In an ongoing dispute between AS Tallinna Sadam (hereinafter referred to as
"Tallinna Sadam") and Worldwide Cargo Establishment (hereinafter "WCE"), WCE
applied to the Competition Authority to initiate a surveillance proceeding. The
Competition Authority has decided to initiate a surveillance procedure aimed at
clarifying whether Tallinna Sadam, when offering use of infrastructure at Muuga
Harbour to WCE, has the characteristics of a violation of § 16 (1) and (3) of
the Competition Act.
On 30.05.2018, WCE filed a claim with the Harju County Court against Tallinna
Sadam requesting that the minimum cargo volume in the cooperation agreement
should be reduced retroactively from 2015 and that the contractual penalties
paid for 2015-2017 in the amount of EUR 0.45 million should be repaid. WCE has
requested the Harju County Court to suspend the proceedings until the position
of the Competition Board becomes clear; the court has not yet ruled on the
suspension of the proceedings.
This is not a dispute about new aspects, the Competition Authority's proceedings
concern the same aspects that are the subject of the above litigation.
WCE is a cargo operator of Tallinna Sadam, which owns a grain terminal in Muuga
Harbour and handles grain. According to the long-term co-operation agreement,
WCE has a minimum annual cargo charge obligation of EUR 0.31 million, failing
which WCE shall pay Tallinna Sadam a penalty in the amount of the difference
between the mandatory and the actual cargo charge. In the opinion of Tallinna
Sadam and its legal advisers, the claim is not substantiated and it is not
probable that a liability will arise, therefore Tallinna Sadam has not
considered it necessary to recognise a provision for the claim.
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the
Baltic Sea region, which in 2019 serviced 10.64 million passengers and 19.9
million tons of cargo. In addition to passenger and freight services, Tallinna
Sadam group also operates in shipping business via its subsidiaries - OÜ TS
Laevad provides ferry services between the Estonian mainland and the largest
islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for
icebreaking and construction services in Estonia and offshore projects abroad.
Tallinna Sadam group is also a shareholder of an associate AS Green Marine,
which provides waste management services. Tallinna Sadam group's sales in 2018
totalled EUR 130.6 million, adjusted EBITDA EUR 74.4 million and net profit EUR
24.4 million.
Additional information:
Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
m.zirel@ts.ee (mailto:m.zirel@ts.ee)
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