Annual report 2022 - Port of Turku Ltd

ANNUAL REPORT Port of Turku 2022

A challenging year amidst international crises

The Port of Turku started year 2022 with great expectations, and the expectations were partly realised. As the pandemic was fading, the passenger numbers began to rise at the beginning of the year and finally reached the pre-pandemic level. Cargo transports also started at the rate of the previous year, but Russia’s invasion of Ukraine and the decrease of cargo capacity on our Swedish route cut down the cargo volume transported through the Port. The goals were nevertheless reached regarding the finances of the port enterprise by adapting and enhancing the operations, the goal of which is to prepare for the challenges of the current year 2023. The global political situation remains unstable, which makes the outlook for the future uncertain.

Passenger traffic recovered, cargo transports shrank

The positive development of the passenger traffic was strengthened by the new vessel Viking Glory introduced on the route between Turku and Stockholm. The popularity achieved by Viking Glory, which started regular service at the beginning of March 2022, is indicated by the fact that during the first year it carried

The goals were nevertheless reached regarding the finances of the port enterprise by adapting and enhancing the operations, the goal of which is to prepare for the challenges of the current year 2023.

over one million passengers. That way it helps to compensate the decrease in departures on the route, as Tallink Silja leased out its ship Galaxy from September 2022 on for temporary accommodation in the Netherlands. The effects of the leasing of Galaxy were greater on the Port’s cargo transports, because it removed a large share of the capacity of unit cargo transports to Scandinavia which are important to the Port. On the whole, the volume of cargo transports was also affected by the consequences of the war in Ukraine for international trade.

Ferry Terminal Turku proceeds towards concrete implementation

The global political and economic conditions with the energy crisis are also reflected in the Port of Turku. In spite of that, the Port’s key development projects were actively forwarded in 2022. The architectural competition for the Ferry Terminal Turku project was resolved in May, and the winner was a proposal called Origami designed by PES-Architects. The planning of the new passenger terminal continued in co-operation with the winning team and the future users with the goal to improve cost-efficien -

Image: PES-Architects Ltd

According to a market study conducted by the University of Turku, e.g. ship traffic between Turku and Gdynia, Poland is of interest to both cargo customers and tourists. Negotiations are continuously held on opening new connections with several shipping companies.

cy, use of space and functionality, taking into account the increase in building costs and the changes in ship traffic. In the first phase of the project, the construction work of the berths will start in autumn 2023. The entire Ferry Terminal Turku project including the new terminal will be completed at the turn of the year 2026–2027.

Looking steadily towards the growth potential

The Port of Turku has the capacity to respond immediately to significant growth of transport volumes. The Port’s cargo transport services would be enough to receive up to three times the current number of vessels, and there is also room in the passenger harbour for vessels operating new connections. According to a market study conducted by the University of Turku, e.g. ship traffic between Turku and Gdynia, Poland is of interest to both cargo customers and tourists. Negotiations are continuously held on opening new connections

with several shipping companies, and the goal is to make decisions in the near future despite the global conditions.

Thanks to everyone for their stamina

The past year eventually turned out to be different from what we anticipated. As the horizon seemed to be clearing, the world jumped from one crisis to another, which challenged both the Port’s own organisation and our partners to respond to the changed situation. By acting together we managed to avoid the worst pitfalls, for which I wish to extend my warm thanks to the Port’s personnel, all port operators, and the decision-makers of the City of Turku. Together we are stronger also in 2023.

Erik Söderholm Managing Director Port of Turku Ltd

Port develops by listening to its customers

The basis of efficient port operations is formed by connections, people and infrastructure. In the Port of Turku, these three factors come together into a reliably functioning system, each area of which is continuously being developed while hearing what the to the co-operation parties have to say. At different stages of the development work, the needs of all users of the Port as well as the goals of Turku’s urban development and environmental sustainability are taken into account.

The Port’s operating strategy is based on supporting the customers’ business operations by generating added value and creating opportunities for new business operations.

Fast connections at sea and on land

In maritime transports, the Port of Turku’s regular liner services connect Finland to both Scandinavia and Continental Europe. Our routes destined to Sweden and the other Nordic countries are complemented by ship connections to Germany and England which also enable a flexible transfer to ocean lines. In addition to cargo transports, our traffic to and from Sweden also serves leisure travellers, and our goal is to open a passenger service to Poland as well within a few years. Thanks to the location of the Port, the connections to all destination ports are

fast and smooth and, consequently, also cost-efficient.

