January 19, 2011 [ERR News] - Tallinn Administrative Court rejected an effort by terminal operator Vopak EOS to stop the construction of Tallinn's new prison in the Muuga neighborhood.
The court mandated on January 19 that Vopak EOS compensate the procedural costs of State Real Estate Ltd, amounting to 8,245 euros, the court secretary told uudised.err.ee.
The planned prison would reside 100 meters from the Vopak EOS. The company sees the close proximity of the prison as having a negative impact on business.
However, the Ministry of Justice argued that the company had agreed to the project in 2007. Priit Kama, undersecretary of penitentiaries, added that State Real Estate Ltd. has already spent 127,824 euros of taxpayer money on the planned location.
Vopak EOS said it would appeal the decision. “Since State Real Estate Ltd. has actually found a new location for the planned Tallinn prison in the Rae municipality, it is possible to solve the deadlock,“ said company chair Arnout Lugtmeijer. „The state could move forward with the new prison project and Vopak EOS could launch a 25-million-euro investment in the Termoil terminal.”
Continuing the current battle is in neither party’s interest, but the company threatens to stretch the trial for another four years.The port operator’s main argument is that it resides in a government-established security zone that prohibits such projects in 300-meter radius of ports, railroads and pipelines – all of which are located in the area.
Vopak EOS, which employs 500 in Estonia, deals in oil storage and shipments. The pipeline on the prospective grounds of the prison pumped 8.3 million tons of oil in 2010.
