Comments on the article “Head of Port of Tallinn drew a dismal picture of the company “ published in “Eesti Ekspress”

Having read the interpretation of the presentation made to the government on the
future plans of Port of Tallinn published in “Eesti Ekspress”, we consider it   
important to add our comments to avoid coming to wrong conclusions.             

Port of Tallinn has presented to the government a scenario on what would be the 
financial figures of the company, if container transport project from China to  
Russia and other near-by countries through Estonia was to be implemented. As it 
is an extremely big investment, which may amount to EEK 2-3 billion, we have    
started an early dialogue with the government to give a clear signal - Port of  
Tallinn is not able to finance such an investment only from loan capital, but   
the owner should not take dividends either. Hence, the wish of Port of Tallinn  
not to pay dividends is directly related to possible future investment plans and
is in no way related to the financial results of the company as the result of   
the so-called “bronze night“. Based on the aforementioned, it is quite premature
to talk about excessive borrowing by the company or about exceeding the allowed 
financial ratios - the exact size and risk level of Port of Tallinn investment  
depends on the results of negotiations held with the Chinese, the amount of loan
capital necessary for realization of the investment also on the vision of the   
government about dividend payments in the coming years.                         

Several speculations have been published in relation to the value of the assets 
of the coal terminal and Saaremaa deep-water harbour. Unfortunately, until      
presently no attention has been paid to the reasons why Port of Tallinn has     
decided not to impair these assets. The fact that Saaremaa Harbour does not have
30 ship calls during the first three years or that the coal terminal has        
problems in some years does not mean that these need to be impaired at          
once. After the short three-year operations it is quite impossible to state that
for example Saaremaa Harbour has not fulfilled its goal! The physical and       
economic life of the investments made by Port of Tallinn is up to 50 years. In  
case of the coal terminal it is partially infinite, as in the course of its     
construction also large areas of reclaimed land were formed. Hence, these assets
will be valued with the perspective of 30 or even 50 years and during this time 
recovering of the coal terminal may occur or for example coal terminal may be   
taken into alternative use.                                                     

Port of Tallinn is aware of the changes taking place in the market and the      
development plans of Russian ports. But we surely have not chosen the path      
leading to long and toilsome shrinkage. We believe that each change entails new 
opportunities and it is for the sake of these we are working today. Port of     
Tallinn does not intend to start any investments without sufficient guarantees  
and resources for their financing.

Sven Ratassepp                                                                  
Public Relations Manager                                                        
+372 631 8064