Loiste 1/2022, News from Port of HaminaKotka

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LOISTE NEWS FROM PORT OF HAMINAKOTKA 1/2022

Review of 2021 at the port Impact of warfare by Russia on the operations of Port of HaminaKotka Ltd p. 3

International cruise season to start soon p. 4


NEWS FROM PORT OF HAMINAKOTKA 1/2022

Year 2021 at the Port of HaminaKotka was fairly good despite a small drop The year 2021 at the Port of HaminaKotka was still overshadowed by the coronavirus pandemic, but the impacts of the pandemic on the Port of HaminaKotka were actually rather small. A total of 14,574,247 tonnes of goods were carried via the Port of HaminaKotka last year, meaning a decrease of 1.8% on 2020. The year 2021 was quite good in other respects, but the transport of liquids experienced challenges in both imports and exports. However, the situation with liquid carriage improved towards the end of the year. Moreover, the global disturbances in container transport and a shortage of containers had varying effects on the transport volumes almost throughout the year. Towards the end of 2021, strikes and other labour market action in the Finnish wood-processing industry reduced the transport volumes at the Port of HaminaKotka. The total volume of export goods was 3.2% smaller than in 2020. Negative figures were

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reached in liquid bulk (-27.9%) and in categories affected by transport for the gas pipeline project still shown in the figures of 2020: general cargo (-18.2%) and other goods (-50.2%). On the other hand, exports grew in paper (+16.1%), dry bulk (+9.4%) and sawn goods (+4.1%). Imports were 2.9% greater than the year before. The transport of raw wood (+30.4%) and other goods (+21.0%) grew more than other categories. Negative figures in imports were seen in liquid bulk (-12.5%), dry bulk (-8.0%) and general cargo (-5.1%). Due to a decline in the transport of liquids, transit traffic decreased by 12.5% in all. Domestic transport, which is a very small sector at the Port of HaminaKotka, grew by 55.3%. The disturbances in container transport reduced the

handling of containers by 4.5%. A total of 2,344 (-3.1%) ships called at the Port of HaminaKotka last year.

Challenging year 2022 The year 2022 started in an uncertain mood due to factors such as labour market disturbances, coronavirus and the unstable geopolitical situation. At the end of February, when Russia launched the attack on Ukraine, international sanctions and their impacts on logistics also made it necessary for the port company to re-assess the expectations set for 2022. It was difficult to anticipate the developments in transport in 2022 even before the escalation of the crisis between Ukraine and Russia, but the outbreak of the war complicated it even more.


NEWS FROM PORT OF HAMINAKOTKA 1/2022

The market share of the Port of HaminaKotka of the entire transit transport to and from Russia in Finland is almost half, and of the transport volumes of the port, it accounted for 27% in 2021. Most of the transport at the Port of HaminaKotka consists of transport for the Finnish foreign trade. The strengths of the Port of HaminaKotka include versatile categories of goods and transport modes as well as comprehensive cargo handling and warehousing opportunities. “The change brought by the crisis may also create new possibilities, and we are focusing on them now,” says Kimmo Naski, CEO of Port of HaminaKotka Ltd. International cruise traffic on the Baltic Sea is starting to recover from the difficulties caused by the coronavirus pandemic, and based on current outlook, more cruise vessels than originally expected will arrive at HaminaKotka this year. However, the situation between Ukraine and Russia together with the coronavirus pandemic may bring sudden changes to the routing of cruise vessels one way or another. Exports*

11,055,407 t

-3.2%

Imports**

3,518,840 t

+2.9%

Total

14,574,247 t

-1.8%

* Also includes export transit

Cargo transport at the Port of HaminaKotka 2021

• Domestic <1% • Transit 27%

• Exports 51%

• Imports 21% Cargo volumes by types of cargo

• Other goods 15%

• Paper and pulp 30%

• Fertilizers 16%

• Liquids 18%

• Wood products 21%

** Also includes import transit

Impact of warfare by Russia on the operations of Port of HaminaKotka Ltd

Winter maintenance at the port

The majority of the transport volumes of the Port of HaminaKotka consists of transport needed by the Finnish foreign trade, which is not directly impacted by the Russian attack on Ukraine. The conflict affects transit transport, which accounted for 27% of the transport volumes of the Port of HaminaKotka last year. The situation with transit transport changes constantly depending on the EU’s sanctions and Russia’s counter sanctions as well as decisions by other parties involved in transit transport. The port company keeps a keen eye on the

