Palo beckons failed ferry firms to her table

Photo: Mihkel Maripuu

Economy and communications ministry is set to continue main islands ferry connection talks with up-to-now failed Vjatšeslav Leedo owned Väinamere Liinid and state enterprise Port of Tallinn.

By September deadline, the international procurement for mainland-islands ferry traffic drew one offer only – but OÜ Väinamere Liinid qualified not. Port of Tallinn, though ordered by government to participate, declined having failed to acquire the required ferries or enter agreements to have these built.  

As the competition flopped and direct negotiations were announced, Port of Tallinn hastened to say they are hoping to get the needed ferries by end of September being at this very instant in direct talks with world renowned ship builders.

«By the council, the board was ordered to do intensive talks with ship owners and builders during September and to present ship purchase offers to the council by September 30^th,» said port of Tallinn CEO Ain Kaljurand.

«At the moment, we are with this on the finish line and we will be sure to present the various variants for the council to decide.»

The ministry is launching direct talks to find, starting 2016, carriers for Rohuküla-Heltermaa and Virtsu-Kuivastu ferryboat lines. The ferryboats must allow round-the-year self sufficient carriage without tugboat or icebreaker help. Every vessel must hold at least 150 automobiles or ten road trains.

Passenger places with safety-equipment must suffice for 600 travellers, including a minimum of 400 indoor seats. The operator-to-be must own at least four ferries and the state will be entitled to buy these out at a later date. Reputedly, Mr Leedo’s business alone currently meets such requirements.

As explained by staff of former economy minister Juhan Parts, tax payers would stand to save dozens of millions of euros if the mainland-island ferries were state-owned.

Port of Tallinn had launched preparations to acquire ferries to be able to hold a competition for finding an operator use a solution like with Elron: state enterprise carries passengers.

But things started to get delayed at the port. With ferryboat traffic, all was well as if: ferries used by Mr Leedo are new and nice, the sailors and on-shore service are polite and helpful, the ticket is affordable and easily accessed.

While at the start it Ms Palo seemed to support the idea of Mr Parts to snatch the ferry biz from Mr Leedo for the state, she suddenly performed a U-turn. Freshly on the ministerial chair, Ms Palo went before government with a proposal to declare procurement on conditions up to now met by Mr Leedo.

Now, economy ministry has forged a bill which, in case public procurements get delayed, allows direct contracts up to two years at a time with firms to keep boats sailing.    

By the bill, the state i.e. economy ministry may, in periods to come, enter into (directly awarded) public service contracts without prior adversarial procurement procedure.

«There being few to offer services for ship and ferryboat services and under certain conditions it may prove difficult or outright impossible to find carriers via public procurement, but as alternatives absent a continual and sustainable movement needs to be ensured and ferryboats are a must, direct contract option with ferryboat traffic would provide a way out in certain unforeseeable situations,» says letter of explanation to the bill.