On 28 June 2018 AS Tallinna Sadam (hereafter “Tallinna Sadam”) signed a cooperation agreement and a building title agreement with MPG AgroProduction OÜ (hereafter “MPG”) for the development of an oilseeds processing and logistics complex at Muuga Harbour. The agreements were signed for a term of 99 years. According to the agreements, MPG will construct a plant for processing oilseeds, a superstructure for loading and unloading raw material and end products on the quays, as well as loading facilities for transporting raw material and end products to and from Muuga Harbour using the railway and road network. MPG’s investment into the superstructure and facilities is estimated to be approximately EUR 200 million. The complex, covering an area of approximately 50 ha, will be situated in the eastern part of Muuga Harbour, which was formerly used by Coal Terminal AS (currently under bankruptcy proceedings).
The project development is planned to be executed in full capacity during the next five years, subject to the processing of relevant construction and environmental permits and confirmations by the local municipality. The complex is expected to start operating in 2020 at the earliest and is expected to reach full capacity by 2024 at the earliest. Total processing capacity of the complex is estimated to be 1.5 million tonnes per year which could result in total additional annual cargo volume of 2.5 million tonnes for Tallinna Sadam.
MPG is an Estonian company established in 2017 by a group of European investors. It is expected that approximately 300 direct jobs and 1000 indirect jobs will be created after the complex starts operating at full capacity.
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2017 serviced 10.6 million passengers and 19.2 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 m/v Botnica for icebreaking and construction services in Estonia and off-shore projects abroad. Tallinna Sadam group is also a shareholder of a joint venture AS Green Marine, which provides waste management services. Tallinna Sadam group's sales in 2017 totaled EUR 121.3 million, adjusted EBITDA EUR 66.5 million and net profit EUR 26.4 million.
Additional information:
Marko Raid
Chief Financial Officer/Member of the Management Board
AS Tallinna Sadam
m.raid@ts.ee