Loiste 1/2025 - News from Port of HaminaKotka

LOISTE NEWS FROM PORT OF HAMINAKOTKA 1/2025

Photograph: Vesa Hovi

Review of 2024 at Port of HaminaKotka Port of HaminaKotka Ltd applying for EU support for shore-side electricity at Mussalo p. 6

AIDAbella will launch the cruise season in June p. 7

NEWS FROM PORT OF HAMINAKOTKA 1/2025

Photograph: Vesa Hovi

Review of 2024 at Port of HaminaKotka The year 2024 at the Port of HaminaKotka started relatively actively in terms of transport volumes, until the nation-wide strikes at seaports stopped port operations for a total of about one month.

The decline in transport volumes caused by the strikes was made up during the summer, but in the autumn, the difficulties in demand for exports also affected the transport volumes at the port. Transport volumes decreased significantly from October to December, and the transport volume for the entire year was 13.1 million tonnes, which is 1.0 million tonnes (-6.9%) less than in 2023.

Transport of exports decreased by 0.8 million tonnes last year, or 8.5% compared to the previous year. The decline in the volume of liquid exports, which had already collapsed in 2023 due to the sanctions imposed on Russia, continued to decrease in 2024. The exports of liquids decreased most in relative terms, but in terms of tonnes, the biggest decline was in the exports of pulp and sawn timber, which suf-

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fered from sales difficulties in the wood-processing industry. Their volume decreased by a total of 0.3 million tonnes, or 8.9%. On the other hand, the exports of paper increased by 0.1 million tonnes, or 6.7% from 2023. Despite the fact that the imports of round wood continued to increase slightly, imports as a whole decreased by 0.2 million tonnes, or 3.6%, compared to 2023. Transit transport decreased by 0.8 million tonnes or 24.9%. Six international cruise ships visited the Port of HaminaKotka.

Changes in the operating environment bring challenges

Since 2015, merchant shipping has paid half of the fairway dues in Finland under temporary legislation. Contrary to its own Government Programme, the Finnish Government

submitted a Government bill in the autumn to amend the Act on Fairway Dues and to repeal the temporary legislation on fairway dues. The President of Finland ratified the Act in December 2024, and with the entry into force of the Act, the unit prices and maximum amounts of fairway dues were increased proportionally by 75.2%, and the separate reduction granted to fairway dues for export transit transport was removed from the Act. Kimmo Naski, CEO of Port of HaminaKotka Ltd, Port Counsellor (satamaneuvos) is concerned about the effects of the change in the fairway dues: “The fairway dues that entered into force at the beginning of 2025 will significantly increase the logistics costs of Finnish exporting industries and weaken their competi­

NEWS FROM PORT OF HAMINAKOTKA 1/2025

tiveness, which will also be reflected at the largest export port in Finland, the Port of HaminaKotka.”

As a result of the war in Ukraine, the sanctions imposed by the EU on Russia are also affecting Port of HaminaKotka Ltd. It has been hoped that fertilizer transport from Russia, which is excluded from the sanctions and is strongly protected by the UN because it supports the food supply chain, will remain at its current level, but as the fairway dues in Finland multiply, the continuation of fertilizer transport is at stake. Fertiliser transport has accounted for approx. 15% of the total annual transport volume of the port. If fertilizer transport through the Port of HaminaKotka diminishes, it will be impossible to replace such a significant amount of traffic in a short timeframe. The port company works closely with the municipalities and economic development companies in the region to attract port-related industries to the area, but the progress of the projects takes time due to issues such as permitting processes.

The United States is tightening trade policy with various tariffs, which may also affect Finnish exporting companies and consequently the Port of HaminaKotka. The unstable geopolitical situation with its various contingency measures will probably direct the production of companies towards national solutions instead of global operations. This will affect the traffic flows, which is why it is increasingly difficult to predict the developments in traffic in the coming years. For this reason, Port of HaminaKotka Ltd has to carefully consider future investments. However, the number of measures to improve security and control must be further increased and cooperation with authorities must be intensified, which will increase costs and work in the port company.

Modest economic growth

From the point of view of the port, the Finnish economy does not yet show signs of recovery from the recession, even though some institutions have been predicting this for quite some time. However, there are positive indications, and a good example of this is the decision by Easpring Finland New Materials Oy to start the construction of a cathode materials plant in the Keltakallio industrial area in Kotka. The port company is actively involved in locating battery factory projects and other port-related projects that promote the green transition in the KotkaHamina region.

