Episode 8

Cruise Pioneers | Estonia's Smart Maritime Vision, with Trade Estonia

This week on Cruise Pioneers, Birgit Liodden is joined by Kaupo Läänerand, Estonia’s Deputy Minister for Maritime and Water Affairs. With over a decade of hands-on maritime experience and a background in managing the largest government-owned fleet in Estonia, Kaupo brings a unique, systems-level perspective to the future of ocean innovation.

Together, they explore Estonia’s bold leadership in maritime sustainability, digitalisation, and smart technologies—from AI integration in industry, to pioneering smart port and ship solutions. Kaupo shares how Estonia is power-coupling across the maritime value chain.

Addressing unresolved challenges of green retrofitting, digital bottlenecks, and cybersecurity—and how Estonia’s €25 million grant for green ship retrofits opens the door for cruise lines and startups to co-create radical solutions.

The episode highlights real opportunities for cruise lines and Estonian innovators to co-create solutions in areas like shore power, cybersecurity, and circular shipbuilding towards a sustainable future for cruise.

This podcast was brought to you by Trade Estonia and the Ministry of Foreign Affairs of Estonia. Funded by the European Union–NextGenerationEU.

Find out more at Visit Trade Estonia

Mentioned in this episode:

This podcast was brought to you by Trade Estonia and the Ministry of Foreign Affairs of Estonia.

About Trade Estonia: Trade Estonia connects enterprises to a dynamic, innovation-driven economy, providing access to global markets. Trade Estonia is part of Enterprise Estonia, a government extension connecting Estonian companies with business partners across the world. Trade Estonia also serves as a gateway for foreign enterprises seeking sourcing opportunities in Estonia, offering e-consulting services and facilitating connections with leading Estonian companies. Discover more at tradewithestonia.com

Visit Trade Estonia

Transcript
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>> Speaker A: From sustainable ship design and retrofitting

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to smart port technologies, Estonia

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leads the way in maritime innovation

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at Seatrade Trade Cruise Global Match to meet

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Estonian companies that make the maritime industry

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smarter or learn

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more@tradewithestonia.com.

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>> Birgit Liodden: Welcome to the Cruise Pioneers podcast by

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tool hosted on Seatrade Trade Cruise

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Talks podcasts.

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Hello, I'm Birgit Liodin, Sustainability

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Ambassador of Seatrade Trade and founder of the Ocean

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Opportunity Lab. In this new series we will dive

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into the pioneering initiatives of cruise lines and

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entrepreneurs who move and change the cruise

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industry. We focus on real life frontrunner

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initiatives and power couples enabling

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crews to move from pollution to

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solution. Get on board our shared expedition as

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we get behind the scenes and explore

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how owners, founders and top

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executives move from vision to

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deployment. Today I am so excited

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to bring into our studio

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Kaupo Lanrant, Estonia's Deputy

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Minister for Maritime and Water affairs at the Ministry of

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Climate. In his role he

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oversees most of the blue economy sectors and water

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management in Estonia. Mr.

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Lannerand previously served as head of fleet for

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the Estonian police on border guard board

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where he managed the biggest government owned fleet.

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He also has extensive knowledge of the maritime

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industry from his experience working on board

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tankers and the world's largest treasures for

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more than a decade. So welcome to

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us. I am so excited to start

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our conversation talking about your

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pioneer commitment.

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>> Kaupo Lannerand: Hello. Great to be here.

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>> Birgit Liodden: So the blue industries of Estonia has

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really stepped up over these past years

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and can you share with us a little bit both

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from Estonia's national commitment

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to sustainability and the pioneer role and include

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a little bit of what makes you tick when it comes

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to this area.

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>> Kaupo Lannerand: My role is actually to

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be the let's say its most strategic position

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for policymaking. So let's

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say the Ministry of Climate where all

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the maritime policy is let's say

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made. It's placed somewhere where

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the maritime sector meets with

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university and also the

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citizens needs meet with others.

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So we are the place where everything comes

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together. and as maritime nation Estonia has

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been very sea focused for many

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years and we

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love the forest and we love the sea as well.

