The Port of Tallinn owns a large area of land surrounding the harbor and has long planned to develop it. CEO Valdo Kalm described the detailed zoning plans that reached the Tallinn City Council on Tuesday as a milestone, saying that once they are approved, construction could begin fairly quickly.

According to Kalm, work on the new A-terminal building could move forward swiftly, as the architectural competition has already been held and the design is complete. The new terminal would be built in front of the current one, closer to the tram stop. The plans also include a plaza next to the terminal and an underground car area beneath the building.

"If everything goes smoothly, we could begin construction as soon as possible — by the end of this year or the beginning of next. We've done a great deal of preparatory work," Kalm said.

As soon as the city council approves the zoning plan, the Port of Tallinn intends to launch a construction tender. Kalm estimates that building the terminal and upgrading the surrounding area could take one to two years.

"This isn't just a building. It's the surrounding area, the urban space, a park and the redirection of traffic and vehicle flow. The final cost will become clear during the tender, but we're talking about an investment of up to €30 million. It's a fairly large-scale infrastructure project and we'll finance it from our own cash flow, which we've already planned out for the next few years," he said.

As part of the A-terminal project, the Port of Tallinn's administrative building is also set to be renovated.

"It's an old limestone building — a very beautiful one that even survived World War II. We're required to showcase the facade and will be highlighting it in the new plans," Kalm noted.

Once the new A-terminal is complete, the current terminal building will be demolished. "It will be replaced by new, modern galleries that will serve the Viking Line and Eckerö Line docks. The old building will come down and the traffic layout in the area will be redesigned to be more pedestrian-friendly," said Kalm.

Reidi tee development

Part of the zoning plan submitted to the city council also includes the construction of new buildings along Reidi tee, on plots owned by the Port of Tallinn. The port itself does not intend to develop these commercial and residential buildings.

"We don't plan to invest in them ourselves. We'd like to hold competitions and bring in developers, including international ones, to create a modern, mixed-use urban space," Kalm said.

In addition to buildings, the port also plans to develop a park along Reidi tee that would stretch from the roadside to the Admiralty Basin. "It would create a unified port area that could serve both local residents and, of course, our visitors very well," said Kalm.

According to Kalm, the Port of Tallinn's strategy is to operate as a landowner-type port, which means it does not intend to sell its property. Instead, it plans to bring in developers through building rights agreements of up to 99 years.

"The basic model is still to bring in developers who invest. We'll make smaller investments in infrastructure — roads, utility networks — but not in buildings themselves," Kalm noted.

The Port of Tallinn doesn't plan to put all its land on the market at once but will release parcels gradually. "We'll try to release the plots at a reasonable pace. It's important to monitor the competitive landscape. There's no point in flooding the market," said Kalm.

Kalm also sees the opportunity to move quickly on the first developments along Reidi tee. "If we can move ahead with approving and enacting the detailed plan soon, then we could launch competitions for select parcels this year and start accepting proposals," he said.

First stage

In the first phase, Kalm envisions putting 40,000 square meters of building volume — both residential and commercial space — up for tender. In total, he estimates the development could eventually cover around 300,000 square meters.

"There are several detailed plans involved and the timeline stretches quite far into the future. It really depends on how the market behaves, how much interest there is overall and what kind of real estate people are looking for. So it all hinges heavily on market conditions, but the total volume exceeds 300,000 square meters," Kalm said.

"It all depends on the developers. Of course, we'd like to see it fully developed — not just commercially, but also in terms of urban improvement. We'd like to clear out some of the old warehouses and create a more refined cityscape along Reidi tee," he added.

Asked whether noise from the port might make the area less attractive for development, Kalm said it would not.

He noted that much of the Port of Tallinn is already equipped for ships to use shore power and starting in 2030, all ships will be required to do so. This, he said, would significantly reduce noise levels.

"Right now, ships at five of our docks are already using shore power. That noise is gone. It's no longer an issue," Kalm said.

As for when the entire development might be completed, Kalm couldn't give a definitive timeline. "It's like with the city of Tallinn — if you noticed, one of the six zoning plans even includes land reclamation. Near Russalka, the water is very shallow and there's potential to fill in the area if desired," he said.

"We've currently sketched in a beautiful marina there. It's also a highly valuable piece of real estate, with sunset views," he added.

"This could all take several decades. But I believe that as a maritime city, Tallinn must develop in this way. We truly believe it will all happen someday, but we're definitely talking about ten years or more," Kalm said.

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