Finrail to be separated from VR Group

The State owner will separate Finrail Oy, a company providing traffic control, passenger information and planning services for train traffic, from the VR Group. Finrail is to start its operations as an independent, wholly state-owned commercial company on 1 January 2015. The Government Ownership Steering Department at the Prime Minister's Office will be responsible for Finrail's ownership steering.

The arrangement is implemented because traffic control services must be provided equally to all customers as rail traffic continues to be opened to competition in the near future. The State's strategic interest in Finrail is to ensure an equal provision of rail traffic control services.

"The Finnish Transport Agency, which is responsible for the rail network, is also responsible for traffic control. So far, the Agency has acquired all its rail traffic control services from the VR Group. With the now implemented separation, we will be able to safeguard a level playing field for all parties," says Senior Financial Adviser Jarmo Väisänen from the Government Ownership Steering Department.

"Finrail's services are very important to rail traffic and its competitiveness. We are committed to improving the quality of our services, increasing the effectiveness of our operations and offering our expertise to develop the transport system," says Finrail's CEO Pertti Saarela.

Finrail's annual turnover totals approximately EUR 36 million. The company employs 460 people, most of them working as rail traffic controllers in traffic safety. All employees will continue in the company.

Pertti Saarela will serve as Finrail's CEO. He has held the position since 2013 when the company was set up. Kimmo Mäki has been appointed Chairman of the Board of Directors as of 1 January 2015.

Inquiries: Senior Financial Adviser Jarmo Väisänen, tel. +358 295 160 162, jarmo.vaisanen(at)vnk.fi, Prime Minister’s Office and CEO Pertti Saarela, tel. +358 40 862 0800, pertti.saarela(at)finrail.fi, Finrail