Estonia, Legislation, Port, Tourism, Transport

The deadline of the procurement that was organised by the Ministry of Economic Affairs is Monday and till that date arrives, Minister of Economy Urve Palo does not wish to call the procurement a failure yet. "I cannot, I am not allowed to speculate and give any indications to the market," she said.

The public procurement for finding an operator for ten years, starting October 2016, for the Kuivastu-Virtsu (mainland-Saaremaa island) and Rohuküla-Heltermaa (mainland-Hiiumaa island) ferry routes was announced in spring. The Ministry sent an invitation to participate to a dozen ship operators.

Two days ago, Saaremaa Laevakompanii (SLK), parent firm of Väinamere Liinid OÜ, that operates the ferry routes at the moment, sent a letter to the Minister, asking the conditions of the procurement to be changed. The letter hinted that if conditions are not changed, they will not take part in the contest. The letter, signed by SLK manager Tõnis Rihvk stated that while SLK wants to participate at the procurement, it is made very difficult due to unrealistic deadlines and other disproportional conditions set to the bidders. For example, the bidder should have 4 ferries that correspond to requirements of the procurement by October 1, 2016, which is two years away. SLK currently has 3 such ships and Rihvk said that building even one ship corresponding to the procurement requirements in such a short time is unrealistic.

Estonian state-owned company Tallinna Sadam, who has received from the owner a clear guideline to participate in the procurement, had to admit at the beginning of the week that its tender for the purchase or construction of four suitable ferries was a failure.

The company's council, that met two days ago, authorised the company's board to continue the search for ships. The company's board member Allan Kiil said they now seek to find the ships via direct negotiations with manufacturers and ship owners. They even plan to negotiate with owners of the ships that SLK now uses. SLK belongs to Vyacheslav Leedo, but not the ships – they are owned by real estate businessman Olav Miil-related holding companies.

Minister Urve Palo said that no compromises are made with SLK since the letter to change the conditions came so late.

If the procurement fails, the state has two options: either to announce the next procurement or launch direct negotiations with ship operators. "There is still two years of time. I believe that we will find a solution, I will work to in the name of that to the end," Palo said.

Just like Rihvk, Palo notes that two years is too short a time in the shipbuilding industry. The state should have had to start looking for the operator of Saaremaa and Hiiumaa lines several years earlier.