The Port of Turku is part of the TEN-T transport network that links different parts of the European Union to each other. On the TEN-T map, the Port of Turku is part of the Scandinavian–Mediterranean transport corridor which is a key transport route of the core network that connects North and South Europe to each other. In addition to international connections, the Port provides efficient connections on the most important routes within the Finnish trunk road network. Exports and imports of trade and industry are carried smoothly along the highways to and from the Port, and also by rail, if required. Combined with the Port’s short turnaround time, the good connections ensure efficient distribution of products and quick deliveries to recipients in different parts of Finland.

Expert services as a strength

The Port of Turku surveys its customer satisfaction regularly. The results for the annual survey in 2022 indicate that overall satisfaction with the operations of the Port is at a high level: up to 94 per cent

of the respondents give a good rating for the functioning of co-operation, and onethird are very satisfied. Most thanks were received for the staff’s expertise, willingness to serve, flexibility, efficiency, as well as information services and maintaining contacts. The customers value the Port of Turku as a reliable, flexible and sustainable partner which reacts actively and quickly to the customers’ needs and with which common solutions are easy to find.

In addition to the Port’s own staff, the customers of the Port of Turku are served by a number of experts of their own specialised fields. By utilising their expertise, a customer of the Port can build a service concept to suit its own needs, including sea and land transports, load handling, and warehousing.

Functioning infrastructure ensures efficiency

The Port of Turku’s infrastructure responds to the requirements of efficient port operations in terms of both cargo transports and passenger traffic. There is enough service capacity for significant growth of transport

In addition to the Port’s own staff, the customers of the Port of Turku are served by a number of experts of their own specialised fields.

volumes, regarding ro-ro transports and project shipments of the industry in particular. The Ferry Terminal Turku project will completely update the passenger harbour and generate opportunities for growth for new players in passenger traffic as well.

The services provided by the Port to ship transports are complemented by diverse warehousing and terminal services. The Port of Turku and the port group company Turku Free Zone Company have plenty of outdoor storage and warehouse space in the port area and in its immediate vicinity. The capacity of short-term and long-term warehousing is further increased by the terminals and distribution hubs of large logistics companies near the Port and by the Turku Ring Road.

The Port of Turku is very advanced in the use of automation and digitalisation. An automated mooring and unmooring system of vessels is used in the passenger harbour, which enhances the use of time during the short stay of the vessels in the port and also decreases emissions. In the Port’s opera -

tive functions, digital services are utilised, for instance, in traffic guidance and security control of the Port. Electronic means and the internet have replaced paper in the flow of information.

Sustainable operations for the environment

The Port of Turku’s environmental work is methodical and is based on practical measures for reducing the environmental impacts of the port operations. The operations are guided by the Port’s certified environmental programme, the focus areas of which are reduction of the loading of waterways and emissions into air as well as energy saving. The goal of the measures aimed at climate change mitigation is to reduce emissions into air by 40 per cent during the period from 2008–2025, by which the Port supports Turku’s goal to become a carbon neutral city.

The Port aims at minimising the impacts on waterways from its own operations and

Today, the union of the Port and the City is again growing stronger, as the urban development brings residential areas and experiences ever closer to the port operations.

ship traffic e.g. through disposal of dredging masses on land and by offering the vessels calling in the Port an opportunity to drain their waste water in the port. In addition, the Port participates in different joint projects concerning environmental issues together with the other port operators, and grants its customers vessel charge discounts on environmental grounds as an incentive. Today, co-operation in environmental issues is also a significant competitive advantage towards those who make decisions on logistics routes and solutions.

Home port for inhabitants of the city and visitors

The Port has been an essential element of the city of Turku for centuries, and has conveyed continental ideas, manners, culture and various new products and goods to Finland. Today, the union of the Port and the City is again growing stronger, as the urban development brings residential areas and experiences ever closer to the port operations.

The most significant changes in the port area will take place as the plans for the Linnanniemi district to be built near the Turku Castle are proceeding. The gradually built district will become a round-the-year centre of urban culture that will attract both inhabitants of the city and visitors by offering a wide range of services, seaside views and unique sights, such as the Turku Castle and the Museum of History and the Future, planned to be built planned in the area.