Exports*

8,609,235 t

-8.5 %

Imports**

4,538,356 t

-3.6 %

Total

13,147,591 t

-6.9 %

Vessel calls

2181

Containers

572,447 TEU

Cargo transport at the Port of HaminaKotka 2024

• Domestic <1% • Transit 18%

•Exports 49%

• Imports 32%

Cargo transport at the Port of HaminaKotka 2024

• Liquids 9%

• Wood products 29%

• Fertilizers 16%

• Other goods 18%

• Paper and pulp 28%

*Also includes export transit ** Also includes import transit 3

NEWS FROM PORT OF HAMINAKOTKA 1/2025

Economic life and businesses playing a key role in the reconstruction of Ukraine The possibility of a ceasefire and a permanent peace in the war in Ukraine have been raised in discussion in international politics. Extensive reconstruction has typically followed post-war peace treaties, and this can be expected in Ukraine, too. There will be a race to see who will be able to participate in the reconstruction work.

According to calculations by the World Bank, the UN, the European Commission and the Ukrainian Government, the reconstruction of Ukraine would cost an estimated 524 billion dollars, or 500 billion euros. Based on the Government Programme of the Finnish Prime Minister Petteri Orpo, the Ministry for Foreign Affairs of Finland together with the Ministry of Economic Affairs and Employment, the Ministry of Finance and business stakeholders has drawn up a plan for Finland’s participation in the reconstruction of Ukraine. The first part of the plan published in December 2023 focuses especially on the financing and advisory services that are appropriate for Finnish companies. These services are needed so that companies could be involved in the reconstruction

project that will be very extensive in terms of funding and timeframe.

The Ministry for Foreign Affairs published the second part of Finland’s national reconstruction plan for Ukraine in December 2024.

Finland’s support includes development cooperation, humanitarian aid and material assistance. Repairing the destruction of war and building a new sustainable economy is an effort spanning over years and requiring wideranging international support and participation. Economic life and businesses play a key role in this.

The reconstruction of Ukraine will require above all basic infrastructure, such as roads, shelters, water, housing, schools, green technology, hospitals, and electricity and telecom-

munications networks. Finnish companies can participate in the reconstruction in many ways, utilising their expertise, infrastructure and logistics connections. Finland has often been blamed of relying on basic industry for too long and not sufficiently developing processed products. However, in this situation a strong basic industry is a significant resource, which is needed especially in reconstruction.

The Port of HaminaKotka has a long and versatile experience in serving strong Finnish industries. This gives it excellent capabilities to serve as a logistics hub related to reconstruction. The port serves all modes of transport and offers excellent connections to the ports on the Baltic Sea, through which materials and supplies can move smoothly to Ukraine.

The Port of HaminaKotka serves all modes of transport and provides excellent connections to seaports on the Baltic Sea. Photograph: Vesa Hovi.

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NEWS FROM PORT OF HAMINAKOTKA 1/2025

The logistics exercise held in March brought together a large number of authorities and organisations operating in the area.

Photograph: Finnish Defence Forces.

European Logistics Institute developing security of supply and comprehensive logistics security The European Logistics Institute (ELI) is a multidisciplinary centre of excellence established at the South-Eastern Finland University of Applied Sciences (XAMK) in September 2024. ELI develops security of supply, logistics and comprehensive security of logistics in society. ELI brings together authorities, enterprises and educational institutions into an extensive network that works together to find and test solutions to logistics challenges.

Preparing for disturbances through training

Logistics is an essential component of critical infrastructure and security of supply, and its importance will grow even more in the future. The management of logistics chains will become more difficult, and the infrastructure important for security of supply will mainly be in the hands of the private sector.

In the future, international co-operation and dependencies between different countries will add to the challenges of managing these systems. New technologies, such as artificial intelligence, machine learning and robotics, create both threats and opportunities that need to be explored and tested. Preparing for various disturbances resulting from technological changes, and practical training

are a significant part of the things that ELI does.

ELI improves the operations and crisis resilience of Finnish organisations by arranging training, exercises and workshops related to logistics and cyber security. The practical development needs come from the partners of the network, and ELI brings together experts to implement the training.

