Estonia, EU – Baltic States, Legislation, Port, Transport

TS Laevad became the operator of ferry services between the mainland and Estonia's large western islands at the beginning of October 2016, when the contract of the previous private operator expired. The company's sales revenue in the three-month period from October to December 2016 totaled 1.9 mln euros, it appears from the annual report.

The size of the subsidy paid to TS Laevad by the government during the three months was 4.4 mln euros.

Since the delivery of the ferries commissioned from the shipyards in Turkey and Poland was adjourned, the company had to pay 5.2 mln euros to lease second hand ferries to be able to provide the service during the initial period. As at the end of the year, the sum total of the accrued penalties for delay was 5.8 mln euros. The company itself meanwhile paid the Ministry of Economic Affairs and Communications 400,000 euros as fine for the delay with the delivery of the ferries.

In 2014, TS Laevad signed a loan agreement with the parent company Port of Tallinn to borrow 124 mln euros to finance the construction of the ferries. The amount of the loan drawn in 2015 was 54.7 mln euros and the amount drawn last year 25.8 mln euros, making for a total of 104.5 mln euros.

TS Laevad employed 37 people on the average in 2016 and wage costs totaled 1.1 mln euros. Remuneration for the members of the company's senior management totaled 128,000 euros.