Tallinna Sadam signs agreement to build logistics complex in Muuga Harbour

Muuga Harbour.
Muuga Harbour. Source: AS Tallinna Sadam

Recently listed state-owned port company AS Tallinna Sadam (Port of Tallinn) have signed a cooperation and a building title agreement with MPG AgroProduction OÜ on the development of an oilseeds processing and logistics complex at Muuga Harbour. The term of the agreements is 99 years, and the total volume of the investment is estimated to be approximately €200 million.

MPG AgroProduction wants to construct the production complex to processing oilseeds on the property of a former coal terminal. The complex will be able to process 1.5 million tons of raw material per year.

The project also involves a superstructure for loading and unloading raw material as well as end products on the quays, and a connection to the railway and road networks, AS Tallinna Sadam told the stock exchange on Friday.

According to Stephen Hackney, who represents of MPG AgroProduction, the company is planning to establish a state-of-the-art oilseeds processing and logistics complex. The company is aiming to complete the project within the next five years, subject to the processing of relevant construction and environmental permits as well as pending confirmations by the local council.  

The raw material to be used would come mostly from North and South America, Europe, and Australia. "If possible, we are planning to also take maximum advantage of oilsees grown in Estonia, such as rapeseed," Hackney said. The finished production will be supplied to countries in Europe, Africa, the Middle East, and Southeast Asia.

Tallinna Sadam: Muuga freight volumes will increase significantly

According to the chief financial officer of Tallinna Sadam, Margus Vihman, the freight volume of Muuga Harbour will increase significantly as a result of the launch of the new oilseeds processing complex to be established by the operator.

"We are glad that we can put the coal terminal property that stood unused for years to good use, and approximately 2.5 million tons of goods will be added to the freight volume of Muuga after the full entering into service of the processing complex."

Seaways, railways, and road transport will be used to move both raw materials and finished products. Some of the production will be shipped along the Rail Baltic route from north to south, with the total volume of production to be transported by train to potentially amount to 500,000 tons per year, Vihman explained.

According to Hackney, the depth of Muuga Harbour as well as the well-functioning transport connections played into the decision to invest here, along with Estonia's attractive investment climate.

The total volume of investments to be made by MPG AgroProduction OÜ in devices and infrastructure amounts to an estimated €200 million. It is expected that approximately 300 jobs will be created directly and another 1,000 indirectly once the complex reaches full capacity.

MPG is an Estonian company founded in 2017 with the express task to set up the processing plant.

Editor: Dario Cavegn

Source: BNS

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