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So we have a lot of companies

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which has grown to be global and

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average Estonian likes to

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sail, they like to go on holiday near the sea

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like everyone else. And of course our

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winters are longer so we cannot compare

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it to Florida, Florida winters. but

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we are still a strong maritime nation and we

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see our strength in strong

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export and this is export of

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knowledge. This is export of high quality

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industry products and other types of

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products. So we can from Estonian side we can

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never compete with let's say South Korea for

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building huge vessels but we are very

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good at building vessels up to 70, 80

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metres which are high level, highly

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automated and highly, highly

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digitalized. And you bring in the

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numbers then Estonian blue economy is

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responsible up to 5% of GDP, national

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GDP which shows how big part it

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plays from our economy.

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And yeah this is maybe for start.

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>> Birgit Liodden: Yeah. And you're known as a country and a

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maritime nation to be very tech savvy. And

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then I wonder about the, the current progress when

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we look at your, your targets from

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Estonia. Can you mention if there are

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specific areas when we look at the sustainable blue

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shift where you are ahead of your

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targets and are there any specific areas that

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you have experienced to be challenging, representing

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bottlenecks? And then of course I'm you know thinking

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of this in also a

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context.

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>> Kaupo Lannerand: Yes, challenges are definitely

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there. when I first bring up the challenges

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then for example we

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are facing

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European Union green deal requirements

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which we have fuel, maritime EU, we have

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maritime ETS for ships bigger than 5,000

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cross tonnage. So we have those regulations, we have

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IMO greenhouse gas strategy coming in and

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we have national targets. So actually we have those three

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sets of targets and to fulfil

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those lot of investments are needed.

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And one example is

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that grid, electrical grid in the

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ports, which a lot of people think that

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okay we are building the ships to be on green

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technology. So basically we just need to re

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retrofit the vessels or build a new vessel. But

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actually from our case the electrical grid

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is challenged because it's

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expensive work to do. And when you have, I don't

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know in the ports where historically

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you have five rope packs vessels, five cruise

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vessels coming in and now you need to bring them

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more on electricity than

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this national electricity grid or this let's

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say regional grid has never been developed

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to, to bring all those massive ships

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to electricity. So this is

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definitely challenging. One is the

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labour wars. we need better

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prepared for green technology, better prepared crew

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members of the ships. And definitely

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the green

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shift is or blue shift for

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blue economy it's it's costing a lot for ship

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owners. So for them it's also

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challenging to push them to make the

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first shift. but we have a Lot of initiatives,

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and lot of pilot projects where as

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government we are pushing the

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maritime sector and supporting them or nudging

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them, to choose the direction to reduce

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emissions and increase the efficiency.

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>> Birgit Liodden: And I mean you tap directly into what

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I see to be like the sore spot of

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almost all the people that I talk with on this pod as

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well. The access to clean energy

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and the current grid capacity issues of

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course is such a huge headache

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for many actors out there. And then of

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course that provides a very exciting

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role for the innovators out there

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all across the different parts of our industry.

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And I know that your country has a great track

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record on fueling the startup

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ecosystem across different industries. And

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I wanted to check in your perspectives on

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what we call power couples where we look

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at the high potential areas and the

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exciting initiatives where large

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organisations, public and private stakeholders

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team up with smaller startups to

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more radically tackle and solve

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these key bottlenecks that we are

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experiencing in our blue society.

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So I wanted to hear where it is that you see

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as specifically good and well

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positioned areas for this power coupling

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between startups and the large

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stakeholders from Estonian perspective.

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>> Kaupo Lannerand: We have a lot of good examples in here. maybe I would

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like to start. This was one of our initiatives from ministry

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also that we have fairly new

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Estonian Maritime Cluster. So Estonian

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Maritime Cluster is let's say a little bit more than

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one year old and it's

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bringing together the maritime

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companies, the big companies which are

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making huge revenues and also the small

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startups into the one system. And ID was

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from the beginning to have big partner for government

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that Estonian companies can join up in

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export markets as well. And sometimes

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smaller ones find through these kind

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of communities like clusters they can meet each

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other. So Estonian Maritime cluster has

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around 60 members after one year as

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companies and already with

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around 2 billion euro of yearly

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revenue. So they have grown growth, they

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had very fast growth in the first year and

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we look them to come together as

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well and they already helped. They were

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our partner with Estonian Retrofit

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and greentech Hub. So basically

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we are like industry, and government,

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working closely and visionizing how

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we can make the changes happen.

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And together with them through Maritime

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Cluster we have prepared this 25 million

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euro retrofit measure so

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to invite ships for example to

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Estonian ports and use our

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industry knowledge to retrofit the vessels.

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And we pay back to the ship owners

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15 to 30% of their investment. So this

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is like those Shipowners who are

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in between, it's a great chance for

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them in between to making the investment decision.

