Tuesday, August 11, 2009

Finnish Rail Freight Down a Third

Transport boss quits
Shipping News Feature

FINLAND - The President of VR Ltd, which runs Finnish Railways' cargo division, unexpectedly resigned on Monday.

Tapio Simos had been a member of VR's board for seven years and there is speculation that suggests a link between the resignation and the announcement of the group’s poor second-quarter results.

According to VR Group’s new caretaker CEO, Mikael Aro, the resignation was Simos’ own decision. Aro will act as president until a replacement is hired.

VR Group posted a loss of 15 million euros for the first half of the year. In addition, freight traffic in the second-quarter was reported down by more than 30 percent from a year earlier. A press release from VR states that this was due to “the restructuring of Finnish heavy industry and the global recession.”