The Estonian terminal has won a 10-year deal to operate four new vessels on subsidised routes from the mainland to Saaremaa and Hiiumaa islands

The government will pay EUR 200m ($253.2m) over the contract period, which is EUR 60m less than a rival offer.

Two unnamed shipyards have been lined up for the orders.

LMG chairman Torbjorn Bringedal told the BNS news agency: "We started cooperation with Port of Tallinn on the adaptation of a suitable type of ferry to local conditions and selecting the suitable shipyards in July."

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