Tallinn Sadam to Construct a New Quay to Service Wind Farms

Source: www.gulfoilandgas.com 6/20/2022, Location: Europe

The supervisory board of AS Tallinna Sadam (hereinafter: Tallinna Sadam) has resolved to invest up to EUR 53 million in Paldiski South Harbour to construct a new 310-meter quay with a 10-hectare area beyond the quay. The European Commission will provide EUR 20 million to the project as part of the military mobility project EstMilMob, which aims to strengthen transport connections to Tapa over the next five years. In summer 2025, the quay and hinterland will be completed.

The new quay with the beyond area to be built in Paldiski South Harbour is necessary not only for military purposes but also to increase the maritime transport capacity of goods and vehicles. Due to the favorable location of Paldiski South Harbour, the construction of the new quay will create preconditions for Tallinna Sadam to become an important partner in the construction and subsequent maintenance of offshore wind farms in the Baltic Sea region. The new quay will ensure the capacity of the port to receive high-draft special-purpose vessels for the construction of offshore wind farms and the transport of wind turbine components. The large rear area beyond the quay allows various preparations for the manufacture and storage of generators and wind turbine blades before being loaded on a ship. In addition, the new quay can be used to service ro-ro vessels if required.

Tallinna Sadam is currently negotiating with several largest European wind farm builders to establish a construction and maintenance port for offshore wind farms of the neighboring region in the Paldiski South Harbour. The wind farms to be built in the area plan to start production in 2028, preceded by a 3-year construction period of the wind farms. The positive impact of the investment on the operating volumes and turnover of Tallinna Sadam is expected from 2025 after the completion of the quay, but as negotiations with developers are still ongoing, it is currently not possible to assess the financial impact on Tallinna Sadam in more detail.

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries O TS Laevad provides ferry services between the Estonian mainland and the largest islands, and O TS Shipping charters its multifunctional vessel Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. The groups sales in 2021 totalled EUR 110 million, adjusted EBITDA EUR 54 million and profit EUR 26 million.


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