Viking and Tallink fight for Silja

John Rimmer

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Reports in today's financial press suggest that Viking Line and Tallink have tabled bids to take over ailing rival Silja Line

Baltic ferry operators Viking Line and Tallink have tabled bids to take over rival company Silja Line, according to reports in today's financial press. The Finnish company was put up for sale by owner Sea Containers last November following a slump in profits. Silja's fleet has been reduced to eight vessels on three core routes—Helsinki-Tallinn, Helsinki-Stockholm and Turku-Stockholm.

The financial value of Silja's fleet is estimated to exceed €500m ($602.4m). The company admitted to RavenFox.com last year that it had over-estimated tourist interest in a route linking Helsinki and St Petersburg, which it introduced partly as a response to duty-free abolition on routes to new EU member Estonia. Silja's Helsinki-St Petersburg service will be terminated next month.

One source close to the Baltic ferry business told RavenFox.com that Tallink is "the only ferry company making a profit in the Baltic", partly owing to low staffing costs among its mostly Estonian crew. Tallink is continuing its investment in new vessels, with the new M/S Galaxy cruise vessel close to completion.

Silja Line is the world's leading ferry company in terms of travel-retail, posting sales of about $365m in 2004 according to DFNI Database. Viking's sales in 2004 reached $215m, while Tallink posted retail revenue of $140m.