Government plans divesting a stake in Port of Tallinn

TALLINN (ETA) - The Estonian government is considering selling off a 30 percent stake in the state-owned Port of Tallinn, the largest commercial and passenger port complex in Estonia.

The government makes the promise in the new IMF memorandum, signed Feb. 11.

"The Port of Tallinn, which is responsible for the operation of four separate ports in the immediate vicinity of Tallinn, remains wholly owned by the state," the memorandum reads.

"In the interest of creating a competitive, efficient, and transparent environment for the transport of both passengers and freight - which will become increasingly important as other Baltic ports start competing for the same markets - early consideration would also be given to the privatisation of a 30 percent stake in the Port of Tallinn to improve transparency and corporate governance," the memorandum states.

As one of the most efficient state-owned firms, Port of Tallinn boasted a 23.5 percent growth last year to 26.4 million tons, becoming the second-largest port in the Baltic Sea region after Ventspils in Latvia.

Last year the port earned 280 million kroons and expects a profit of 405 million kroons this year.

The profit of the port is targeted to grow to 444.5 million kroons in 2001 and 511 million kroons in 1994.

The turnover of the port should cross the one billion kroons mark in 2004.