“At the moment, the network includes large-scale logistics operators, but security concerns everyone, and the goal is to involve as many different companies as possible in the efforts. As an example, a cyber security exercise will be organised next autumn as a joint exercise between different parties,” says Vesa Vainio, Head of ELI Unit.

Kymenlaakso as a pioneer in logistics and comprehensive security

Xamk’s main area of operation is the region of Kymenlaakso hosting a variety of logistics and comprehensive security operators as well as related educational and research activities.

Due to its location, Kymenlaakso is an important logistics centre in Finland, as it is home to the Port of HaminaKotka and the Kouvola Railway and Road Terminal (RRT), both of which are part of the trans-European TEN-T transport

network. Vesa Vainio says that Kymenlaakso is a good testing ground for the operations of the centre of excellence and a key partner of the Port of HaminaKotka, with which ELI has already conducted cooperation in exercises, among other things.

“In early March, we arranged a logistics exercise aiming to expand the participants’ knowledge of host nation support and of receiving coalition troops. The Finnish Defence Forces instructed the overall arrangement of operations from the point of view of the Defence Forces, and the exercise advanced the roles and responsibilities of different parties in different situations,” says Petri Olli, Head of Planning at ELI. ELI’s goal for the next few years is to establish its position and become known as a national top-ranking expert in logistics.

“ELI has a lot of potential. In addition to our extensive network, one of our strengths is our highly proficient teaching and research staff,” says Vesa Vainio.

Further information: https://www.xamk.fi/en/eli/

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NEWS FROM PORT OF HAMINAKOTKA 1/2025

Port of HaminaKotka Ltd is applying for EU support for shoreside electricity project at Mussalo Container Terminal The FuelEU Maritime Regulation, which aims to reduce emissions from shipping, sets specific requirements for container ships and passenger ships arriving at EU ports, obliging them to use a shore-side electricity system for their energy needs while in port. From 2030, container and passenger ships of more than 5,000 gross tonnes must use shore-side electricity or other equivalent zero-emission

technologies when entering EU ports, unless exemptions can apply.

Port of HaminaKotka Ltd conducted a study in 2024 on the implementation and costs of shore-side electricity and has decided to apply for EU support for the shore-side electricity investment at the Mussalo Container Terminal. The support is applied for under the CEF Transport Alternative Fuels Infrastruc-

ture Facility (AFIF) programme, which aims to support the introduction of distribution infrastructure for alternative fuels and contribute to the reduction of carbon dioxide emissions from transport along the TEN-T network. The application for funding ends in June and decisions are expected in the autumn.

Photograph: Vesa Hovi

Amendments planned to the Security Clearance Act In December, the Finnish Government submitted a Government bill on the protection of critical infrastructure in society and improving resilience as well as on certain other issues to Parliament. The purpose of the bill is to enact the Critical Entities Resilience Directive (CER).

As part of the bill, a proposal has also been prepared on security clearances, according to which the Security Clearance Act would be expanded so that in the future, personnel security clearance could also be carried out on persons who have access to critical or confidential information about critical infrastructure.

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In seaports used for international traffic, such as the Port of HaminaKotka, it would be mandatory to carry out a security clearance on certain employees who have access to critical information. In other words, according to the bill, the port authority would have to make an application for a security clearance on persons who will have access to confidential information on port security measures or to an information system for cargo handling or port surveillance that is critical to the security of the port, enabling the information to be read and converted for purposes other than for indi­vidual

work tasks or for the technical maintenance of the information system.

If enacted, the amendment would increase the number of personnel security clearances in companies that the authorities consider to be covered by the Act. “The port is co-operating with various authorities to ensure that the legislative amendment is implemented at the port in the most purposeful way possible,” says Timo Rosendahl, Director, Traffic Operations of Port of HaminaKotka Ltd.

NEWS FROM PORT OF HAMINAKOTKA 1/2025

AIDAbella will launch the cruise season in June The Covid-19 pandemic together with the unstable geopolitical situation and the consequent absence of St. Petersburg as a port and travel destination have affected international cruise traffic on the Eastern Baltic Sea for several years now. However, consumers are increasingly interested in cruise ports on the Eastern Baltic Sea, and alternative ports suitable for Baltic Sea cruise itineraries, such as HaminaKotka, are becoming more and more attractive. The ability to receive vessels of all sizes and a location close to Tallinn, the capital of Estonia, and Helsinki, the capital of Finland, render the Port of HaminaKotka as a viable option as a destination for cruise lines.

