• Home
  • News
  • Tallinna Sadam comments regarding COVID-19 impact to its operations and results
  • 2020 March 25 16:22

    Tallinna Sadam comments regarding COVID-19 impact to its operations and results

    In the context of the COVID-19 pandemic, various measures have been established in European countries to prevent the spread of the virus. Among others, Estonia and Finland have both proclaimed state of emergency and closed the borders for foreign nationals’ entrance. Passenger traffic between Estonia and Finland is only allowed for returning citizens or in certain special cases. There are no national restrictions on freight transport. Due to the decline in demand related to the restrictions, passenger operators have made several adjustments to their schedules.

    The following information is subject to change at any time and is not intended to be a long-term guidance.

    Today, there are daily trips on the Tallinn-Helsinki route served by Tallink’s M/S Megastar (three visits per day), Viking Line’s vessel M/S Viking XPRS (one visit per day) and Eckerö Line’s vessel M/S Finlandia (three visits per day). Compared to the pre-pandemic period, the route has an average of five ship calls per day less. Tallink’s ships M/S Silja Europa, which previously made one call per day and M/S Star, which previously made three calls per day, are away from the line. Viking Line’s M/S Viking XPRS has reduced the number of calls from two per day to one. In addition to the significant decrease in the number of ship calls, the number of passengers on the Tallinn-Helsinki route has decreased by almost half in March.

    Due to the temporarily restored border control procedures, Tallink’s vessel M/S Sea Wind serving the Muuga-Vuosaari line departs from Tallinn Old City Harbor with the same frequency (two visits per day) but has temporarily stopped serving passengers and carries only freight. Eckerö Line’s M/S Finbo Cargo is temporarily away from the line due to maintenance work and is expected to continue to carry freight on the line from 6 April 2020.

    Tallinn-Stockholm line is temporarily closed as of 15 March, which means cancellation of one ship call per day. The freight of the line is diverted to Paldiski-Kapellskär line, which is served by Tallink’s ship M/S Regal Star.

    In connection with the queues at the Polish border and to ensure the operation of road transport, a new line Paldiski-Sassnitz (from Estonia to Germany) has been opened for freight traffic and passengers with vehicles from 19 March to 18 April served by Tallink’s M/S Star, which previously sailed on Tallinn-Helsinki line. The vessel is scheduled to visit Paldiski South Harbor three times a week.

    The ban on cruise ship calls until 1 May directly concerns the cancellation of four scheduled ship calls. As of today, cruise companies have also informed us of cancellations of few other calls scheduled for May but given the global evolution of the COVID-19 pandemic, we anticipate that there will be many cancellations this cruise season. The ban on cruise ship calls also applies to Moby SPL M/S Princess Anastasia sailing on the St. Petersburg-Helsinki-Tallinn-Stockholm-Helsinki-St. Petersburg line, which was originally planned to start traffic in early April and make one ship call per week to Tallinn Old City Harbour.

    There are no significant changes in the schedules of regular freight lines vessels (containers and ro-ro) due to COVID-19 and voyages continue as before the crisis. Also, there has been no significant change in bulk cargo handling. Therefore, the COVID-19 pandemic has so far not had a significant impact on the revenue of the Cargo Harbours segment of Tallinna Sadam.

    As freight and related ship calls continue, the COVID-19 pandemic and restrictions to prevent it have so far mainly reduced the number of passengers and ship calls of Tallinn Old City Harbour, a Passenger Harbours segment of Tallinna Sadam. In the Passenger Harbours segment, the decrease in the number of passengers will reduce the revenue from passenger charges and decrease in the number of ship calls will reduce the revenue from vessel charges.

    The domestic ferry lines of Saaremaa and Hiiumaa operated by TS Laevad, a subsidiary of Tallinna Sadam, will continue to operate on a sparse schedule in order to ensure the island residents’ return home and continuity of cargo traffic. The management estimates that the changes resulting from the restrictions will not have a significant impact on Tallinna Sadam, as the fixed fee, which is irrespective of the number of voyages, stipulated in the ferry agreement covers all fixed costs of the vessels and their operations (including salaries of the crew) and ensures planned profitability.

    The multifunctional icebreaker Botnica, operated by TS Shipping, a subsidiary of the Port of Tallinn, will continue providing the regular icebreaking service to the Estonian Maritime Administration until 20 April 2020. Baffinland Iron Mines Corporation’s contract for summer work in Northern Canada continues to be valid. So far, Botnica’s operations and revenues have not been affected by the COVID-19 pandemic.

    The national measures taken by the states to prevent COVID-19 are constantly being updated and changed and the situation is changing on daily basis. The management estimates that the impact of the COVID-19 pandemic on Tallinna Sadam will be significant due to passenger traffic disruptions and the general economic downturn following the disruption of the virus, but the extent and duration of this impact cannot be objectively estimated at this point. In order to compensate for the decrease in revenues, we will critically review all the Group’s expenses in the changed circumstances, but due to the high proportion of fixed costs, the decline in the profitability of the Group is unavoidable, especially in the Passenger Harbours segment. To improve the cash flow of the company, we review and, if necessary, re-evaluate all planned investments and postpone them whenever possible. At the time being, the Group does not intend to suspend investments already in progress.

    Tallinna Sadam shall take the necessary measures and cooperate fully with the authorities to achieve a common global goal of preventing the spread of the virus and protecting human life and health. We have made several changes to work processes to ensure the continuity of the service. Office workers work in the home office during the spread of the virus. The work of operational staff has been reorganized to minimize contact with each other and outsiders. Personal protective equipment is provided to all frontline personnel.

    Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2019 serviced 10.64 million passengers and 19.9 million tons of cargo. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. According to unaudited financial results, Tallinna Sadam group’s sales in 2019 totaled EUR 130.5 million, adjusted EBITDA EUR 74.3 million and net profit EUR 44.4 million.

2021 October 24

15:18 Carnival Cruise Line christens Mardi Gras
14:31 TenneT's Hollandse Kust (noord) jacket ready to set sail
13:48 Jonathan Lord MP visits Petrofac to discuss hydrogen technology in woking
13:24 CDWE signs ECA for the provision of pin piles with EEW for Hailong project
12:51 Prosafe SE: Prosafe awarded 2022 contract by TotalEnergies
12:31 FMD names Robert Starr Chief Financial Officer
11:08 Holland America Line's Rotterdam is on maiden voyage from Amsterdam to Florida for inaugural Caribbean season

2021 October 23

14:32 Viking begins sailing from Port Everglades for 2021-2022 winter season
13:12 Maritime NZ launches latest No Excuses on-water boating safety campaign
12:41 Governor Ron DeSantis: Florida’s seaports are open and ready to meet holiday demands
11:34 Ecochlor appoints Andrew Marshall as CEO
10:49 USCG interdicts 3 lanchas illegally fishing US waters

2021 October 22

18:01 RS provides the designers with a tool for automated check of hull structures
17:40 IADC supports 5th International Congress “Hydraulic Engineering Structures and Dredging” as its Partner
17:15 EXMAR and LATTICE announce joint development of CO2 carrier
16:27 Cargo traffic within Azov-Don Basin of Russia’s IWWs fell by 12% in 10M’21
16:04 COSCO SHIPPING Ports and Silk Road Fund agree to establish cooperative strategic relationship
15:12 Port of Salalah partners with Maersk to launch a new end-to-end logistics service to Yemen through the Al-Mazyunah free zone
14:58 Marine Recruiting Agency trained 38% more people in 9M'2021
14:22 North Sea Port makes up for pandemic losses step by step in the first nine months of 2021
13:22 Bollinger Shipyards delivers 46th fast response cutter ahead of schedule despite direct hit from hurricane Ida
12:32 Port of Los Angeles reduces net air pollution during pandemic year
12:28 Navigation season officially closed in Lena Basin of RF IWW
12:01 GTT is selected by Samsung Heavy Industries to design the fuel tanks for six new LNG-fueled mid-size container vessels
11:49 Austal Australia delivers 13th Guardian-class Patrol Boat
11:22 Hyundai Heavy Industries awards no objection letter to Gazpromneft Ocean oils
10:21 Singapore crowned as the “Best Global Seaport” for the first time and won "Best Seaport in Asia" for the 33rd time
10:11 Delegation of MOL shipbuilding company visits Rosmorport’s Murmansk Branch
09:49 MABUX: Bunker prices may demonstrate downward changes on Oct 22
09:27 Crude oil prices decrease following the growth
09:10 Baltic Dry Index as of October 21

2021 October 21

18:26 Mermaid contract awards in Thailand, Angola and Saudi Arabia total 120 million USD
18:02 Non-self-propelled dredgers of Project 4395 laid down in Gorodets for Russian IWW Basin Administrations
17:46 Magseis Fairfield enters strategic collaboration with PGS for the hybrid towed streamer and OBN market
17:31 HELCOM adopts the updated Baltic Sea Action Plan, charting a way forward for a healthy Baltic Sea
17:16 DP World launches CARGOES Logistics
16:30 Proman and Stena jointly develop methanol as the pathway to sustainable shipping
16:14 APM Terminals and ZPMC enter into strategic alliance
15:33 MPC Container Ships ASA secures new financing facility, agrees on sale of six vessels and provides update on charter fixtures
15:32 Okskaya Shipyard lays down lead ship of Project RSD71 for Volga Shipping Company
15:03 NYK and Japan Marine Science to introduce and promote new mooring system to Japan ports together with Trelleborg Marine Systems
14:45 MABUX: Bunker Weekly Outlook, Week 42, 2021
14:03 NYK delivers new LNG carrier LNG Endeavour to TotalEnergies
13:49 Global Ports Investments published its Q3 and 9m 2021 operational results
13:28 Seaspan Ferries to reduce greenhouse gas emissions through using carbon-neutral Renewable Natural Gas in LNG-powered vessels
13:18 Consolidated cargo turnover of NCSP Group for 8M 2021, year-over-year
12:34 Dmitry Pankov appointed as new CEO of Management Company Delo
12:11 Port of Los Angeles cargo volume exceeds 903,000 TEUs in September 2021
11:53 Hydrographic Company installs first buoys with AIS receivers on the Northern Sea Route
11:32 Challenges and optimism: Mixed views from ports industry on business outlook
11:09 DP World is officially named Port Operator of the Year at 2021 Multimodal Award
10:39 Yara Marine’s FuelOpt offers IMO EEXI compliant Shaft Power Limitation solution
10:08 The Ocean Cleanup starts removal of plastic from Great Pacific Garbage Patch with System 002
09:52 MABUX: Bunker prices may demonstrate slight upward changes on Oct 21
09:50 Contract signed for Phase 2 of the Bagayevsky hydrosystem construction project
09:35 Crude oil market sees downward price correction
09:18 LR Digital Twin approval for Samsung Heavy Industries
09:09 Baltic Dry Index as of October 20
08:01 Aker Solutions wins FEED for Wisting FPSO

2021 October 20

18:51 Intellian and Inmarsat launch industry’s newest FleetBroadband terminals