Lower ice class of Estonia's new island ferry result of price and green requirements

Estonia's fifth ferry to take passengers to and from the major islands will be greener but have lower ice class than its predecessors.
The current ferries operated by the State Fleet have an ice class of 1A, meaning they can handle ice up to 80 centimeters thick. The planned fifth ferry, however, is set under the procurement terms to have an ice class of 1B, with a limit of 60 centimeters. This past winter, even higher-class vessels encountered difficulties due to ice conditions.
Minister of Infrastructure Kuldar Leis, responding to an inquiry from Riigikogu member Reili Rand (SDE), explained that the ice class of the fifth ferry being procured was determined based on available budgetary resources.
"Increasing the ice class to 1A would entail an estimated 40–50 percent increase in the required propulsion power of the vessel, which in turn would significantly raise construction costs. Additionally, the cost of the ship's hull would also increase," Leis said.
He added that the choice of ice class 1B is supported by a study commissioned by the Transport Administration in 2023. The study's final report indicates that maximum ice thickness in the Väinameri Sea may only occasionally reach 60 centimeters in certain areas, which corresponds to the upper limit of ice class 1B.
"According to analyses of various climate projections presented in the study, the share of such severe winters in the coming years, from 2030 to 2055, is only three percent. In what the study describes as an average winter, ice thickness in the Väinameri Sea ranges between 10 and 20 centimeters, while in a warm winter there is no ice cover in the Väinameri at all," the minister said.
New ferry must meet green criteria
Rand asked whether the option had been analyzed of ordering a fifth ferry of the same type as the current vessels, which have proven reliable and are suitable for both main routes.
"The construction of the vessel is planned to be financed through the European Union's fund for improving energy efficiency and reducing environmental impact (the so-called Modernization Fund). The funding application for this measure specifies that the vessel must be a 100 percent electric ferry, with the aim of reducing greenhouse gas emissions by 64 percent compared to the existing ferry Regula," Leis replied.
The Modernization Fund grant amounts to €28,000,000 (excluding VAT). This is supplemented by €13,900,000 in state co-financing, which will be covered from CO2 funds and is likewise conditional on meeting green targets.
If a ferry similar to the existing vessels were to be built, the budget would need to be increased significantly — by at least 50 percent, the minister emphasized.
He noted that since the current ferries primarily run on diesel fuel, it would not be possible to use Modernization Fund or CO2 resources for such vessels, meaning construction costs would have to be covered entirely from the state budget.
The budgeted cost of the new vessel is €41.9 million.
The project will be financed 67 percent by the European Union's energy efficiency and environmental impact reduction fund, with the Estonian state contributing approximately 33 percent of the total cost.
Design and construction tender fetches two bids
Two bids have been submitted to the State Fleet for the construction of a new ferry to operate between Estonia's large islands, from the Polish shipyard CRIST S.A. and from Estonian company Baltic Workboats AS in partnership with UAB Vakarų Baltijos Laivų Statykla, the State Fleet announced.
The bids were submitted by March 16 and the procurement process has now entered the evaluation phase.
According to Andres Laasma, director general of the State Fleet, the submitted bids reflect the current situation in the European shipbuilding market well.
"Shipbuilding volumes in Europe have increased significantly in recent years and the sector is very busy. Negotiations with shipbuilders during the procurement also showed that the state's set budget of €41.9 million presents a real challenge for shipyards — all of this is reflected in the number of bids submitted," Laasma said.
"At present, the state has two bids on the table, both from shipbuilders with strong references and whose build quality there is no reason to doubt," he added. "It is still too early to draw conclusions about the outcome of the procurement; at the moment, compliance checks of the submitted bids are underway."
The State Fleet announced the international design and construction procurement for the fifth ferry serving the large islands on June 12.
Last two tenders fail
The State Fleet noted that the procurement for the fifth ferry, now being held for the third time, was this time organized in the form of a competitive dialogue, allowing negotiations with bidders on technical parameters in order to find the most cost-effective solution.
Under the task assigned to the State Fleet by the Ministry of Climate, the objective was to find a shipbuilder from the European region and to keep the project within a budget of €41.9 million.
At the beginning of September, the State Fleet began negotiations with four European shipbuilders. In total, three rounds of negotiations were held as part of the procurement, during which both technical details related to the vessel's construction and the terms of the construction contract were refined in order to arrive at the best price-quality offers.
The minimum requirements set out in the technical specification of the procurement are based on the conditions of the project's funder — the European Union's energy efficiency and environmental impact reduction fund — which places the vessel's energy efficiency at the center of the project, the State Fleet said.
The new vessel must be at least 66 percent more energy efficient than the current reference vessel, Regula.
The ferry's main power source is planned to be shore-charged green electricity stored in batteries. For emergency situations, the vessel will also be equipped with auxiliary generators running on biodiesel.
The ferry is designed to accommodate around 110 cars and at least 300 passengers.
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Editor: Marcus Turovski, Valner Väino









