tiful and clean Estonian nature. our work increases safety in traf- investments. The discovery Never before have we emphasised fic and allows all four seasons to of and timing for new services environmental preservation when flourish in Estonia. In our railway and markets will be the key to it comes to new investments as we hub in Tapa, our own people with our success. The prerequisi- have now. And never before have their wits and skills completed tes needed for entering a new we considered the benefits received the new, more fuel-efficient loco- market in Finland were met via environmental preservation. motives Karl and Rudolf. These in 2019. We invested nearly Therefore, I am of the opinion that twins serve as confirmation that 50 million euros in this new our company has a solid vision, engineering in Estonia can and area. Most of the investment we have committed personnel must be developed further. Why was made for purchasing and we have made rational inco- couldn’t Tapa become one of next-generation locomotives. me-bearing decisions. Please the hubs of machine building in take the time to read our year- Estonia in the future? Whatever In the last year, we made the book and you will be certain of it. the case, we have planted the decision to use as little paper seeds. Our multimodal routes as possible in the future. As of I wish to extend my regards to between Tartu and Tallinn and now, we have entered into an all the people of our company! Sillamäe serve as clear proof that agreement with an internatio- This is our first ever yearbook. our journey. It is our blessing to we care about the environment nal IT development company To our clients, partners and stake- Dear reader, When we, with our collective, acknowledge that we have been and about safety. There were in order to render our activities holders – our heartfelt thanks! started the reorganisation of cared for and there is faith in us. countless naysayers and scep- paper-free. The amount of the a company which is incredibly While the journey is endless, the tics, but regardless, in the last investment was an impres- Respectfully, important for Estonia and boasts beginnings have been promising. year, we brought 8,000 lorries’ sive six-figure amount. We will a long-standing history with the worth of goods to the railway invest in the same proportion Raul Toomsalu aim of better adjusting to the Looking back at 2019, on the one from the highway. This was the in order to improve the working changing world in 2016, we could hand, it served as a confirmation exact amount of reducing the risk conditions of our employees. not foresee the exact outcome of to the strategy we chose as we of collisions on the highway, and 8 9 Certification Sponsorship activity successful Estonian compa- nies, compiled by the Äripäev business daily. The year before, Operail placed 490th. ● Operail is among the ten strongest companies in the exporter of the year cate- gory in the business awards handed out by Enterprise Estonia and the Estonian Employers’ Confederation. ● At Estonia’s largest hacka- thon held in Tallinn as part of the JCI World Congress, the Operail team places second Oleg Paltšonok and ● Operail’s multimodal freight with a DAS (Driver Assistant Vassili Prodanets, our welders transport project launched System) solution that gives and engineers, who led our in 2018 to increase domestic locomotive drivers informa- construction of the wagons railway transport receives tion and instructions on what for the armoured train. acclaim as the logistics achieve- gear position, speed and travel ment of 2019 at a competition style to choose to make freight In its sponsorship activity, Operail As a state company, we cannot The HR and Marketing Manager organized by the Äripäev busi- operations even more efficient. proceeds from the principle of distribute support for various of Operail Jane Etverk delive- ness daily’s logistics news and supporting R&D that contribute to community initiatives. We support ring a grant to Janno Õunpuu. the PROLOG supply chain ● The Harju Business and achieving the company’s opera- various projects that advance the association. The multimodal Development Centre chooses ting and financial goals. railway field and projects related freight transport project helps the replica of historical armour- In 2019, we allocated 2,220 euro to railway children. We have taken to save over 8,000 truck ed train, the No. 7 Wabadus, as grant to TalTech’s development a leading role in popularizing the trips per year on the highways, the achievement of the year. fund SA Tallinna Tehnika- profession of railway worker. increasing traffic safety and Four of its wagons were built ülikooli Arengufond to fund a reducing environmental impact at Operail’s Tapa depot. The scholarship for one successful in the logistics sector. authentic looking replica of master’s degree student in the the train built for the national engineering faculty studying ● Operail placed fifth in centenary has separate cars logistics or product development the 2019 instalment of the for medics, machine-gunners, and
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