The new Ferry Terminal Turku will play an important role in creating the attractive pull for the whole district. The impressive architecture of the new passenger terminal will welcome ship passengers from near and far to the vibrant city life in 2027.

Key events of 2022 in the Port of Turku

FEBRUARY

28.2. Viking Amorella's more than 30 years of service on the Turku-Stockholm route came to an end.

MARCH

1.3. Viking Glory started operating on the Turku–Stockholm route.

17.3. Together with Finnish ports, we donated 13,000 euros to Ukraine's emergency aid.

APRIL

28.4. Port of Turku Shipping days

25.–28.4. Seatrade Cruise Global, Miami USA

MAY

3.5. Cruise ship Le Champlain

17.–19.5. We participated Breakbulk Europe trade fair in Rotterdam with TurkuSteve and Turun Vapaavarasto.

23.5. Smart, environmentally friendly smart trash cans were installed in the port.

24.5. ORIGAMI, designed by PES Architects, was selected as the winner of the joint terminal architecture competition.

31.5. Cruise ship National Geographic Explorer

JUNE

1.–2.6. We participated in the NaviGate fair in Turku.

4.6. Cruise ships Deutschland and Vasco da Gama

5.6. Cruise ship World Voyager

6.6. The Turku City Council decided on the alignment of the new harbor railway from the direction of the Pahanniemi bridge.

11.6. Cruise ship MS Europa

14.6. Cruise ship Vasco da Gama

20.6. Cruise ship Le Champlain

30.6. Cruise ships Amera and World Voyager

Kuva: PES-Arkkitehdit Oy

JULY

4.7. Cruise ship Artania

10.7. Cruise ship Star Legend

11.7. Cruise ship Vasco da Gama

16.7. Cruise ship Artania

22.7. Cruise ship World Voyager

AUGUST

3.8. Cruise ship Vasco da Gama

7.8. Cruise ship MS Europa

13.8. Cruise ship Amera

31.8. Cruise ship Vasco da Gama

SEPTEMBER

5.9. Cruise ship Amadea

11.9. Tallink Silja's Galaxy's last departure from Turku to Stockholm before moving to Holland as a houseboat.

OCTOBER

11.10. Ferry Terminal Turku – terminal planning started.

NOVEMBER

3.–4.11. Maritime Fair Aboa Mare, Turku

DECEMBER

8.12. We participated in the collection of electrical and heating equipment to help the city of Kharkiv and its residents.

Key figures 2022

OPERATIVE FUNCTIONS

PASSENGER TRAFFIC, million passengers

Number of passengers doubled in a year

The Port of Turku is the leading harbour for passenger traffic between Finland and Sweden, and the second biggest passenger harbour in the country. The most important attraction factors on the route are the vessels of the highest standard in the Baltic Sea and their first class services including entertainment programme, and the unique archipelago vistas on the route. In terms of schedule, the route is ideal both for those going to a 24-hour entertainment cruise and travellers heading to Sweden and Continental Europe with their own car.

For the Port’s passenger traffic, year 2022 meant a return to the volumes before the pandemic. During the year, the number of passengers doubled compared to 2021 and stood at 2.7 million. Demand pent up due to the pandemic was directed at Turku especially by Viking Line’s new flagship Viking Glory which started service between Turku and Stockholm at the beginning of March. By January 2023, one million passengers

had travelled on the ship, which helped Viking Line to register an all-time record number of passengers on the Turku–Mariehamn–Stockholm route in summer 2022.

The development of the passenger volume in the Port also continued positively in the latter half of the year, although Tallink Silja rented its ship Galaxy for temporary accommodation services in the Netherlands in September. At the same time, Baltic Princess was transferred to offer a new cruise product with Kapellskär instead of Stockholm as the destination port in Sweden. The 22-hour cruises departing from Turku every evening focus especially on entertainment and popular artists.

Regarding cruise traffic, the year was record-breaking in Turku with a total of 21 vessel calls. The exceptionally high number of vessel calls resulted from the war in Ukraine, due to which the cruise liners that usually called in St. Petersburg had to look for other destinations. The Port of Turku and Visit Turku handled the services of cruise liners and their passengers effi -

ciently, which also improves Turku’s reputation as a cruise port. In connection with the future changes of the passenger harbour, Viking Line’s current terminal is planned to be turned into a cruise terminal, which will also allow for marketing Turku as a turnaround base for cruises.