The winter maintenance of Port of HaminaKotka Ltd covers about 30 km of roads, 100 ha of quay and field areas and 90 km of rail tracks. Winter maintenance includes snow ploughing, antiskid treatment, snow removal, sweeping and sand removal. In Hamina, the port company takes care of the winter maintenance of the rail tracks both itself and by using subcontractors. In other types of maintenance and at other parts of the port, winter maintenance is in the hands of subcontractors. In addition to Port of HaminaKotka Ltd, there are also several other parties in possession of the rail network within the port areas. The parties in possession of the rail network are companies operating in the areas, and each party is in charge of the maintenance of its own rail section. The winter maintenance contractors of Port of HaminaKotka Ltd keep contact with the traffic service unit of the Port of HaminaKotka in terms of vessel traffic, and with respect to rail traffic, they keep contact with the rail yard control centre so that winter maintenance work can be carried out in an as timely manner as possible. A winter with much snow causes challenges, but operations at the port work well despite the abundant snowfall.

situation. VR announced on 6 April 2022 that it will finish rail transport to the east gradually. This will have a significant impact on the transport to and from the Port of HaminaKotka. In terms of international cruise traffic, the Russian attack on Ukraine has had the impact that when St Petersburg is no longer used as a port of call, cruise shipping companies will re-route their ships on the Baltic Sea. This has brought numerous new reservations to the Port of HaminaKotka for the cruise season that is about to start soon.

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NEWS FROM PORT OF HAMINAKOTKA 1/2022

International cruise season to start soon The Port of HaminaKotka is making preparations for the new international cruise season, which seems to exceed all earlier figures. During the cruise season spanning from May to October, a record high number of about 30 international cruise ships are due to arrive at the Port of HaminaKotka based on current information. However, the cruise market on the Baltic Sea is at a critical stage, and it is impossible to foresee the final number of cruise ships at our port. There will be ships of many sizes arriving in both Kotka and Hamina, bringing as many as tens of thousands of passengers to the region. Both the pandemic and the situation in world politics have an impact on the coming cruise season, which is why there may be changes in the number of ships in either direction at a short notice. Kotka and Hamina have turned out to be internationally attractive cruise destinations due to factors such as a favourable location and versatile cruise and event offerings. Short distances, clean natural environment and experiences bestowed by the great outdoors are distinct competitive edges in the competition with other cruise ports on the Baltic Sea. As a

rule, just under one half of the cruise passengers take part in various types of excursions arranged for the guests, and just over one half learn to know the location on their own, utilising the services of local enterprises. In addition to making preparations for the coming cruise season, the Port of HaminaKotka is also working hard for the future years. Cruise traffic on the Baltic Sea is on the increase, and the port company has a highly positive outlook for the seasons 2023 to 2025.

“The cruise season 2023 already exceeds the quantitative goals set for it, and it is to be expected that we will receive more reservations by the autumn,” says Petra Cranston, Project Manager, Cruise Business at Port of HaminaKotka Ltd. Follow Cruise Port HaminaKotka also on social media!

The MS Marina of Oceania Cruises visited Hamina last autumn, and it is expected to arrive at the Port of HaminaKotka also in this cruise season (Photograph: Jarno Koivula).

Subscribe information bulletins Port of HaminaKotka at of the port to your email You can now subscribe to the information bulletins published in Finnish on the haminakotka. com website to be sent to your own email. The topics of the bulletins are divided into two categories, and you can choose whether to subscribe to the bulletins of both categories or just one of them. General bulletins include information on issues such as monthly statistics, news, and other general information. Infrastructure and maintenance bulletins contain mainly operative information, such as bulletins on extraordinary traffic arrangements and interruptions in data systems and electricity supply. You can subscribe to the bulletins either through the link https://www.haminakotka. com/fi/tilaa-tiedotteet-sahkopostiisi or using the button Tilaa tiedotteet sähköpostiisi at the bottom edge of the information bulletins published on the haminakotka.com site. Please note that the bulletins are published in Finnish.

Port of HaminaKotka Ltd Merituulentie 424, FI-48310 Kotka, Finland • office@haminakotka.fi haminakotka.com • tel. +358 20 790 8800

Breakbulk Europe event After a break of a couple of years resulting from the coronavirus pandemic, the Port of HaminaKotka is again taking part in international exhibitions. The annual Breakbulk Europe event has shifted from Bremen to Rotterdam, where the venue is the Rotterdam Ahoy facility. The Port of HaminaKotka is attending the event on a stand shared by Steveco Oy. Welcome to meet us in Rotterdam! Breakbulk Europe, Rotterdam Ahoy 17-19 May 2022 Hall 1, section 1G25-H24 Further information: europe.breakbulk.com

Port of HaminaKotka

Cruise Port HaminaKotka