New logistics terminal at Sillamäe Port to be completed by year-end

A new container and general goods terminal at the port of Sillamäe on Estonia’s northern coast will be finished by the end of the year, marketing manager of the port company Sillamäe Sadam Andrei Birov said.

The new terminal is built with the vision that in about 5 to 10 years it will be able to handle a million twenty-foot equivalent units (TEU) of containers. Goods flows in the first year of operation are projected at 30 000 to 50 000 TEU.

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Tallink’s large shareholders may earn 200 mEUR in dividends

Three Estonian businessmen Enn Pant, Kalev Järvelill and Ain Hanschmidt who are large shareholders in Tallink ferry group through their jointly owned company Linandell  Ltd can take out 200 million euros in dividends, shows the company’s annual report.

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Estonian Air completes financial u-turn

After aggressive cuts in staff, aircraft fleet, flight routes and subsidiaries, the Estonian Air crisis has been turned around, executives said yesterday as Q2 results were released. Still, the company’s future is yet to be determined by a European Commission decision.

 

The national carrier was profitable for the first month in years in June, and second quarter losses, still nearly 1 million euros, were down by 80 percent from the first quarter, ETV reported.

“The other is that we fill our aircraft a little bit better and we have also got a little bit higher revenue per passenger,“ said CEO Jan Palmer, noting a 20 percent increase in sales.

Now that many of the toughest decisions are behind it, Estonian Air says it does not plan to make any more vast changes, such as to ticket prices and destinations, in the near future.

“We have also sold the Estonian Air Regional company. So that’s all gone. But we still have part ownership in a company called Amadeus Estonia and also in the fuel company here at [Tallinn] airport. So we are trying to negotiate about trying to sell these because we don’t need it,“ Palmer said.

Despite the turnaround from former boss Tero Taskila’s grand plan to turn Tallinn into a regional hub, as opposed to more modest aspirations now, the company is actively seeking additional business opportunities, according to supervisory board member Erki Urva.

“We are holding negotiations with very many carriers. At the moment the company has a few aircraft to spare that are not needed for Estonian Air to carry out its flights. One is being used in Lithuania and another is used for charter flights” said Urva.

But the company is not out of the woods yet. After massive financial injections and loans, the Estonian government, in June, submitted a restructuring plan to the European Commission, which may or may not endorse financial aid that has been given.

European Transport Commissioner Siim Kallas said Thursday that there is “still hope“ the commission’s decision will not shut down the company. “I would say there is hope that there will be solutions that will allow air traffic to continue and a recovery from the situation will be made,“ Kallas said.

Source: Estonian Review

Estonian government suggests northeastern towns use EU support to revitalize problem areas

The Estonian Interior Ministry has sent to the government of East-Viru County recommendations on using European Union structural funds of the 2014-2020 period, suggesting regeneration of problem areas of the region’s major towns as one possibility, the daily Eesti Paevaleht says.

The measure called “physical, economic and social revitalization of problem areas” has not been used in Estonia before because elsewhere in Europe it is aimed at regenerating urban areas that have turned into slums. In Estonia such areas can be found in East-Viru County and for that reason the measure was suggested to the local authorities, adviser at the ministry’s regional policy bureau Madis Kaldmae told the paper.

The measure makes it possible to develop social services or infrastructure in a part of a town to keep it fit for living, Kaldmae said. In other parts of Europe the measure has been used to revitalize city centers from which people tend to move out, Eesti Paevaleht says.

Although slumization has decreased over years the county government is paying heightened attention to several urban areas that are losing inhabitants and because of that remain outside the general development of the region, PR adviser at county government Veiko Taluste said, naming the Sompa, Kukruse and Viivikonna districts of Kohtla-Jarve as such areas.

The county government will consider the ministry’s recommendation on Monday.

The City of Narva has already forwarded its position to the ministry, saying that such a priority — revitalizing concrete urban areas — does not suit it and that the emphasis should rather be on developing a regional visitor center and tourism, and public support infrastructure for enterprise.

The mayor of Kohtla-Jarve, Jevgeni Solovjov, said the city has not yet received the ministry’s recommendations so he is not in a position to comment. However, instead of regeneration many vacant and dilapidated houses should simply be pulled down, he added.

In his words, several city districts have become depopulated because jobs have disappeared and people are hardly likely to move back there if there are no new jobs.

It is up to individual cities to decide whether to make use of the measure for which 10 million euros has initially been designated.

Source: BNS via Estonian Review