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This should be our nudging, to help

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them to really retrofit the vessels to

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new technologies. Other great example may

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be how industry and big

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players and smaller players are working together

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is Port of Tallinn. between Helsink and

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Tallinn we have this very ambitious green corridor.

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I'm personally big believer of green corridors. I

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think the green corridors are critical for

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really decarbonizing the maritime industry because

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you have to connect the dots because you cannot build

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the infrastructure and all the fuels

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everywhere. You have to start with green

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corridors, tile in Helsinki. Then you go for tile in

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Stockholm, then you have Stockholm, Helsinki Triangle.

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Then you go for for example Rotterdam tiling,

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green corridor and you start to connect those dots.

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You have electricity availability,

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methanol, something else.

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So green corridors are bases. And what we did

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is there was Estonian startup this time

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startup. Now they are top three players called

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Shorlink and Estonian.

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Tallinn Port wanted to bring their

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big rope vessels to

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electricity and they needed

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some supplier for those technologies. And there

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was a startup called Shorlink who is visiting also the

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US with delegation and they made the systems

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ready. And now with this 10

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million passenger traffic flow

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port, now it's using those Shorelink

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devices, ops, systems

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and this helped the Shorelink also to grow

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and now they are really producing

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to Middle east, to

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Europe, to across the world all those ops

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systems and they went to the cruise industry. They

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started to scale up their work. So this is great

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example where this for example national

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owned company, Port of Tallinn M. Let's say we

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are as government 66% owner of this

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port of Tallinn and how we can work

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together and really the green technologies industry

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can also grow. So a lot of, lot of the

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great examples there. And this port

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of Tallinn, it's maybe there is

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smart port solution there used. I don't know. Have

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you Birgit, have you visited port of Tallinn and used the

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smart port? But in the past there was a lot of

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people in the port showing where to go, you need to

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wait in the queue. And now it's completely

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automized. All the systems are interacting

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with each other and you go to port, port, you almost

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don't have any human interaction and you go

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straight away to port the vessel. So

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those are good examples how we can be more

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efficient in all ways.

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>> Birgit Liodden: Yeah. So green corridors and

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the tech revolution. Really. I

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couldn't agree more with your points. I think both on

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the green corridor as a

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model for enabling this

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transition, but also of course utilising the best

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of new tech. Are there any other

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especially interesting companies that you are bringing

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over from Estonia this year?

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>> Kaupo Lannerand: Yeah, we have a

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company called Inspirators and I

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think one of their mottos was to take

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away job from 20,000 engineers or

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something. the idea was that actually they want

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to free up those engineers. A lot of

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engineers are doing work which could be done

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by AI and machines.

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so let's say easy, designs and

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works and they are offering solutions

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where you can really free up this

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workforce and give engineers to do something

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better. So they are coming as well. Port of

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Tallinn is coming as I mentioned, Shorlink and

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and we have this small mini

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cluster called Emmy who has like full

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value offer chain, to retrofit the vessels.

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And I think they have very good value offer

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for retrofitting cruise vessels because they have

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like machine side cover, interior

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side cover. and I think the

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interior is very, let's say it's very

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underestimated part of green transition.

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To give you example, Estonian companies are looking the

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ways, how to reduce emissions together with

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cruise vessel owners and they actually have Estonia

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Valley offered. We have possibility to

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change the interior of cabins, for example

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of cruise vessels and reduce the weight of the

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cabin 200 kilos. So when you

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have cruise vessels of 3,000 cabins,

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you change it with new modern

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materials and you can have

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600 tonnes of less of weight which you are

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carrying. So this 600 tonnes of weight

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total with the 3,000 cabin retrofitting, of course

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beautiful materials, you can also

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reduce your emissions and this is important

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for ship owners to fulfil the regulations. So

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this is, I think what I mentioned is 25

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million euro retrofit measurements coming out by

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Estonia in April. Actually it should come out

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in the time when I'm in US to bring ship

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owners, to nurse the ship owners to be more green. This

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retrofitting can be also part of the

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works and maybe we have big

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innovators coming in. They are called

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src. When I was in Singapore

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last week, they have already

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confirmation from classification

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societies that this technology is great.

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So they are bringing into the US the

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methanol super storage. So this

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is this company actually has solved

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one of the great challenges of retrofitting ships to

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methanol we don't have capacity to build all the

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new ships. We need to retrofit them. That's why we are putting

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our ambitions to there. So what was

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three pillars of methanol to bring

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to retrofit the vessels to Metanov? One is to have

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methanol engines. This is all the

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methanol engines that are coming on the market.

