
Ship conversions will become more necessary as methanol, ammonia, and other alternative fuels are adopted. Photo: Vaas / Transpordiamet
Estonia has the potential to become a significant player in the global ship conversion and modernisation industry, generating up to 70 million euros in tax revenue annually, as concluded by a recently finished study.
The study “Investment Needs of Ports and the Development of a Shipbuilding and Repair Centre Operating Model to Meet the Goals of the Green Reform” confirms that the increasing demand for ship rebuilding presents an excellent opportunity for Estonia to enhance the growth of the maritime industry.
As methanol, ammonia, and other alternative fuels are adopted, ship conversions will become more necessary. Therefore, in cooperation with the maritime sector, the Ministry of Climate plans to help create the prerequisites for establishing a centre for ship modernisation and climate-friendly maritime technologies in Estonia.
According to Kaupo Lääneranna, Deputy Chancellor of Maritime Affairs and Water Environment at the Ministry of Climate, establishing the center would lead to an increase in exports, the creation of more jobs, and a strong positive economic impact on both directly and indirectly related sectors.
“Estonia’s economy requires new growth opportunities, supported by global megatrends as well as the European Union and the International Maritime Organization’s efforts to reduce greenhouse gases in the shipping sector,” said Läänerand.
Three potential locations for new ship conversion centre
“By establishing a centre for marine technologies, we can take advantage of a real opportunity for economic growth through green reform, ensuring jobs in various sectors of the maritime economy and the processing industry as a whole. This is because the shipping markets offer growth opportunities. It is encouraging to note that the industry’s competitiveness and the establishment of new industries were also key points of focus in the discussions of the coalition agreement from the beginning.”
According to the study, systematic cooperation between companies, the state, and other parties is important for achieving success. To promote cooperation between companies, a favourable environment must be created, and support must be provided in the training of qualified labour, marketing, and the development of technologies.
The centre should bring together Estonian shipbuilding and supporting processing industry companies and act as an impartial coordinator and leader, execute development projects, and foster collaboration with other sectors.
Muuga, Sillamäe, and the port of Vene-Balti were identified as potential locations for the ship conversion centre due to their excellent maritime transport connections and the presence of shipbuilding companies.
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