Terras seeks €4.8 million to maintain public transport

Regional Affairs and Agriculture Minister Hendrik Johannes Terras has asked the government for nearly €4.8 million from its reserve to maintain current bus, train and ferry services through the end of the year, ERR reports.

The ministry estimates that public transport funding will face a €4.779 million shortfall by the end of 2026. Terras attributed the additional need to rising fuel prices following the outbreak of the war in Iran.

Without the extra funding, regional bus services would have to be cut by about one million route kilometres, equivalent to roughly half the annual distance covered by regional routes in Jõgevamaa. Ferry services to the major islands would lose about 3,400 trips, or approximately two months of service. The corresponding reduction in train services would be about the equivalent of one month of operations on the Viljandi route.

The Ministry of Regional Affairs and Agriculture said rapid cuts were also complicated by existing public service contracts. Reducing service volumes requires advance notice, while lower volumes do not reduce all fixed service costs to the same extent.

“Public transport must continue to operate even when external events drive up fuel prices. We have reduced costs and reorganised the route network at the ministry, but the price increase caused by the war in Iran can no longer be covered within the existing budget. That is why I am asking the government reserve for €4.8 million in additional funding,” Terras said.

The ministry said diesel and compressed natural gas prices had the greatest effect on costs. Changes in fuel prices are passed on to the cost of services through indexation in contracts for regional bus and ferry routes.

Fuel prices also affect air transport costs. According to Elron, this year’s €48 million subsidy will not allow the current volume of train services to be maintained through the end of the year.

The ministry said it had already limited cost growth by freezing the volume of regional bus services, reorganising the route network and reducing duplicate departures. In rail transport, departures with low passenger numbers have been cancelled.

“We first looked for savings where they would affect passengers as little as possible. We have now reached the point where further cuts would directly mean fewer connections,” Terras said.

Terras said last autumn that the government had increased public transport base funding for 2026 by €54 million. According to him, an additional €54.74 million had been allocated to provide stable and accessible public transport.

Annual public transport base funding has stood at about €121 million since the coronavirus pandemic, and the ministry has requested additional money from the reserve each year. Including the additional funding, €174 million had been earmarked for public transport in 2026, but the ministry now says that will not be enough.