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the production will be growing. other

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was fuel availability. Let's say

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this, you need to have enough

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clients and the investments will be there. This is

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challenging part but you have to

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most probably solve it through green

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corridors through mutual

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contracts. And the third was the

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methanol takes three times more space than

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fossil fuels to get same amount. So ship owner still wants

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to voyage all those same distances. What they

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did before, they need same amount of energy and the

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problem is that with existing technologies they

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can only get one third of the distance. So

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SRC solved it and they have solution

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as I mentioned called metal super storage.

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And this solves everything

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in this regard. So they can take same

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amount of fuel energy on

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board and take in all the methanol. And

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why the methanol is important. I think

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personally that methanol and ammonia

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and electricity will be the main three big

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players in the green fuels in the coming

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years. So I hope

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that all the companies visiting us

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can learn more about them.

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>> Birgit Liodden: I think they have a lot of really interesting

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pioneering initiatives from Estonia to look

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into. And I really love the fact that you guys

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focus so much on the retrofit part because of course and I think

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you also coming from the industry yourself,

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we can't really new build our way into

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to solve this. so, so it's highly

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interesting and also a great challenge for the

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established stakeholder governments and for the small

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startups to find these progressive new

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solutions to work with. Circular economy and

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different type of retrofits that will help our

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industry really move through the right direction

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and deliver both on national and

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European continental ambitions.

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And then I wanted to check in

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with you because now you mentioned a

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lot of the really great initiatives that you

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have where there is a true power couple,

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modus of operandis. So when we

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work with these topics and I think you

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touched briefly upon one of them with the sure

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power thing. But we also ask our

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guests to share with the audience a bit

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about currently unresolved pain points

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where we are looking for specific

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additional area where you have these great

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commitments and where you're really eager

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to see the partnering of cruise

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lines and entrepreneurs for new solutions

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beyond those that are.

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>> Speaker A: Already based in Northern Europe.

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Estonia is the gateway to responsible and

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innovative maritime practises at Seatrade

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Trade Cruise Global Match to meet Estonian

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companies that drive maritime safety,

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reduce emissions and make the maritime industry

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smarter. Or learn

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more@tradewithastonia.com.

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>> Birgit Liodden: Work in progress.

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>> Kaupo Lannerand: It's a great question and I

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can reply with

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with let's say challenge

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and let's say the

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points where we need to improve but also the

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solution. So I am the person of solutions. So

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let's open up the electrical grid was

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challenged. So we are looking ways how to

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support by government also

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those investments and to support industry

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for them to be more ready because the ports are also

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different. Some ports are more

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ambitions. Some ports are like okay we

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can still go fossil for many years and

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when the demand will be there. So so

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some are thinking that the train they see

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train already moving that but they don't start to run it.

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So we tried to get them on board

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as well. other was really to bring the companies

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together. That was in the past problem and

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this one I really took as my

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really personal initiative to bring the maritime industry

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together. So now we have maritime cluster and

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we need to support them growing because we

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are so small country. So to go

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export and go with full value chain and to

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offer the solutions then we need to work

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together then the future labour

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force. This is something where we try

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to support industry and

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universities as well. One of the things

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from government side what I really see

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that we talked about those old startups

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growing and really conquering the

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world. we have more than 10 unicorns

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in Estonia most in it and

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unicorn is more than 1 billion euro of companies.

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so really I would like to see one of

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them in maritime as well.

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And the key word is pilot

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projects by government or together with

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industry. So that is why we are going

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out with procurement to build new fully electric

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ferry we are building

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biomethane multipurpose vessel.

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So those are the possibilities for companies

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to get references as well to

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really grow and learn. For example Estonia

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built first a hybrid petrol vessel in the

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past. So usually

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everybody are focusing to other sectors and

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about pilot projects. What is one of the

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key ambitions? we have a lot of companies like

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Mindchip who was together with me in Singapore as well

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who are building those autonomous vessels

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and Their aim is to take away the work

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from the people when you don't actually need the people.

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So in the maritime you need to, for example you need

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to survey your sea area all the time.

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We are doing it with huge

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manned vessels who are using for example

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fossil fuels. So our ambitions by

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government, again with pilot projects, is to build

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a fleet of survey vessels, autonomous small

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survey vessels and you can have them 10 in line

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to working like in the lines and making the

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survey work much more efficient, less

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emissions and more cost effective.

