Port of Tallinn to build quay in Paldiski to transport military equipment
Port of Tallinn (Tallinna Sadam) is constructing a new quay in Paldiski with the support of the European Union funds, which improves the transport of military equipment and creates opportunities for the wind farm construction. The cost of the project could reach up to €56 million.
According to a news release, AS Tallinna Sadam has signed a contract with Akciju Sabiedriba BMGS Estonia division and Insenerehituse AS for the design and construction at the Paldiski Lõunasadam (Paldiski South Harbor) of the multipurpose quay No. 6A and its surrounding area.
The contract's value at the time of award is €53,2 million, with the possibility of increasing to €55,9 million if the contract's indexation provision is used. The quay and surrounding grounds are slated to be completed by July 2025.
The European Commission will contribute €20 million to the investment through the EstMilMob military mobility initiative, which aims to improve Tapa's transportation linkages over the next five years.
The remaining investment costs will be financed by loans and company contributions. The additional loan amount for the project will range from €20 million to €27 million, and Port of Tallinn intends to maintain its dividend policy throughout the investment period.
According to the press release, the new quay and back-land to be constructed at the Paldiski South Harbor are necessary to enhance the port's capacity for maritime transport of goods and vehicles, including for military purposes.
The construction of the new quay will allow the Port of Tallinn to become an essential partner in the construction and subsequent maintenance of offshore wind farms in the Baltic Sea, the press release states.
Valdo Kalm, chair of the board of the Port of Tallinn, said that the new quay will boost the port's capacity to accommodate special-purpose vessels with deep drafts for the transit of wind turbine components and the construction of offshore wind farms.
"Before loading generators and wind turbines on the ship a range of tasks could be performed in the expansive bacl-land. Wind farm-related industrial and manufacturing facilities can be built on a 40-hectare open area surrounding the new facility. There is an internal road network that interconnects the location of the new quay. Furthermore, if necessary, the new port could handle ro-ro vessels as well," Kalm explained.
"To date, we have signed memorandums of understanding with four offshore wind farm development or construction firms. After a three-year building period, the wind farms in the region are expected to begin producing energy in 2028," he said.
The completion of the quay in 2025 is anticipated to have a positive influence on earnings of the Port of Tallinn. However, because negotiations with the developers are still underway, a more detailed estimate of the financial impact on the Port of Tallinn cannot be made at this time.
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Editor: Mait Ots, Kristina Kersa