An operating licence is required if an undertaking wishes to operate in the railway sector and provide the following services:
- management of public railway infrastructure;
- rail transport of passengers;
- rail transport of goods.
Activity licences are valid indefinitely and are issued by the Competition Authority.
An undertaking does not need to hold an operating licence to operate in the aforementioned areas of activity if it holds a certificate classifying it as an entity in charge of maintenance pursuant to Article 42(3) of the Railways Act.
Throughout the period of validity of the aforementioned licences, the licence holder must have liability insurance covering damage caused by the non-performance or improper performance of their obligations in accordance with the Railways Act and international agreements.
An operating licence for rail transport is not required if engagement in rail transport is not the railway undertaking’s principal area of activity. Rail transport is not the railway undertaking’s principal area of activity, if the said undertaking is a railway infrastructure manager engaged in rail transport only for the purpose of railway infrastructure management.
Legal bases
The activities of railway undertakings are regulated by the:
Requirements for an applicant
To obtain an operating licence, an undertaking must meet the following requirements:
- the criminal records database contains no convictions for criminal offences in the first degree, economic criminal offences, criminal official misconduct or the criminal offences specified in Sections 422, 423, 4232 and 425 of the Penal Code concerning the sole proprietor, company, members of the company’s management board or other persons entitled to manage the company;
- the criminal records database contains no convictions for misdemeanours provided in this Act, the Merchant Shipping Act, the Maritime Safety Act, the Road Transport Act, the Public Transport Act, the Employment Contracts Act or the Occupational Health and Safety Act where the maximum penalty established for this misdemeanour has been imposed, or the requirements under any of these Acts have been repeatedly violated, as concerns the sole proprietor, company, members of the company’s management board or other persons entitled to manage the company;
- the criminal records database contains no information concerning the sole proprietor, company, members of the company’s management board or other persons entitled to manage the company regarding convictions for misdemeanours provided in the Customs Act where the maximum penalty established for this misdemeanour has been imposed, or the requirements under the Customs Act have been repeatedly violated, if the applicant for the licence wishes to engage in cross-border activities subject to customs procedures;
- the sole proprietor, company, members of the company’s management board or other persons entitled to manage the company are not bankrupt within the meaning of Article 8 of the Bankruptcy Act;
- the sole proprietor, company, members of the company’s management board or other persons entitled to manage the company comply with the good-repute requirements specified in Article 19 of Directive 2012/34/EU of the European Parliament and of the Council establishing a single European railway area (OJ L 343, 14.12.2012, p. 32-77);
- if it is a third-country undertaking, it is registered in the commercial register of a state that is party to the EEA Agreement;
- the sole proprietor, members of the company’s management board or other persons entitled to manage the company who are responsible for the management of public railway infrastructure, the transport of goods or the transport of passengers on public railways have sufficient professional knowledge and experience to ensure the safe operation of the undertaking and the reliable organisation and monitoring of its operation;
- the undertaking is able to fulfil its actual and potential financial obligations for a period of at least 12 consecutive months, and the undertaking has no major or repeated tax arrears that could call its financial capability into question.
Recognising a foreign professional qualification
A person having acquired a foreign professional qualification may also operate as a competent person if their professional qualification is recognised in Estonia.
You can find more information on recognising professional qualifications from the website of the Estonian ENIC/NARIC.
For the recognition of professional qualifications and more information, contact the Consumer Protection and Technical Regulatory Authority.
Cross-border operation
A foreign railway undertaking or association of railway undertakings of a foreign state need not apply for an operating licence for engagement in rail transport in Estonia if the undertaking or association holds a corresponding licence issued by the foreign state, and Estonia and the foreign state have agreed on mutual recognition of operating licences. Operating licences issued in other member states of the European Union are deemed to be valid in the Republic of Estonia. A railway undertaking or association of railway undertakings of a foreign state, including a member state of the European Union, shall apply to the Technical Surveillance Authority for part B of the safety certificate for engagement in rail transport in Estonia if a safety authority of another member state has issued part A of the safety certificate thereto.
If an undertaking holds an operating licence for the operating of public railway infrastructure in another State that is a Contracting Party to the European Economic Area (hereinafter EEA) Agreement, which by its subject of review predominantly corresponds to the Estonian operation licence and if its validity has not been confined to a territory or place of business situated outside Estonia, then such undertaking does not need a separate licence for railway infrastructure operation activity in Estonia. In such case, the foreign undertaking shall submit an application to the Competition Authority for exemption from the authorisation obligation, which contains the following information:
- in the case of a sole proprietor, the name, personal identification code, in the absence thereof the date of birth, and business name upon the existence thereof, in the case of an undertaking which is a legal person, the business name and registry code;
- address of the seat of the undertaking;
- contact details of the undertaking (phone number, postal address and e-mail address);
- name of the authority that has granted the authorisation and the date of issue of the latter.
If an Estonian undertaking holds operation licence for rail transport passengers, rail transport of goods and operation of public railway infrastructure, wishes to provide these services in another EEA state, it is recommended to contact relevant economic authority in that state with an inquiry prior to commencement of activity or applying for exemption from the authorisation obligation, as the procedure rules may differ from country to country.
Information on activities in other EEA states can be found in the Point of Single Contact of respective country.
