TALLINN - A spat has arisen between executives of state-owned Tallinna Sadam (Port of Tallinn) over a possible sale of wharves to Tallink, the region's largest maritime passenger company.
The weekly Eesti Ekspress reported that the port is planning to sell the most important wharves in Paljassaare, a region in northern Tallinn, to individuals connected with Tallink, which could build a competing private port at the location. If this is true, then the port would lose about 15 million euros per year, according to the sale's critics.
What's more, the sale should take place at a drop-down price, according to the paper.
"This would mean a prison term to some persons, as it literally boils down to theft," a source said.
According to another source, board member Allan Kiil is lobbying the decision on behalf of the executive board. The supervisory board, which is mainly a political body, has given its agreement in principle.
Kiil told the paper that he did not want the deal but had spoken with Tallink and the local utility Tallinna Vesi (Tallinn Water) about the sale of Paljassaare pipelines, but neither was interested.
Port of Tallink spokesman Sven Ratassepp said no decision had been made concerning the sale of the wharves, nor would it take place before the summer.
But together with Ain Kaljurand, the port's board chairman, he confirmed that it was in the port's interests to sell the wharves.
The stakes are high. The Port of Tallinn has reportedly fired its commercial director, Andres Lippmaa, who was responsible for an analysis of the deal. In his analysis Lippmaa recommended that the sale of the wharves be halted. He stressed the potential risks of selling the wharves to Tallink.
According to the analysis it would cost from 420 's 600 million kroons (27 's 38.4 million euros) to transform Paljassaar into use as a passenger port.
Tallink could earn back the money in 10 years if traffic remained at current levels and twice cheaper port fees were applied at Paljassaare than at the Port of Tallinn.
Tallink refused to comment on the report. Head of communications Luulea Laane said it was "simply idiotic."