This year, the international cruise season of the Port of HaminaKotka will start in midJune with the arrival of the AIDAbella of AIDA Cruises in Hamina. This cruise line returns to HaminaKotka after a break of some years, as its vessel AIDAmar made its inaugural call at

HaminaKotka in 2017. The other cruise ships visiting the Port of HaminaKotka during the summer will arrive at Kantasatama in Kotka. A total of four international cruise ships will visit the Port of HaminaKotka this season.

Tour operators will arrange guided excursions for cruise guests to attractions such as the Langinkoski Imperial Fishing Lodge, museums, the Kymijoki River and the nearby archipelago.

Sightseeing tours in Kotka and Hamina have also been popular among cruise guests. Since the ships stay in the port all day, visitors often also tour the town on their own and use the services of local service providers.

Despite the challenges in recent years, the Port of HaminaKotka has done active efforts for promoting international cruise traffic.

“We look into the future with confidence, as we have already received reservations from cruise line companies for the next two years.

We are also involved in the Cruise Finland co-

operation network, which was established last year. It promotes the repu­tation of Finland as a cruise destination in the international cruise market,” says Petra Cranston, Project Manager, Cruise Business, of Port of HaminaKotka Ltd.

Cruise ships due to arrive at the Port of HaminaKotka in 2025: 15 June AIDAbella, Hamina 29 June Sirena, Kantasatama 5 July

Azamara Journey, Kantasatama

4 August Hebridean Sky, Kantasatama (The information is subject to change.)

The Azamara Journey, the sister ship of the cruise ship Azamara Onward pictured here, will call at the Port of HaminaKotka in July.

Photograph: Jarno Koivula.

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NEWS FROM PORT OF HAMINAKOTKA 1/2025

Kotkan Satamatalot Oy 25 years Kotkan Satamatalot Oy is a subsidiary of Port of HaminaKotka Ltd. Kotkan Satamatalot Oy rents out office, warehouse and workshop facilities in the various parts of the port in Kotka and Hamina. The company focuses on the ownership and management of real estate in a way that supports the operations of the parent company and promotes the development of port traffic in the area.

This year marks the 25th anniversary of the establishment of Kotkan Satamatalot Oy. The company’s Managing Director Eija Rossi is

particularly pleased with the high utilisation rate of warehouse facilities.

“Kotkan Satamatalot Oy has managed to keep abreast of the times in the rapidly changing business environment. We have been able to respond to the customers’ needs by utilising the existing buildings. This brings an advantage to our customers because they do not have to build their own facilities, but they have quick access to facilities through us,” she says.

Mari-Anne Aalto, Property Manager who has worked for the company for a long time,

Port at international trade fairs As usual, the Port of HaminaKotka will participate in the BreakBulk Europe fair in Rotterdam and the Transport Logistic fair in Munich.

says that the changes in the business environment are also reflected in the customers of office premises.

“The clientele of office tenants has changed, and as the number of international forwarding companies has decreased due to the sanctions related to trade with Russia, other operators have replaced them. As an example, in office centre Kuorsalo we have been able to provide the Town of Hamina with well-functioning premises that suit their needs,” she says.

BreakBulk Europe, Rotterdam Ahoy 13-15 May 2025 Hall 1, stand 1G25-H24 europe.breakbulk.com

The annual BreakBulk Europe fair celebrates its 20th anniversary, and the event has been renewed in honour of the anniversary by extending the event period to three full days and by introducing an additional facility and wider main corridors that help visitors find exhibitors quickly and offer direct routes to the main stage, among other things.

Transport Logistic in Munich, one of the world’s biggest trade fairs in logistics, IT and supply chain management, will once again bring together major players in logistics from around the world. The previous fair in 2023 attracted nearly 75,000 visitors from 135 countries.

Welcome to meet us at trade fairs!

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

Transport Logistic, Messe München 2-5 June 2025 Hall B3, stand 321 transportlogistic.de

Port of HaminaKotka

Cruise Port HaminaKotka