Sharp rise in port fees would be detrimental for Estonian transit

Transit trade expert Raivo Vare writes in Postimees that it would be dangerous for the Port of Tallinn to increase current port fees sharply.

Vare says that any increase in port fees would benefit only Russian ports on the Baltic Sea such as Primorsk which increased its cargo handling volume over 100 percent last year.

According to Vare who is former chairman of Pakterminal, one of the largest oil terminals in Estonia, the claims made by the supervisory board that the port operators such as oil terminals are receiving an unproportionate share of the profits of the business is misleading.

Vare says that Port of Tallinn should consider the fact that cargo volumes in Ukrainian ports that also increased port fees sharply went down 12.5 percent last year. Cargo volume in Port of Tallinn increased 8 percent last year.

The supervisory board of state port authority Port of Tallinn has been deadlocked over the new port fees since four members of the board who represent Res Publica support higher fees while another four members appointed by Reform Party oppose them.

Source : BBN – Postimees