Cargo transports decreased as capacity was cut down

The Port of Turku is the number one port for cargo transports between Finland and Scandinavia that also offers a fast and competitive route via Germany to Continental Europe, and a functioning connection to ocean lines. The Port’s regular and frequent liner services enable flexible transport schedules and consequently improve the delivery performance of products. The majority of the Port’s cargo transports comprise of unit cargo which is operated with modern efficient ro-ro vessels by the key shipping companies in the Baltic Sea and the leading port operators. Alongside unit cargo, the Port of Turku focuses on project shipments of heavy industry which require precision and safety in both load handling and intermediate warehousing.

In 2022, the total volume of cargo transports carried via the Port of Turku stood

at slightly over 2 million tonnes which is around 15% less compared to 2021. The majority of the decrease resulted from unit cargo transports which was affected above all by the reduction of capacity between Finland and Sweden. Tallink Silja’s ship Galaxy was pulled from the route in September, which reduced the number of departures from Turku to three per day instead of the previous four. The removed capacity was partially replaced by Viking Glory which started operations in March and offers around 600 lane metres more than its predecessor m/s Amorella. The total number of the trucks and trailers passing through the Port in 2022 was around 103,500, while in the previous year their number exceeded 123,000.

The Port’s other cargo transports continued along the established lines. Transports to Travemünde are regular, and Finnlines has two weekly departures to Germany. Mann Lines sails weekly from Turku to Harwich and calls e.g. in Bremerhaven and offers a smooth connection to ocean lines via Rotterdam. Baltic Line’s weekly liner service links the Port of Turku to the markets of Norway, Denmark and Poland. In addition to those, the Port of Turku actively negotiates on opening new connections to Baltic Sea ports as well as further afield to the rest of Europe. The negotiations have

proceeded furthest concerning a liner service to Poland, on which the cities of Turku and Gdynia signed a letter of intent already in 2019. After the pandemic the discussions have progressed, and different shipping companies have expressed their interest in co-operation. The interest was strengthened further by a study conducted by the University of Turku which showed that the route has definite market potential. The profitability of the route would be based above all on cargo transports which would be complemented by passenger traffic.

Demand for warehouse services continues to grow

The Port of Turku offers plenty of functional premises for both long-term and shortterm warehousing of different products. The customers have at their disposal more than 800,000 square metres of outdoor storage area in the vicinity of the quays and around 100,000 square metres of indoor storage space in the port and the adjoining logistics area. There are solutions e.g. for

intermediate warehousing of large industrial components as well as the storage needs of temperature-regulated products. In addition to the warehousing and distribution services, the different port operators provide various added value services ranging from the finishing of products to services related to importing of cars.

The degree of utilisation of the port enterprise’s own warehouse space was continuously good and the rental business is still growing. As a response to the growing demand, the Port’s goal is to use the Pansio Harbour more as a district for logistical services in co-operation with potential partners. To enhance customer service, we recruited a new Customer Account Manager at the end of 2021 to manage the matters related to space rental.

Port of Turku’s subsidiary Turku Free Zone Company reached a record-high volume in 2022. The company’s turnover rose to 3.5 million euros, up by 25 per cent on the previous year. During the year, four new shelter halls were built for the Free Zone

AVERAGE VESSEL NET TONNAGE, million net tonnage

TRUCK TRAFFIC, units

Company, three of which were implemented as the company’s own investments and the fourth in co-operation with the Port of Turku. The new halls increased the company’s warehousing capacity by a total of 11,000 square metres.

In addition to diverse warehouse space, Turku Free Zone Company provides its customers with advanced logistics services, including, among other things, outsourcing of 3PL and warehousing, logistics solutions for online trade, and tax-free warehousing services for the imports of alcohol.

In 2023, Turku Free Zone Company will be investing in further development of its internal quality and processes. Thanks to the investment programme of recent years, the company’s systems and structures are in excellent shape, which enables focusing on improving the operations for the benefit of the customers.

