He says the Baltic state's move to completely privatise its railways in the late 1990s after independence from the Soviet Union was not smart.

"It's hard to give up my dream, but I can't keep this line any longer,"

Taal, 56, told AFP.

"We could have had EU funds to rebuild our railroads. But the EU will not support private railways."

Taal's story symbolises the dearth of passenger trains in this new Baltic European Union member, where trains carry oil but not people.

The rail networks of the three Baltic former Soviet republics which joined the EU on May 1 are very slow, their tracks are wider than in the rest of the bloc, and both neighbouring Lithuania and Latvia are relying on EU investment to modernise their lines.

Estonia, however, the only member of the 25-nation bloc to have completely privatised its railways, no longer has rail connections to the capitals of neighbouring Belarus and Latvia and therefore with the rest of the EU.

And while freight traffic on Estonian railroads has doubled in the past 10 years -- mostly due to trains carrying oil from Russia to Tallinn harbour -- passenger traffic has dropped threefold.

Taal purchased his railway line for the symbolic price of one krooneuros, 0.79 dollars) in 1997, when Estonia started privatising its railways after regaining its independence from the Soviet Union in 1991.

He hoped to restart passenger traffic between the western-Estonian resort Haapsalu and the capital, which was stopped in 1995.

"I wasn't being nostalgic. I think regionally," he said. "2000 people are travelling here every day to work in Tallinn, enough volume for small trains," he said.

"Now they use cars and buses - just think of the pollution."

Taal gave up after he was refused subsidies and financial support to renovate the hundred-year old track. He also tried to sell the railroad back to the state, which refused.

Estonia has 1,026 kilometres (637 miles) of railway lines, 968 kilometres (601 miles) of which is public.

Seventy percent of public railway lines belongs to Eesti Raudtee (Estonian Railways) and 30 percent to Edelaraudtee (South-West Railways). Taal until recently had the longest stretch of privately-owned track.

In 2001, 66 percent of Eesti Raudtee shares were sold to a consortium consisting of US, British and Estonian investors for one billion kroonsmillion euros, 78 million dollars).

And Edelaraudtee was sold to British railways operator GB Railways for 10 million kroons.

"Estonia is unique in the whole Europe, as all its railways are now private-owned," Eve-Ly Luik, counsellor for the railways division of the Estonian economy ministry told AFP.

While 72 million tons of cargo and five million passengers were carried by trains last year, cargo transport accounted for more than 90 percent of railway companies' profit.

But as growth in rail freight has spiralled, railroads have put off their obligation to invest in infrastructure, raising the prospect of accidents, said Juri-Karl Seim, head of the Estonian Railways Administration.

For the second year in the row, the state granted Eesti Raudteed permission to postpone its investment obligations.

Despite demolishing his railway line, Taal still believes trains are more efficient.

"The whole of Europe thinks so, except Estonia," he said.

"We should have a modern railroad and modern passenger trains. But it's all about profit from oil transit," he said.

TERRA.WIRE