TS Laevad, a subsidiary of the part-state-owned Port of Tallinn (Tallinna Sadam) won the latest tender round, for the period 2026-2033.

Several competitors showed an interest, but none submitted a bid, leaving the way open for TS Laevad to continue to ply the route to 2033, barring any major issues.

Indrek Randveer, CEO of TS Laevad, said: "There won't be a significant change in the service. We will continue to operate between the mainland and the large islands, striving to do so in the best and most sustainable manner."

Over half of the ferry revenues derive from taxpayer, ie. state, support. Last year, with revenues standing at in excess of €36 million, support accounted for over €20 million.

TS Laevad reported profits of nearly €10 million last year, but this figure is in fact projected to fall, following the new tender.

Minister of Regional Affairs Madis Kallas (SDE) said a situation whereby TS Laevad earned the profits it did while still being mostly state-supported was not sustainable.

Speaking to ETV news show "Aktuaalne kaamera" (AK) Kallas said: "The main criticism surrounding the ferry connection between the large islands was the enormous profits the carriers have been making, despite ongoing demands [from them] for ticket price increases and [complaints of] a shortage of support funds."

"Hopefully, we have by now addressed this concern to some extent. The profit margin should not exceed 8 percent," he added.

Randveer said: "The bid made to the state is now such that it should satisfy the state, while on the other hand, it should satisfy Port of Tallinn shareholders."

Saaremaa businesses report being satisfied with the current ferry services, but still desire the bulk of expenses be covered by the state.

Robert Pajussaar, head of a business association on Saaremaa, told AK: "We are not 100 percent satisfied today."

"We certainly want the current prices, which have been set, to not rise under any circumstances. Naturally, we hope that they will become more favorable to us and to our guests. But as a bare minimum, they must remain at the same level," he went on.

From 2033, more environmentally friendly vessels are due to operate between the mainland and the major islands, namely Hiiumaa and, via Muhu, Saaremaa.

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