Ferry Terminal Turku project entered a new phase

The preparations for the biggest investment in the history of the Port of Turku entered a new phase. Ferry Terminal Turku is a joint project of the Port of Turku and shipping companies Tallink Silja and Viking Line for the development of passenger traffic. The goal is to build a new joint passenger terminal area for the use of the shipping companies. In addition to the joint terminal building, the project involves quay structures, including passenger skyways and bridges, and a joint field area with traffic arrangements. The Ferry Terminal Turku project also involves the EU-financed Ferry Port Turku project which plans measures for improving the infrastructure, logistics and safety of the FTT project.

The winner of the architectural competition arranged on the designing of the new

GOODS TRAFFIC, million tonnes

passenger terminal was chosen in May. The jury chose as the winner the proposal named Origami by PES-Architects which serves as the basis for the planning work that started in November. The agreements with the special designers of the terminal building were made late last year, and the project management will be handled by Ramboll CM Oy.

Due to the rise of the steel price and building costs caused by the war in Ukraine, a decision was made to re-schedule the Ferry Terminal Turku project, and at the same time some amendments were made to the original plan. The commencement of the investments was postponed, the scale of the terminal building was adjusted, and the building of a new pier was discarded. The planning of the outdoor field area will continue on the basis of the port’s railway alignment decided on by the City of Turku in the summer. One goal of the re-scheduling is also to synchronise the schedules of the major projects in the entire Linnanniemi district, including the building of the Museum of History and the Future.

The construction of quays is due to start in autumn 2023 on Tallink Silja’s future quay site, after which the shipping company’s current berth will be updated for use by Viking Line. The planning of the former is in progress and will be completed by June 2023. The planning of the second berth will continue once the plans from the first one have been completed, and is tentatively due for completion in September 2024. The berths will also be available to any new shipping companies within the framework permitted by the schedules of Tallink Silja and Viking Line. The construction of the quays will be implemented with focus on ensuring the smooth flow and safety of daily traffic in the passenger harbour.

The building schedule of the new joint terminal is linked to the approval of the change of town plan for the area. Tentatively the town plan will gain legal force in June 2023, which allows for arranging competitive bidding for building in the latter half of the year. According to the new schedule, the terminal project is expected to be completed at the beginning of 2027.

 Import  Export

SUSTAINABLE PORT

Expertise of the whole organisation lies at the core of corporate culture

Port of Turku is a service-sector company the success of which is based on the ability and willingness to serve provided by the expertise of the personnel. The customer survey implemented in 2022 confirms that the customers also consider those to be the most important factors in terms of customer satisfaction. In the survey, most thanks were received for the staff’s expertise, willingness to serve, and flexibility. The customers are pleased with the co-operation with vessel services, marketing and communication, and the Port’s management in particular. Overall satisfaction with the operations of the Port is at a high level, as up to 94 per cent of the respondents give a

good rating for the functioning of co-operation. Thanks for the results of the survey go the whole personnel.

Initiated in the Port of Turku in 2021, the change of the corporate culture proceeded to practical measures the goal of which is to enhance the operating processes and strengthen the staff’s expertise to respond to the needs of the port of the future. The change of the culture strategy ranges from the development of leadership to strengthening and diversification of expertise and practical professional skills. The tools used also included development discussions held with the employees as well as training, including water work card training completed by the Operative Department.

The charge also involves the new organisation structure that entered into force at the beginning of 2022 and in which the Port’s vessel services and maintenance services were concentrated to one unit under the Port’s Operative Services. The goal of the change is to condense and strengthen internal co-operation and also increase the flexibility of customer service. At the same

time, maintenance switched to working in two shifts. During the year, a new HR administration system and a new internal information channel were introduced.

Alongside the development of expertise, the focal points of the Port’s HR policy include looking after the well-being of the employees. The Port’s new health care partner from the beginning of the year is Mehiläinen, and the agreement made with them is more comprehensive than usual, offering as a new benefit compensation for dental care, too. Other key personnel benefits include exercise and culture benefits, Föli public transport cards and company bicycles which have been received well.

Working capacity maintenance activities were restarted after the pandemic calmed down, and e.g. two personnel cruises were arranged for the staff, the goal of which was both to offer recreation and strengthen the team spirit.

Port of Turku Ltd had on average 53 employees during the financial year. The number of permanent employees in the parent compa-

ny at the end of the year was 48, around half of them in the Port Administration. Change negotiations were held in the Port in late 2022 due to one of Tallink Silja’s ships being pulled from traffic. The negotiations were part of a cost savings package in a new situation in which transports to and from Sweden, important to the Port’s economy, fell by 25 percent. As a result of the change negotiations, six people were made redundant in the Port’s administration organisation. 4 persons retired on pension from the port enterprise in 2022. At year-end, the Group had a total of 67 permanent employees.

