Estonia, Legislation, Port, Transport

"It means that the crew of the icebreaker Botnica would be building wind turbines in the sea during the summer, installing structures both under water and above the sea surface. Since our vessel has the precise positioning feature enabling to keep the vessel very stable in order to raise and put in place wind turbine components, we are very well suited for this job," TS Shipping managing director Ulo Eero told BNS. He added that the crew of Botnica has earlier experience with the construction of wind farms.

Eero said it is difficult to say at this point how likely it is that Botnica will win some such tender, as the market for offshore works is in a low ebb and most vessels are standing idle in port.

"We are trying to be as competitive as possible. We cut wages in collaboration with the crews and have brought the operating costs of the vessel down a lot," Eero said.

He added that whereas the situation now is very difficult, the future looks brighter for Botnica.

"It appears from a report of a London based company making analyses of the offshore business that since all the equipment of the oil and gas industry that there is in the sea is from 15-20 years old and hence completely obsolete, renovation of equipment and installation of new equipment will start in the coming few years," Eero said.

He said that while the company is in talks with more parties, in five tender procedures it has submitted an offer in writing and completed the first stage of negotiations.

TS Shipping said a week ago that it is holding talks with five partners to find a summer job for the vessel. Eero said then that they have basically reached agreement with Port of Tallinn and one crew that crew wages will be cut without laying anyone off, the maintenance costs of the ship will be reduced to the minimum and the office of TS Shipping relocated to cheaper rental space so as to stay competitive until finding work for the summer

The vessel has a contract with Russia's Karmorneftegaz for working in the Kara Sea, which runs until the end of 2017, but the European Union sanctions against Russia prevent it from working there.

The Port of Tallinn subsidiary bought the Botnica in 2012 for 50 million euros.