Port expansion planned

  • 2011-08-17
  • From wire reports

TALLINN - Half of the proceeds of selling the rare earths production plant Silmet to foreigner buyers will be invested in the northeast Estonian Sillamae port, which will have a new general cargo and container terminal, reports Aripaev. “Currently, the Sillamae port has a well-developed oil products terminal and liquid chemicals terminal. It is time to start developing the most modern general goods and container terminal; we have pushed the investing button,” said Silmet’s former major owner and Sillamae Sadama (Sillamae Port) Council Chairman Tiit Vahi.

Vahi has said that the 63 million euros that was received from selling Silmet will be invested in building Sillamae port and a heating and power station. The cost of the new general cargo and container terminal, the construction of which will start in August, is expected to be 30 million euros.

Ninety-five percent of the cargo moving via the Sillamae port is east-west transit cargo; around 5 percent is local and north-south direction cargo. “We cooperate with everyone who wants to transport container and general cargo and oil products between Russia and Europe, or the CIS states and Europe,” Vahi said in discussing the company’s future.
Sillamae port will now start competing with the port of Muuga. Tallinna Sadama board chairman Ain Kaljurand noted that the region needs more terminal resources and, obviously, the Sillamae port has a partner they are building it for.

The U.S. company Molycorp bought 90.023 percent of Estonian rare earths company Silmet this spring for around 62 million euros.