Tallinna Sadam subsidiary TS Laevad and Road Administration signed an agreement for additional trips and acquiring new ferry for Virtsu-Kuivastu line

In connection with the expected increase in demand on the Virtsu-Kuivastu and Rohuküla-Heltermaa ferry lines in the following years, OÜ TS Laevad, a subsidiary of AS Tallinna Sadam, and the Estonian Road Administration signed an annex to the additional public passenger service agreement with the aim of performing at least 500 additional voyages on the Virtsu-Kuivastu route each year in the period 01.06.2020-30.09.2026. Since it is not possible to make such an additional number of additional voyages with the existing fleet during the peak season, it is necessary to acquire a new additional ferry for the route. According to the agreement, the Road Administration will order additional voyages in 2020-2022 similarly to the summer periods of previous years - additional voyages will be performed by M/S Regula or another suitable ferry available, on condition that the spare vessel can be temporarily provided during the high season. The agreement sets the goal that in the years 2023-2026 additional voyages will be made by a new-built ferry, the fee and other conditions of which will be agreed after TS Laevad conducts a tender for the construction of the ship and the acquisition cost and terms become clear. The Road Administration has the option to refuse to order additional voyages if the parties do not reach an agreement on the service charges, for example if the possible acquisition cost of a new vessel turns out to be too high.

According to the state’s wishes, the vessel must be environmentally friendly, have an ice class and an on-board shop, and can also be used on the Rohuküla-Heltermaa line with low sea level. The total length of a suitable ferry is up to 114m, draft about 3.5m, capacity approximately 300 passengers and 110-120 passenger cars or 8 semi-trailer trucks with a length of 19m. The parameters of the vessel to be acquired have also been negotiated with local communities. TS Laevad plans to organize a tender for the construction of the additional ferry in the second half of 2020 after the completion of the design work.

According to the ferry services agreement with the Estonian Road Administration signed on 11.12.2014, TS Laevad provides ferry services on the Rohuküla-Heltermaa and Virtsu-Kuivastu ferry lines until 30.09.2026. TS Laevad also has the necessary competence in the specialities of operating shipping lines and up-to-date experience in acquiring new ferries.

More detailed impact on the economic activities of Tallinna Sadam Group can be assessed after the cost of the additional volume of the service and the acquisition cost of the new ferry have been determined and an annex to the respective agreement has been concluded with the Road Administration.

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2019 serviced 10.64 million passengers and 19.9 million tons of cargo. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ 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. According to audited financial results, Tallinna Sadam group's sales in 2019 totaled EUR 130.5 million, adjusted EBITDA EUR 74.3 million and net profit EUR 44.4 million.

Additional information:

Marju Zirel

Head of Investor Relations

AS Tallinna Sadam