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So all kind of these projects are

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needed to help. And the other

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is our aim was again the problem

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was we don't know so much what's going around in the

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water. So we are also

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together with industry, making Seawolf

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project where we want to create maritime digital

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twin so we can understand what is happening

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under the water, top of the water. This can be security,

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this can be environment, this can be all

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the systems together. So we are developing this one

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as well. Again this is great chance

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for pilot projects, great chance for references

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and let's see how it ends

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up. because there are sensors there, you

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know, you can detect oil. we

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have big oil threat in the Baltic Seatrade with the Shadow

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fleet and all the substandard fleet.

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And they can really help us to detect the oil

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and react faster, get the evidence.

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and scientists in the future, they don't have

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to go and take the examples

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of the water in exact time. They

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can get the peak data all the time. So

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pilot projects is key I think to

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really make the changes happen from my

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side. And of course one of the things

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what I really look into is offshore wind.

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One moment offshore wind

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was the direction, other moment a lot of

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critics on offshore wind. So now

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again they talk about offshore wind. I can say

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certain, I'm big believer of offshore wind. We

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have 9 gigawatts of potential in here in our

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sea area. So this would be great

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chance for ship fuels to be developed and

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use this, all this excess energy to

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really make those fuels for shipping as well. So

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I hope this one goes well ahead as well.

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>> Birgit Liodden: Absolutely. And I just have to ask, first of all,

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I have to applaud you for the amazing

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initiatives that you're doing in your role for the government.

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And then I also wonder, circling back to

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the, to the grid issue and alternative

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new energy sources. Are you also looking into

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any other ways of expanding your

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grid Capacity with what we call more breathing

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grid structures and finding other innovative

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solutions to gain energy from the

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ocean to support the capacity issues in the

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ports.

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>> Kaupo Lannerand: Yeah, M. I can tell you that

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the forerunner ports are they are

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using already solar panels and

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smaller ports as well. This is going up the

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use of solar energy, wind energy.

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We have one big project for one of our biggest

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ports to use this, to get the heat and

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also the cooling from the seawater.

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So those are expensive projects and it's bringing again

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new challenges because our sea

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floor, one side we have electrical grids, then we

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have all those pipes in the seafloor. So this will bring

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us new challenges and you need to get them working

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together. So we are harnessing that. We

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are harnessing a lot of offshore energy in the future.

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But because the tides in Estonia are not so

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high, so tidal energy is not in the

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topic. We have a lot of bad weather,

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so we should use more wave energy.

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But this is not, let's say not in the

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focus at the moment. I really see that

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this wave energy we are looking into these

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smart floating platforms which are part

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of the Seawolf system, what I mentioned. So

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I have seen the solutions where the wave

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energy is loading the batteries

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on board of the systems at sea. If this really

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works, I will be interesting to know it more.

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But, but yeah, at the moment

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those are the main directions.

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>> Birgit Liodden: Yeah, I mean the wave energy has been, you know,

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under, under invested and still early.

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But I think for all of us who are really ocean

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nerds, it's such a

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magical perspective to, to look at. Like

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when and how will we truly be able to take

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out all of the boundless,

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amounts of energy from the waves that we're sailing

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on. And then of course you touched upon

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it, in the whole perspective of

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digitization and efficiency. We

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are facing as an industry both now

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and for the time ahead, a huge

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shortage of the access to talents because

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we, we compete with so many other

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industries and very many young

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people and experts out there don't

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necessarily look to the ocean and maritime sector and

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cruise when they are making their career

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moves. personally I have a huge

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belief in when we bring in clean

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energy transition, when we bring in innovators,

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kind of new faces and new role

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models and more exciting

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solutions that are brought out to younger people

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out there that will also help making an

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impact. While we'll also have to find smart

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solutions so that we can utilise people

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and their capacities better than what we have done.

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But we have our last last

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insight that we ask from, from all of our guests

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that is focusing on tomorrow's talents today. And I know

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you guys are working a lot on this because we

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do need so many great people and brains

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and hands on board with us to build this future of

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cruise. And I would love to

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hear if you can share your personal

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hack or advice to talents who

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are listening in existing industry colleagues.

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what do you see as ah kind of

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capabilities and skill sets that

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is truly needed to be part of building

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this cruise. Pioneers and the

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sustainable clean transition of the maritime sector

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onwards.