Energy use was enhanced as part of the environmental programme

In all logistics, attention is increasingly focused on decreasing the environmental impacts of transports and activities related thereto. In addition to reduction of emissions and energy consumption, measures for protecting sea nature from the adverse effects of transports are sought and implemented to a greater degree.

Healthy and well sea nature is also one of the key goals of the Port of Turku’s environmental programme that extends to 2025,

EMISSION INTO AIR FROM PORT OPERATIONS, CO2 [tons / year]

and it is targeted by decreasing the burden of port operations on the waterways. The most important decision of recent years for protecting sea nature was made in 2019 when the Port of Turku together with the City of Turku decided to discontinue the disposal of dredging masses in the sea and transfer to disposal on land. In accordance with the decision, the first disposal on land started in late 2022 when masses from the dredging of the Perno fairway leading to the Meyer Turku shipyard were placed in the Lauttaranta district on Hirvensalo island. Regarding maintenance dredging to be carried out in the future, new locations for disposal of masses on land are also being sought, one option being to build a disposal pool in the Pansio Harbour. The need for new disposal locations is increased by the maintenance dredging required by the shallowing of the River Aura and the port area, and an application for them is pending in the Re -

gional State Administrative Agency.

The environmental programme also aims at climate change mitigation as part of the carbon neutral Turku city area. In 2022, the greenhouse gas emissions of port operations were reduced e.g. by the new ship Viking Glory replacing m/s Amorella on the route between Turku and Stockholm. The carbon dioxide emissions of the new vessel are up to a quarter lower compared to Amorella, although its passenger and cargo capacity is much bigger.

The emissions measurement system changed during 2022 and the figures for 2022 were calculated according to the new system.

The Port’s goal is to decrease emissions into air by 40 per cent in the period from 2008–2025, and in that respect the Port has

Due to the coronavirus pandemic, Viking Line’s ship Gabriella and Tallink Silja’s Silja Serenade suspended their service on the Helsinki–Stockholm route and were transferred to berths in the port of Turku. The carbon dioxide emissions of those ships can be seen as a peak in the total emissions of the port area.

20182019202020212022

GRANTED ENVIRONMENTAL DISCOUNTS, euro

taken anticipatory measures e.g. to provide shoreside electricity to ships.

More efficient energy use has become increasingly important for both environmental and cost reasons as a result of the energy crisis caused by the war in Ukraine. The Port of Turku has reacted on it e.g. by lowering the level of area lighting, without compromising safety in the port area, though. At the same time, heating has been decreased in premises where temperature can be lowered, and new electric cars were bought for the Port. Energy efficiency is followed through metering, which will help to find potential places for savings.

Importance of preparing was emphasised in safety work

Safety plays an important role in the Port of Turku’s customer service. To ensure everyday activities, occupational safety and the protection of passengers, cargo

and the Port’s infrastructure, the Port continuously carries out development work within its own organisation and with the other port operators as well as different authorities.

In addition to the gradually fading pandemic, year 2022 was characterised by Russia’s invasion of Ukraine that started in February. Switching from one crisis to another strengthened the need to develop further the Port’s preparedness for the threats of both today and tomorrow which had arisen already during the pandemic years.

The Port of Turku is defined a critical port in terms of Finland’s emergency supply, which requires a high level of preparedness for various disturbances and exceptional conditions. For the prevention of any exceptional situations and for actions during them the Port has drawn up clear contingency plans that are compatible with the Port’s own safety programmes and those determined by the international ISPS code. The programmes have been audited

and are reviewed regularly. In addition to conventional threats, the Port’s safety programmes also take into account cybersafety regarding which the key objective is to keep the Port’s critical systems protected 24/7.

The Port of Turku is part of the National Emergency Supply Agency’s Port Pool which supports the preparing of ports critical in terms of emergency supply. The forms of co-operation include, for instance, various exercises that are used to develop the cooperation between different authorities and other parties, flow of information between the participants, and management at exceptional times. In relation to that, the Port participated in September in the Aurora22 major exercise that covered all of Southwest

Risk management starts with identifying different external and internal risks and preparing for them. Identification of risks is based on a systematic method and forms a part of the planning and follow-up of operations.

