Tallink Grupp is the leading provider of high-quality mini-cruise and passenger transport services in the northern Baltic Sea region, as well as the leading provider of ro-ro cargo services on selected routes. As a result of recent investment and an ongoing fleet renewal programme, the company currently deploys some of the most advanced cruise ferries in the region, setting a new benchmark for travel standards on the Baltic Sea. Romana Moares reports.
BALTIC QUEEN Mariehamn. Image © Marko Stampehl
The company’s history goes a long way back. In 2006, its position was significantly reinforced by acquiring a stake in the traditional Finnish ferry provider Silja Line, forming an integrated company that has become the largest cruise operator in the Baltic Sea region. The extended company’s ships continued to operate under their current flags on routes between Finland, Estonia, Germany, Latvia and Sweden.
Mr Paavo Nõgene, the new Chief Executive Officer of AS Tallink Grupp, reflects: “The merger has enabled us to grow our business significantly here in the North Baltic Sea region and acquire a 47 per cent market share in sea transportation in this part of the Baltic Sea. The merger has enabled Tallink to move from being purely an Estonian business to being a truly international business, and has significantly boosted our market position.”
For passengers’ comfort
Tallink Grupp today operates on seven different routes, offering year-round regular sea transportation services. In 2017 alone the company transported approximately 9.8 million passengers and nearly 365,000 units of cargo.
Mr Nõgene explains that the vessels provide not only comfort for the general public, but also very good facilities to business travellers. “On-board our shuttle vessels Star and Megastar we have both a Business Lounge and Comfort Lounge for our business customers. The Business Lounge ticket gives our business travellers the most comfortable voyage on the Baltic with a seasonal buffet, drinks, daily papers and Business Lounge shopping options. Our shuttle and cruise vessels also have modern smaller meeting rooms as well as larger conference facilities and are very popular meeting and conference venues on the Baltic Sea.”
The maritime services are supplemented by complementary business lines – Tallink Grupp operates four hotels in Tallinn and Riga, has a stake in a popular Estonian taxi company Tallink Takso and runs a successful duty free and retail business with 41 shops on-board all of its vessels and 15 stores onshore in Estonia. “We have recently acquired the franchises of global brands such as Esprit and United Colours of Benetton in Estonia, operate the only floating Burger King in the world and this spring brought the We Proudly Serve concept of Starbucks on-board our vessels,” says the CEO, describing the wide business scope. “Our aim is to continuously look for new ways to offer our customers the best quality products, top services and memorable experiences with Tallink Grupp.”
Sustainable cargo shipment
Tallink Grupp provides cargo transportation on all its routes and Mr Nõgene confirms that this line of business is expected to grow in the future. “In 2017, we moved our cargo route, which used to operate from the Tallinn Old City Harbour in the city centre to Muuga Harbour, thus easing congestion in Tallinn city centre significantly. Muuga Harbour is a fast-developing harbour just 11 kilometres out of Tallinn and offers great potential.”
In October 2018 the company signed a Letter of Intent with Rauma shipyard in Finland for the construction of a new shuttle ferry. The new ferry, set to operate on the Tallinn-Helsinki route, will be dual-fuel operated, using LNG as its main fuel, and will have capacity for 2800 passengers. It will be equipped with the latest technologies and the most innovative solutions available with the aim of becoming the most energy-efficient and environmentally-friendly vessel operating on the Baltic Sea.
“Sustainability is an issue of increasing importance and one of our priorities,” Mr Nõgene affirms. This has been demonstrated for example by a partnership agreement with Neste Oil for the supply of low sulphur marine diesel oil to Tallink Grupp’s ferries making port calls in Finland. The marine diesel oil has less than 0.1 per cent sulphur and fully complies with the EU Sulphur Directive requirements.
Pioneering approach
“Neste has been more than just our marine fuel provider. We work together on several development projects and have agreed that Neste may use our ships for testing new solutions and improvements. The cooperation has been and continues to be mutually beneficial.
“But Neste is only one of our many cooperation partners. We have a number of on-going projects with various partners, aimed at making our operations more efficient and green,” he adds. “We also have an on-going fleet renewal programme, the aim of which is to improve the efficiency of our fleet and to enhance our customers’ experience on-board through continuous upgrades. In the last five years alone we have invested nearly €80 million into the upgrades to our fleet and this will also continue in the years to come.”
Mr Nõgene confirms that Tallink Grupp is set to continue to grow and develop. “In addition to business expansion, we have achieved an important milestone in December – a dual listing of our shares on Nasdaq Helsinki in addition to our listing on the Tallinn stock exchange. And the development does not stop here – we have a lot of new ideas and plans to achieve further growth, in line with our vision to be the market pioneer in Europe by offering excellence in leisure and business travel and sea transportation services.”
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