Estonian shipbuilder signs €110 million contract with Belgium

The Saaremaa-based shipbuilding company Baltic Workboats AS has signed a contract with the Belgian state-owned company DAB Vloot to design and construct an environmentally friendly 80-meter pilot station vessel.
"This contract marks a significant milestone in the history of Estonian shipbuilding and demonstrates that Estonian companies can compete in the most complex international projects," Margus Vanaselja, owner and chairman of the board at Baltic Workboats (BWB), said in a press release. "We particularly value the constructive and flexible approach of the Belgian state in shaping procurement and financing conditions, which take into account both the interests of the client and the capabilities of the builder. This is an excellent example of how public procurement conditions can be negotiated to make them more flexible for medium-sized companies, especially those offering higher quality."
The project is financed according to a payment schedule and completed work serves as collateral for advance payments. "Without the flexible approach of the Belgian state company and the support of Luminor Bank, BWB would not have been able to independently finance such a large project in its initial phase," Vanaselja said.
He added that collaboration with EIS-KredEx is already underway to establish a long-term framework for providing state guarantees for similar large-scale projects. "Such support would level the playing field for Estonian companies compared to other European maritime nations. Currently, these state support measures are limited."
The construction period for the first vessel is 42 months, with 12 months allocated for design. The high-tech pilot station or base vessel will operate in the North Sea and will feature an environmentally friendly diesel-electric hybrid propulsion system. Its unique energy system comprises six Volvo Penta diesel generators with a combined output of 3,750 kW and a 1,130 kWh battery pack. A smart management system will automatically optimize energy usage, reducing CO2 emissions, fuel consumption and maintenance costs.
The project also includes an option to order a second identical vessel, which would increase the total value of the deal to up to €110 million.
"Environmental sustainability was one of the key aspects of this project," added Jüri Taal, a member of BWB's management board. "The vessel is designed to be ready for a future transition to methanol fuel, setting a new standard for the green transformation of the maritime sector."
The vessel is engineered to be seaworthy, as it will serve as a base for smaller pilot boats and must operate in all weather conditions. It is capable of full functionality in wave heights of up to four meters and accommodates 20 crew members and 12 pilots, providing them with modern living and working conditions.
Baltic Workboats AS is an Estonian-owned shipyard based in Saaremaa that produces high-tech workboats for clients worldwide.
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Editor: Marcus Turovski