Filling in and submitting the application
Together with the licence application the data required by virtue of section 19 of the General Part of the Code of Economic Activities Act, the following documents are to be submitted to the Competition Authority:
- a copy of the interim accounts as at the end of the month prior to submission of the application if an annual report does not exist or if the annual report submitted has been prepared and approved more than six months prior to submission of the application;
- a list of the members of the management board or, of the persons who have the right to manage the company which shall set out the given names and surnames of the persons, their personal identification codes (or, in the absence thereof, the date of birth), residences, information concerning their education and professional experience, their recent places of work or service, and documents concerning the compliance of these persons with the established requirements.
A railway undertaking has to enter into a liability insurance contract pursuant to sections 17-20 of the Railways Act. For operating it is required to hold an operational safety licence or a certificate issued by the Technical Surveillance Authority.
NB! Prior to the submission of the application, an undertaking pays the state fee at the rate provided for in the State Fees Act.
Application can be submitted:
- by entering the Register of Economic Activities (authentication is required);
- by sending the digitally signed application to the e-mail address [email protected];
- by sending the application via mail to the address of the Competition Authority: Tatari 39, Tallinn 10134.
Payment of the state fee
The state fee to be paid for adjudication of the licence application depends on the type of licence as follows:
- 1920 euros for management of railway infrastructure;
- 1920 euros or the provision of rail transport services for passengers;
- 3840 euros for the provision of rail transport services for goods.
The state fees are paid to the bank account of the Ministry of Finance, with the reference number of 2900080076:
- Swedbank – EE932200221023778606
- SEB – EE891010220034796011
- Luminor – EE701700017001577198
Processing the application
The Competition Authority submits a preliminary reply to the applicant within three working days as of receipt of application from the undertaking, which, among other, contains information on the date of commencement of the period of validity of the license and the deadline for processing the application.
The Competition Authority adjudicates the applications for licence by issuance or refusal to issue the licence within 30 days as of submission of all required data. If an undertaking fails to submit all the required information in its application, the Competition Authority notifies the undertaking thereof no later than on the working day following the day of detecting such failure, determining a reasonable time limit for remedy of the deficiency. If the undertaking still fails to submit sufficient information, the Authority may not adjudicate the application.
In case of necessity, the Authority may suspend the adjudication time limit for 30 days or prolong it for up to 30 days.
The operating licence is granted for an unspecified term, unless the undertaking himself applies for a limit on the validity.
The Competition Authority issues licence in an electronic format.
Suspension of the operating licence and renouncement of economic activity
The Competition Authority may suspend an operating licence for up to 6 months or re-request information from the undertaking proving compliance with the requirements specified in Section 13(1) of the Railways Act if the undertaking has not operated in the area of activity specified in the operating licence for 6 consecutive months or has not commenced the operation authorised by the operating licence within 6 months of being granted the licence.
A railway undertaking may apply to the Competition Authority for a period exceeding the term specified in Article 16(2) of the Railways Act for commencement of its operations if these operations cannot be started earlier due to the specific nature of the services to be rendered.
In order to ensure provision of services, the Competition Authority may issue a temporary operating licence to an IM/RU whose operating licence has been revoked due to the failure to comply with the requirement under Article13(1)(8) of the Railways Act. A temporary operating licence will be issued for up to 6 months following the date on which the operating licence is revoked. During this period, the railway undertaking must continue its operations under the conditions and to the extent set out in the temporary operating licence.
A duly justified application can be submitted to the Competition Authority:
- via the Register of Economic Activities (use of the service requires authentication);
- digitally signed to the e-mail address [email protected];
- by mail to the Competition Authority at Tatari 39, Tallinn 10134.
Revocation of the activity licence
A licence is revoked on the following bases:
- intentional submission of incorrect information by an undertaking upon application for a licence, which affected the grant of a licence, provided that if such information had not been submitted, the grant of an licence would have been denied;
- renouncement of economic activities by an undertaking;
- validity of a relevant prohibition on economic activities imposed by a court judgment or arising from law in a relevant area of activity in respect of an undertaking, except for validity of a prohibition on economic activities imposed pursuant to the General Part of the Economic Activities Code Act.
The licence may be revoked on the following bases:
- failure to commence economic activities within two years after issue of the authorisation or failure to pursue economic activities within two years, and in the case of provision of services of general interest, failure to commence economic activities within 12 months after issue of the authorisation or failure to pursue economic activities within 12 months or failure to commence economic activities within the term prescribed by an ancillary condition of the licence;
- material violation of an economic activity requirement in the subject of review of the licence or ancillary condition of the licence;
- a significant damage or danger caused to public order by the activity permitted by the licence, which did not exist or was not known at the time of grant of the licence and which overrides the interest of the undertaking in continuing the activity and which cannot be eliminated by amendment of the licence;
- amendment of the ancillary conditions of the licence.
In addition, the Competition Authority may revoke the operating licence in case, if the undertaking violates the obligations arising from international agreements, as a result of which persons, property or the environment could be endangered, or international rail transport could be suspended.
A licence is revoked as of communication or delivery of the revocation decision to the undertaking.
Supervision
The refusal to grant an operating licence, suspension, termination and revocation of operating licences of the railways sector is authorised by law to the Estonian Competition Authority.
Contact details
Substantive information
Tiina Maldre, Competition Authority, tel: +372 667 2573, e-mail: [email protected]
Registry information and technical questions
Register of Economic Activities, tel: +372 668 7080, e-mail: [email protected]