Port of Tallinn dividends and income tax reach 57 million euros

Port of Tallinn council confirmed at today’s meeting the financial results for last year that enable the company to pay to the state an all-time record dividend income and dividend income tax of close to 57 million euros.

According to audited data, Port of Tallinn turnover last year was 89.2 million euros and profit after tax was 36.4 million euros. Compared to 2010, the company’s turnover increased by 2.4 million euros or 3%; Port of Tallinn has never seen such large revenue in any previous years.

According to Port of Tallinn council chairman Neinar Seli, the company achieved positive results mainly due to the optimization of internal work arrangement and the enhanced cost savings. “When setting operator fees, we have tried to be as flexible as possible, considering the general world market status, in order to ensure the maximum development and investment capabilities for the operators,” he emphasized.

“The council commended the results achieved – Port of Tallinn has risen among one of the most profitable state enterprises that brings in dividend income, providing close to a third of the state’s ownership income and is still one of the most successful ports when compared to the other ports on the Baltic Sea,” noted Seli.

“The port’s development from now on will depend on several factors. First there is the timely completion of projects already underway. Examples might include the continuation of the construction of Muuga’s new container terminal super structure by the company Rail Garant that started this January and is supposed to be ready by the first quarter of next year. In March, Port of Tallinn also signed a cooperation agreement with one of the world’s biggest logistics companies Katoen Natie to develop a warehouse complex in the Muuga Industrial Park the construction of which should start in the second part of this year. The arrival of a company the scale of Katoen Natie as one of the so-called “anchor clients” in the Muuga Industrial Park will most likely make other storage, logistics or production companies planning to enter the Baltic Sea region consider Port of Tallinn as their location.

However, one must take into account that the port’s development depends ever more on external factors as well, such as the engagement and cooperation of local administrations – even now several major projects have ran aground due to the indecision or unwillingness of local administrations,” noted Seli. “The loss of time in implementing new developments could later hit us hard, because the speed of implementation for a project and the adherence to schedules plays a significant role in the competition among ports and excessive dithering might mean that a potential investor can always choose a competitor in this region,” emphasized Seli.

“We also hope that the positive trend in the train traffic between St. Petersburg and Tallinn will also continue in the future and the problems caused by the recently changed passport procedures will eventually be solved so that the route that opened less than a year ago – but has already brought thousands of new tourists to Tallinn – will be sustainable and continue heady development,” said Seli.

A record number of 8.48 million passengers passed through the ports under the management of Port of Tallinn last year and this number grew by 0.56 million passengers or 7% compared to last year. The company’s cargo volume was at 36.5 million tons, a decrease of 0.2 million tons or –0.5% compared to 2010. The cargo volume only decreased for timber cargo and grew in other cargo types.   

Port of Tallinn is the Baltic Sea’s largest complex of cargo and passenger ports. Port of Tallinn consists of five harbors: the Old City Harbor, Muuga Harbor, Paldiski South Harbor, Paljassaare Harbor and Saaremaa Harbor. The state company Port of Tallinn was formed in April of 1992; in 1996 the company was changed into a stock company with the sole shareholder being the Republic of Estonia.