It is feared that the Tallinn port activity may be impinged by the rapidly growing Russian port of Ust-Luga.

Although the turnover in the port of Tallinn grew by 11 per cent during the first quarter of this year, the port‘s administration considers that at the end of the year the cargo loss will reach 3 million tons.

The opening of the fuel oil terminal in Ust-Luga will greatly affect the Tallinn port where oil products make a higher part of cargo.

Russia does not hide the fact that the construction of the huge port in Ust-Luga is intended to compete with the closest ports of eastern Baltic countries, Estonia in particular.

The Sillamae port administration doesn‘t hide its pessimism either. During the first quarter of this year, the port handled 770 thousand tons of cargo or 2.5 percent more than last year. Its marketing administrator, Andrei Birov, acknowledged that the growth had been influenced by the frozen Russian ports.

It is recognized that due to lower railway rates, it is much more beneficial for Russian shippers to use their own ports than the ones in Estonia.

Ust-Luga port will severely affect container loading of eastern Baltic Sea region. It is expected to complete the 3 million TEU container terminal construction by the year 2011.The owners of the terminal operator "Ust-Luga container terminal" are the shipping group "Fesco" and the mining and metallurgical company "First Quantum", controlling 40 percent of capital, and 20 percent being owned by  one of Europe's largest container terminal operators "Eurogate".