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>> Kaupo Lannerand: This challenge is hard because we all face

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it especially while the welfare is very

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good, especially those countries. And they are fulfilling the

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gap with at the moment around the world with getting

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the talents from other countries.

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but there has to

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be other solution for that. And

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it's like always in the life the answer

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lies in a combination of different things. What

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we need to do. One of the ways

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to bring in more talents still bring them

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into the maritime industry. I think it's

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clear career path and potential.

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So at the moment for example a lot of tech officers,

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engineers, electronical officers, a lot

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of them don't want to go to, to the sea anymore. Actually

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they would like to sail 10 to

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20 years but they see that they

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cannot. They don't want to work there until end of the

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day. So one of the ways

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is really to show them

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if they go to learn in academy then

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they see that there are let's say two

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career options or three career options. When

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they, when they study they already prepare

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to work ashore as well that they always know

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that the knowledge and the

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diploma what they get they will. It helps for

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them if they want to come to work ashore. There

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is clear I don't know two, three

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scenarios where they can be technical

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management. They can really go

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for green technologies industries. So this

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is really important because I'm myself with tech

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officer background. I never planned to come to work

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as vice ministers as well. So

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this just happened like That so

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they need to know more about that. Second

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is to catch them as young as possible.

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It's hard to get somebody to love sea

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and waves and when they are already

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18 years old. We need to catch them earlier.

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So that is why our focus

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are. We have around 237

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ports in Estonia. Most of them are smaller one as

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well. So One of the things what we are doing

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and solution for that as well is to

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bring young people to ports. Is it

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recreational activities, trainings, is it sailing?

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Is it somebody some other hobbies to

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get them to the port and get them

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to involve their hobbies

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which is part of the maritime. And

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we need to infect them with maritime.

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Exactly. as early as possible.

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>> Birgit Liodden: So this is basically

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racing and growing ocean lovers.

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>> Kaupo Lannerand: Yes. So get them as

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young as possible to the port,

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provide potential, bring them

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in and these are the ways definitely do

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it. And the maritime industry imago

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and the great

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potential behind it because what I have in

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my role has done also that

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When I came to the ministry it seems like

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everybody talked that it's you know maritime

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industry or maritime sector. Generally it's ship

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and port but this is much more. It's

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about growing the seaweed. It's

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recreational activities. It's offshore

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wind, we don't know, maybe it's even

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mining in the future. it's all the IT

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solutions for maritime all those

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green technology producers. Shipbuilding

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retrofitting is completely

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other parallel world of shipbuilding.

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So there are so many, it's so

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wide part of our economies especially maritime

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nations that to really to make them understand

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that into how big ecosystem they are

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entering if they are choosing the maritime. So

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this awareness of the scale

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of it as well.

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>> Birgit Liodden: Oh I definitely agree with you And I think

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your journey as well is so interesting. To move from like

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a clear red sea and a deck of officer and then

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becoming a vice minister. I think that's also something that

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really shows the opportunity space out

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there. And based on your own journey,

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Kaupo, what do you think has been kind of

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the personal

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skill in you that has

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enabled this really exciting

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journey that could be inspiration for

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younger talents out there.

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>> Kaupo Lannerand: What drives me? I don't know. People have to

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find what drives them. Somebody are doing it for money,

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somebody is doing for the hobby.

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If the hobby is the work. I know a lot of people in our

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industry who is. It's like hobby their work. So this

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is the best solution. One of the most

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interesting also when I was head of coast car fleet

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this was very interesting time as well.

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I received huge in this crazy

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geopolitical world where we are living at the moment,

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and so many things happening around the world. So I

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think it's great that I worked one moment in my life as

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head of CoastCorflight because this really helps to

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prepare for the crisis as well, but for

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me, I think that what drives me the

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most and people have to find

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it, is, to make big

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changes happen. So I really, I

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enjoy. Is it consolidation of government

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on fleet or big initiatives, so

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really that you can sit on the couch 20 years

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later, drink your coffee, and think

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that I have made, together with my team and together,

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maritime sector, some big changes happen. So this is

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what drives me.

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>> Birgit Liodden: I think that's a great end to our

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conversation today. And, I'm really looking

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forward to catch up and, really

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explore all of the amazing stakeholders that are

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gathered from Estonia for sea trade.

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And thank you so much for taking the time to

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sit in with us today. And, let's stay tuned

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on all of the exciting stuff going on from the

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Estonian maritime sector. So thank you.

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