TALLINN - China's Ningbo Port has agreed to help build an approximately 150 million euro container terminal and goods warehouse together with the Port of Tallinn, bringing to a close one of the most anticipated deals in the Baltic transit industry.
Port of Tallinn Chairman Ain Kaljurand was quoted as saying that the terminal should be completed by the beginning of 2011 and that total investments would amount to $220 million.
Ningbo Port is one of China's busiest ports, with annual turnover consistently exceeding 100 million tons. By contrast, the Port of Tallinn, the Baltics' largest, handled 36 million tons last year (down 13 percent from 2006).
The two sides will split investment outlays in the terminal, which will also serve as a logistical center for distribution of Chinese goods in northern Europe and Scandinavia, according to the agreement signed Jan. 11.
For years Chinese businessmen have studied the possibilities of opening a terminal in one of the Baltic states, which have vied for the lucrative transit route with a variety of incentives.
Kaljurand said that the agreement was important not just for the Port of Tallinn but for the entire region, as there had so far not been any such direct link between China and the Baltic Sea region.
Economic Affairs Minister Juhan Parts said that according to the agreement Ningbo Port, which has a history stretching back to the 8th century, would not plan any other projects in the Baltic Sea region.
He added that because of the agreement it was probably necessary to revise the Port of Tallinn investments budget.
According to the joint protocol of intent, the new container terminal will be built in the eastern part of Muuga Port. In the first phase, the capacity of the terminal will be nearly 1 million TEU containers a year, the ministry said.
