Port of Tallinn decides to
participate in the island ferries procurement
BC, Tallinn,
17.06.2014.
The council of the Estonian state-owned AS Tallinna Sadam
(Port of Tallinn) on Monday, 16.06.2014, approved of participating in the
public procurement for the ferry service operations between Estonia's islands
and the mainland, LETA/Public Broadcasting reports.
The council gave guidelines to the board for the acquisition
or construction of the necessary ferryboats for this and establishing a
subsidiary for the purpose.
According to the government's decision of last week, the
Ministry of Economy will declare a public procurement for operator of ferry
traffic on routes between the mainland and islands of Saaremaa and Hiiumaa in
2016-2025.
"The council of the Port of Tallinn decided to
participate, in line with the decision of the government, in the competition of
operating mainland and islands ship traffic, while ensuring a reasonable rate
of return to the company," said the freshly-elected chairman of the council
of the company Remo Holsmer.
"Based on consultations with shipbuilders, it is
possible to build or acquire the ships required in the procurement during the
time remaining to the beginning of the operating period," said Holsmer.
The Estonian government approved on Thursday at the cabinet
meeting the plan that the Economy and Communications Ministry would announce in
June a procurement for a 10-year operation contract for the Rohuküla-Heltermaa
and Virtsu-Kuivastu routes, at the condition that the participating carriers
have to have suitable ferries (at least 4 vessels) for the routes. The contract
to be concluded with the winner will include the right of the state or
state-owned company to buy out the ships after the contract period ends. The
new contract period begins on October 1, 2016.
Estonian press then wrote that the government's Thursday
decision was a U-turn on the ferry issue, nullifying the efforts of the
previous Minister of Economic Affairs Juhan Parts to save the state millions of
euros a year and end the decades-long state-subsidised reign of businessman
Vyacheslav Leedo in this business. Parts's plan was to buy ferries for the
state, i.e. for Port of Tallinn, and then look for a private company to operate
them. Currently the ferry traffic with the islands is operated by Leedo-owned
Saaremaa Laevakompanii (Saaremaa Shipping Company) who is the only one that has
the four specifically built ferries for the routes.
Economy and Infrastructure Minister Urve Palo said she made
the decision since the time left till the end of Leedo's current contract was
too short for the state to build its own ships.
Minister Palo: Tallinna Sadam is
highly likely to win the procurement
BC, Tallinn,
18.06.2014.
Estonian Economy
Minister Urve Palo, said in Estonian public radio Vikerraadio on Tuesday
that Tallinna Sadam (Port of Tallinn) can win the islands ferry procurement
with a very high probability and it is not right to consider Vyacheslav Leedo a
firm winner in advance, LETA/Public Broadcasting reports.
The Estonian government decided last week that the state
will start looking for an operator for the routes between the mainland and
islands of Saaremaa and Hiiumaa, who could provide the necessary fleet too.
The previous Minister of Economic Affairs, Pro Patria and
Res Publica Party member of Juhan Parts wanted the ships to belong to the state
in the future.
"First of all, I want to emphasize that the ministry
has not given up the idea of acquiring the vessels for the state," Palo
insisted in the interview. "The council of the [fully state-owned]
Tallinna Sadam decided yesterday, following the expectations of the owner, to
announce a procurement to buy the ships. If all goes according to plan, it also
has the opportunity to win the tender, and then find the operator," she
said.
"This way the state can still now acquire these
ships," Palo stressed.
Palo said that due to the tight schedule, she had to make
such a decision. "But the schedule is tight. Figuratively speaking, when I
came to the ministry, the procurement should have been long announced.
Unfortunately, this was not done," said the minister.
"[The previous economy minister] Juhan Parts had seven
years to prepare for this procurement. For a half a year he managed to talk
about it loudly in the society, but did nothing. It is easy to criticise
now," said Palo. "If I had at least three years now, I would have
made a different decision," she added.
Parts said this morning in national television's morning
show "Terevisioon" that lack of time is just an excuse, and
predecessors always seem to be guilty of everything.
"There is enough time. / ... / We have two and a half
years! We live in a very busy world. Two and a half years is a very big
time," he stressed.
Palo said that if building the ships started today, they
could be completed in time, but the state still has to hold the contest that
can be disputed too. "I had to make a decision given the new time
schedule, and because of that I decided that I as the minister have to
guarantee that in 2016, the ferries move at least at today's quality."
The government decided last week that they will start
looking for an operator for the Saaremaa and Hiiumaa routes who would be
required to provide the fleet. Realistically only current operator Vyacheslav
Leedo's Saaremaa Shipping Co has the required ships now.
Tallinna Sadam invests 1.8 mln euros
in Paldiski South Harbour
BC, Tallinn,
17.06.2014.
AS Tallinna Sadam (Port of Tallinn) council approved on
Monday of a 1.8-million-euro investment in deepening the port basin of the North West Estonian Paldiski South Port,
allowing the port to receive bigger ships, with total tonnage of up to 75,000
GT, LETA/Äripäev.ee reports.
The investment is aimed at boosting the competitiveness of
the port, as its turning circle and channel will be deepened from 13.5 meters
to 14.5 meters.
Paldiski South Port handles today mainly ro-ro cargo, scrap
metal, wood, peat, and oil products. Transit and pre-sale service of new cars
meant for neighbouring markets is also an important activity.
AS Tallinna Sadam is fully state-owned, Estonia's largest
complex of cargo and passenger ports. In 2014, it aims at operating income
growth of 8 percent to EUR 111 million, the projected net profit should reach
37 million euros. Expected volume of cargo handled should reach 29 million
tonnes, and the number of passengers passing through the ports of the company
is projected to reach 9.19 million people.
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