Icebreaker Botnica charter in summer 2023

Baffinland Iron Mines Corporation (hereinafter: “Baffinland”) declared of using an additional option to charter the multifunctional icebreaker Botnica in 2023 for a shorter period of minimum 60 days during the period from September to November. The exact number of chartering days depends on weather and other conditions. The daily hire rate for this period is higher compared to previous summers longer period (June to November).

In December 2022, AS Tallinna Sadam subsidiary OÜ TS Shipping (hereinafter: "TS Shipping") and Baffinland extended the 5-year framework agreement of chartering the icebreaker Botnica signed in 2018 for the summer period of 2023. Baffinland had a call option to continue chartering Botnica under the same conditions as previous years from the end of June to the end of November and an additional call option to shorten the period of hire to minimum of 60 days. Both options were exercised.

In 2018-2022, Botnica assisted Panamax-type cargo vessels in Arctic waters of northern Canada for exporting iron ore from the Milne Inlet port to the ocean. According to an agreement with the Estonian Transport Administration, Botnica provides icebreaking services in Estonian coastal waters from December 20 to April 20. In 2022, the total number of Botnica charter days was 249 and the annual utilization rate of the ship was 68%.

In order to maintain a high utilization rate of the vessel, TS Shipping is currently actively negotiating to secure work for the vessel in other offshore projects during summer months. The offshore market has shown significant rise in demand and prices in the last 6 months and therefore, the management estimates the perspective to find substitute summer work for Botnica quite realistic.

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. 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. The group’s sales in 2021 totalled EUR 110 million, adjusted EBITDA EUR 54 million and profit EUR 26 million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591


Icebreaker Botnica charter in summer 2023