Tallink Grupp has announced establishing a subsidiary in Singapore this week – Tallink Asia Pte Ltd – which is the group’s first subsidiary in Asia. The purpose of founding a subsidiary in Singapore is to simplify the development and expansion of the group’s activities in Asia.
Tallink Grupp Has Signed The Loan Agreement For The New LNG Powered Fast Ferry
AS Tallink Grupp’s subsidiary Tallink Superfast Ltd. and KfW IPEX-Bank GmbH have signed the loan agreement in the amount of EUR 197,6 million to finance the new EUR 247 million LNG powered fast ferry currently under construction in Rauma Marine Constructions Oy.
The loan is arranged and long-term financing is provided by KfW IPEX-Bank GmbH. Finnish Export Credit Agency “Finnvera” guarantees 95% of this post-delivery buyer credit.
The loan is secured by the mortgage on the new vessel and the corporate guarantee of AS Tallink Grupp. This OECD-term export credit loan will be drawn on the delivery of the vessel, presumably in the beginning of 2022 and has the final maturity of twelve years from the drawdown.
Positive Passenger Trend Onboard Tallink Ferries
Tallink Grupp sets passenger record for the second month in a row and transports record number of passengers in June on the Estonia-Finland routes.
Trends for June 2019
- +3% passengers
- -1.6% cars
- -2.3% c argo units
Trends for Q2
- +0.8% passengers
- -3.8% cars
- -1.5% cargo units
There has been a drop in freight between Estonia and Sweden. On the positive side, the route between Latvia and Sweden improved considerably, at least for cargo, because passengers were less numerous. The four-day absence of a vessel probably explains a lot.
Tallink Grupp Connects First Two Vessels to Shore Power at Port of Stockholm
Tallink has this week started using shore power to provide electricity for two of its vessels, SILJA SERENADE and SILJA SYMPHONY, while they are alongside in port to reduce the environmental impact of the vessels and to minimise air pollution.
The group’s Tallinn-Stockholm route vessels BALTIC QUEEN and VICTORIA I have also been fitted with the shore power connection equipment and will start testing the equipment soon. The company’s other vessels visiting the Port of Stockholm will follow suite in 2020 and 2021.
The Port of Stockholm is currently one of the few ports in the Baltic Sea region to have shore power connection available.
Tallink Grupp: Cargo Revenues Continued to Increase, But Overall Revenue for Q1 Was Down
The group reports an unaudited net loss of EUR 25.3 million (net loss of EUR 19.6 million in Q1 2018) and an unaudited total revenue for the quarter of EUR 178.9 million, which is a 2.9% decrease compared to the same period last year.
At the same time, the group’s cargo business continued to increase both in volume and revenue in the first quarter of 2019. The transported cargo volumes increased in total by 2.7%, the cargo revenues increased by 1.5% or EUR 0.4 million and amounted to EUR 29.6 million in the first quarter.
In the Q1 the group made significant investments into the upgrade of its existing fleet with EUR 25.3 million invested mainly into the technical dockings of seven vessels.
Paavo Nõgene, CEO of AS Tallink Grupp said: “The challenging period of dockings is now behind us. Our vessels are fresh, modern and ready to offer our customers new and memorable experiences. We are ready and prepared for the next two quarters of our annual high season and our whole team here at Tallink Grupp will work extremely hard to improve the results of the next months and quarters of 2019.”
Tallink Grupp Publishes 2019 Q1 Passenger And Cargo Statistics
According to the figures published, the group transported
-3.9% passengers (1,855,772)
-3.7% cars (214,087)
+2.7% freight units (93,114)
-2.8% less trips (2,234 trips against 2,299 in Q1 last year)
Six vessels have been going through various renewals and upgrades during planned dockings at shipyards in Poland, Lithuania and Finland.
AS Tallink Grupp and Rauma Marine Constructions (RMC) recently signed the contract for the construction of a new LNG-powered shuttle ferry for the Tallinn-Helsinki route, which entered into force on 27 March.
Price: EUR 250 million.
Gross tonnage: 50,000
Speed: 27 knots
The delivery of the vessel is expected in January 2022.
The new shuttle ferry will also benefit from the recently signed cooperation agreement with Tallinn Technical University, the aim of which is to develop innovative Smart Car deck solutions for the group’s vessels to enhance the loading and unloading operations and make them compatible with the already existing Smart Port solutions at the Port of Tallinn.
According to the contract, 30% of the total cost will be paid during the construction period and the rest after the delivery of the vessel. AS Tallink Grupp plans to finance 70% of the new ship cost in 2022 by long-term loan, the loan terms will be concluded in the near future.
The ship in question was built in Italy by Cantiere Navale Visentini and delivered in 2011 to Caronte in bare boat charter and from 2013 sub-chartered out to Irish Ferries. The latter still operates the vessel today.
Tallink Grupp has made further changes to the membership of the group’s Management Board. Based on the recommendations from the Chairman of the Management Board of Tallink Grupp, Mr Paavo Nõgene, the Supervisory Board of the group appointed Mrs Piret Mürk-Dubout to the Management Board with effect from 15 April 2019.
Mrs Piret Mürk-Dubout has significant international experience in sales and marketing and corporate management, and is the former CEO of Tallinn Airport.
She will oversee the travel retail business, amongst others.
A contract between parent company of Eesti Gaas (Estonia’s leading energy company), and Damen Shipyards Group has been signed for the construction of the first of a series of short-sea LNG bunker vessels to operate in the Baltic Sea.
„We are pleased that Tallink Grupp’s pioneering step of selecting LNG as the fuel for its newest vessel MEGASTAR a few years ago, has now led to Eesti Gaas taking this important step and ordering a new bunker vessel, which will benefit all future vessels operating on LNG in this region,“ Tarvi-Carlos Tuulik, Head of Ship Management, Tallink Grupp AS said.