The council of Port of Tallinn approved the annual report for the past year

On Tuesday’s meeting the council of AS Tallinna Sadam (Port of Tallinn) approved the economic results of the past year. According to the report, the state-owned company has earned 102.2 million euros of income and 39.6 million euros of net profit. The council was also informed about the preparation process of organization of ferry carriage between the Estonian mainland and the islands as well as about the details of planning for port’s real estate developments.

From the financial standpoint 2013 was very successful for Port of Tallinn – the turnover reached 100 million euros for the first time in company’s history and the profit before taxation of dividends hit the record of 46.4 million euros.

“The best historical result of the company – in terms of both the turnover and the profit – is based on the increased number of passengers, stabilized turnover of goods and growth of the share of activities with higher added value, as well as emergence of a new field of activity related to icebreaker Botnica,” – commented the chairman of the council of Port of Tallinn Mr. Neinar Seli.

In the last year Port of Tallinn has paid the owner (that is the Republic of Estonia) dividends in the amount of 25.3 million euros, plus related tax expenses in the amount of 6.7 million euros. The volume of investments of Port of Tallinn during the last year amounted to 13.4 million euros. The most expensive task was the construction of a new cruise quay in Tallinn’s Old City Harbour (the works will be completed by the beginning of the cruise season this spring).

Along with the approval of the annual report the council was also informed about the process of preparation for organization of ferry service between the mainland Estonia and the islands. The council has received from the management board an overview of the ongoing negotiations with the current vessel operator and has instructed to continue the negotiations. The chairman of the council Neinar Seli also reported that the council has authorized the management board to announce the tender for purchase of up to four ferries after the preliminary agreement on operation of the vessels and conditions of their use is signed with the Ministry of Economic Affairs and Communications.

“According to the council, the aim of organizing ferry communication between the mainland Estonia and the islands should be providing the state with the best result possible, but we should not allow quality of our services to degrade,” added Mr. Seli.

The council of Port of Tallinn has also familiarized itself with the results of the architectural competition for sketches of urban space, organized in order to later initiate detailed planning of the blocks in the northern part of Old City Harbour and on location Uus-Sadama 19.

According to the chairman of the management board of Port of Tallinn Mr. Ain Kaljurand, with regard to both blocks the management board has decided to employ the ideas that received the most points from the jury. “We will be guided by the visions and spatial solutions presented in the sketches. Later, as the owner of the land, we will be able to initiate the respective detailed planning,” said Mr. Kaljurand.

The council of Port of Tallinn has submitted the approved annual report audited by KPMG to the general meeting. The general meeting is to approve dividend payments for this year. The state budget for 2014 provides for dividends paid by Port of Tallinn in the amount of 42 million euros, plus 11.2 million euros of income tax.

For 2014, Port of Tallinn forecasts 8% growth of operational income (that will reach 111 million euros) and the net profit of 37 million euros. The expected growth of turnover of goods is slightly below 2% (reaching 29 million tons), while the number of passengers serviced by the port is to remain on last year’s level of 9.19 million people.

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Additional information:

Neinar Seli, chairman of the council of Port of Tallinn, phone +372 631 8002

Ain Kaljurand, chairman of the management board of Port of Tallinn, phone +372 631 8002