Finland. In addition to other safety threats, the exercise focused on the prevention of powerful information operations.

As part of the Port’s safety programme, an online training package focusing on safety issues was implemented during 2022. In addition to own personnel, training was offered to other operators in the port which received it well. By extending safety training as broadly as possible in the port it is possible to ensure the smooth flow of co-operation in any exceptional situations.

Risk management is part of the Port’s operations system

The Port of Turku’s risk management supports the reaching of the company’s strategic and business goals and ensures the continuity of operations also in changing circumstances. Risk management starts with identifying different external and internal risks and preparing for them. Identification of risks is based on a systematic method and forms a part of the planning and followup of operations. The responsibilities and methods of risk management are determined in the Port’s operations system.

The most important goals of risk management include ensuring the continuity of vessel traffic in the port and securing the needs of port operations in the development of the city. Various restrictions on vessel traf-

fic relating to e.g. environmental questions, and the building of new residential areas near the port may have a negative effect on the Port’s operating prerequisites. The great significance of the port operations to the city, both concretely and in terms of images, decreases the risks resulting from city planning, and the continuous development of the environmental soundness of vessel traffic defends the Port’s position at the heart of seaside city Turku.

From the financial point of view, Port of Turku Ltd’s business operations have remained stable also in the exceptional times of the past few years. In 2023, the biggest risks are presented by the consequences of the war in Ukraine and the quick rise of the interest rates which may affect, for example, the proceeding of the Port’s investments.

The generation of the result and the realisation of the budget are followed continuously, and any deviations are reported to the Board of Directors monthly during the financial year, and to the City of Turku’s Concern Section and the persons responsible for supervision during the financial year, in accordance with the decision of the City Council.

PORT'S ECONOMY

The entire Port Group recorded good financial performance

Port of Turku Ltd is a limited liability company wholly-owned by the City of Turku. The company operates in the maintenance of the port infrastructure and other service and rental business related thereto. The Port of Turku Group comprises of parent company Port of Turku Ltd and its subsidiary Turku Free Zone Company Ltd. Turku Free Zone Company Ltd is a warehousing and logistics company that specialises in imports and exports with customs warehouse I status in its entire area. The company operates in free zone storage and warehouse logistics.

The Port Group’s turnover for 2022 stood at 27.8 million euros, and operating profit amounted to 4.9 million euros. The good performance was affected by the recovery of passenger business nearly to the pre-pandemic level and the continuing high demand for logistics warehouse services. Turnover of parent company Port of Turku Ltd rose clearly on the previous year to stand at 24.4 million euros, up by 10.9 per cent compared to 2021. Turnover of the subsidiary Turku Free Zone Company Ltd increased as a result of investment and development projects by 23.9 per cent to almost 3.5 million euros.

The Port Group’s investments for 2022 totalled 5.3 million euros. The most important investments were the planning work related to the Ferry Terminal Turku project,

and the new light-structured warehouse built in the Pansio area.

Uncertainty characterises the outlook for 2023

The outlook for the global economy in 2023 is uncertain. The war in Ukraine and high inflation are expected to have a negative impact on the company’s financial performance. The reduction in the total cargo capacity on the Turku–Stockholm route will decrease the company’s total cargo volume by around 15 per cent compared to 2021. The passenger volumes are expected to remain at their current level.

A new decision was sought from the owner for the overall financing of the FTT project in early 2023. The company had to interrupt the project due to increase in material and financing costs and Tallink Silja’s morning ship that was pulled from the route in September. The owner approved the new proposed financing package, so the building can be started in the latter half of 2023. The project is expected to be fully completed in 2026–27.

The outlook of the subsidiary Turku Free Zone Company Ltd for 2023 is favourable, although the energy crisis and inflation will considerably affect the goods flows of customer companies and prices. After a year of strong growth, the company is expected to continue to grow profitably.

Balance sheet PORT OF TURKU Group

PORT OF TURKU Group

PORT OF TURKU Group Profit and loss account

PORT OF TURKU Group

Statement of source and application of funds

Balance sheet PORT OF TURKU LTD

Balance sheet PORT OF TURKU LTD

PORT OF TURKU LTD

Profit and loss account

PORT OF TURKU LTD

Statement of source and application of funds

Port

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