Delivered SCANDIC TRANS 2022 • ACTIVE SUSTAINABILITY COMMUNICATION STRENGTHENS THE BRAND • SUCCESSFUL RISK-TAKING IN SOUTHERN FINLAND • PRICES RUNNING AWAY FROM FUEL BUYERS AT THE PUMP • FREIGHT TRAFFIC IN THE BALTIC SEA IS INCREASING
2 Scandic 65610LagervägenTrans14Korsholm Production: bySand and Kustmedia Editorial: Mikael Löfqvist, Marjo Lehto, Johan Lövdahl, Anna Sand, Lisbeth Bäck Text & Picture: Anna Sand/bySand Layout: Mikaela Kortell/Kustmedia Printing: KTMP 2022 Cover: Linda Svarfvar IN THIS ISSUE: Delivered SCANDIC TRANS 2022 10 6 14 20 8 COVER LETTER THE NATIONAL NETWORK OF TERMINALS GROWS IT’S ALL ABOUT THE FIRST IMPRESSION MORE AND NEWER FERRIES INCREASE THE FREIGHT CAPACITY IN THE BALTIC SEA SCANDIC SUSTAINABILITYFURNITURESCANDINAVIANTRANSPORTSTRANS WORK IT’S ABOUT WINNING OR LOSING THE COSTS CRISIS IN THE TRANSPORT INDUSTRY QUICK ACTION SAVED THE TRANSPORT COMPANIES THE JOURNEY HAS ONLY JUST DIRECTBEGUNFROM FACTORY TO CONSTRUCTION SITE CO-OWNERSHIP HAS ENABLED AN INCREASE IN TURNOVERT A DISSERTATION SHOWS THE WAY TO A NEW TOOL GÖRANS KEBAB – A SUCCESS STORY 10643812 20161417182122
Additionally our environmental work with HVO diesel, our most important action, has succeeded well. We have, together with our customers, increased the number of vehicles that only use HVO diesel to more than 20.
mankind’s survival?
I am convinced that it is a must for us to start thinking about how to raise awareness and commit to the environ ment, and how our actions will affect future generations.
or is it an
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Environmental work continues and new goals are set continuously. Future environmental investments will be in ground source heating, solar panels, passenger cars and trucks that run on gas. The focus on our quality work is continuous improvement as the guiding principle. Business deviations have dropped from year to year both in numbers and in paid compensation to only 0,22%.
For some time now I have weighed different reasonings against each other. Is it defensible to fly? Should we con tinue to visit our customers in person instead of having Teams meetings? Should we try to decrease the use of consumables such as coffee, paper, water and so on? How should we encourage environmental choices that can’t be argued, at least not in an easily comprehensible way?
Activities by companies have increased during the pan demic despite the tough business environment. We have managed without seeking public financial assistance, have been able to help our hauliers with additional payments in order to minimize losses from increased expenses and it has been possible for us to carry out our growth strategy.
Wishing you pleasant reading and continued great cooperation!
Is sustainability
Debates that polarize and exacerbate without thorough research rule out constructive development. Investments in research and development of technology should be financed at a faster pace.
The labour market within the transport sector is facing big challenges. The trend is negative; the number of pro fessional drivers being trained is not large enough and in terest in the profession has not been excessive. This trend, however, now seems to be changing to some extent – at least when considering the number of applicants to logistics training courses in Ostrobothnia, which is encouraging.
Mikael Löfqvist, CEO Scandic Trans just a trendy word ultimatum for
The national network of terminals grows
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When one of the company’s cooperation partners closed down their business in the area, Scandic Trans saw the opportunity along with the suitable business premises and took over the warehouse of 2000 m2 with a maximum capacity for 2400 pallets at Tegelslagargränd.“Itwasabigriskto start from zero but already at the beginning of January 70% of the warehouse capacity was in use. As we were given the opportunity to take over the distribution and customers of the company that was there before us, we got many new customers and, thanks to the old and new staff, everything is going very well there. Our new warehouse manager has been a real help in the start-up phase and after only four months we are making a profit there,” Löfqvist expains.
Since the turn of the year Scandic Trans has operated its own warehouse and terminal in Vantaa. Even part of the traffic management work is being conducted from there and in the future the plan is to operate the whole country from the Vantaa office.
The need became more concrete, and acute, when a contract was made with new major customer JYSK for whom most of the distribution is concentrated in the capital area. “More than 30 of the total of 54 JYSK stores we make deliveries to are in that area,” Löfqvist continues.
The pace in Scandic Trans has been fast during the first part of the year, for a number of reasons. One of them is the investment in a new site in southern Finland, more precisely in Vantaa, including a warehouse, terminal, distribution and an office. Additionally, a new building project is being planned and a suitable plot is being sought after.
Text: Anna Sand • Photo: Linda Svarfvar & Scandic Trans H aving its own warehouse and terminal in Vantaa have been part of the plans for several years and pressure from the board has been great.
“To develop our own national warehouse and terminal network is a must before we become more international,” says CEO Mikael Löfqvist.
Later on Marko Äbb, who over many years worked as a driver for Scandic Trans between Finland and Norway, moved from his driver’s seat to the office and decided to have another go at the Norwegian market. His work produced more and more transport runs and the dialogue between Richard and Marko grew.
The present premises are 2 000 m2 and space for 2 400 pallets. The planned new building will be between 4 000 m2 and 10 000 m2 .
“Because it’s important that all communication is in real time and that the people working in the same market sit close to each other, we decided to open and have an office close to Markos’s and Niklas’s home,” Löfqvist explains.
As transport volumes have increased, at the turn of the year 2021-22 another transport manager for Nor way and Denmark traffic, Niklas Ahlroos, was hired.
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“We are looking for a suitable plot in the vicinity of Ring Road III as it is the most effective site for the new terminal considering international trans ports. The plan is to build 4 000 – 10 000 m2 with both a terminal for flow-through goods, a ware house including cold, frozen and warm storage and enough office space for 20-30 people,” says Löfqvist. Both real estate agents and construction compa nies are already involved in the process, which we will almost certainly come back to again later.
“Our Norway-Denmark Team has now seen to it that the business in these countries is flourishing again. They visit the Vaasa office and work there with their colleagues a few days a month. But as traffic in Norway, and even in Denmark, is different from other areas due to the EU and special vehicle combinations, it makes sense to have a team for those countries,” saysAhlroosLöfqvist.and Äbb confirm that they have good com munication with Scandic Trans’ other offices.
“Freight flow has increased remarkably over the past two years. The biggest challenge is to utilize the trucks to the maximum. As far as the Norway transports are concerned, we also deal with customs documents and they can sometimes cause challenges, but we enjoy both remote working and working in the new office,” Ahlroos concludes At the same time part of the traffic management team has moved to Vantaa and we now have three employees there. The plan is that in the future we shall operate the whole of Finland from Vantaa.
All this means new and positive problems – the premises being rented now is already too small and a planning process for a new, self-owned terminal is now under way.
Richard Romar, who had previously worked with the Norway transports, moved over to sales and has made a very positive contribution there,” says CEO Mikael Löfqvist
A new office in South Ostrobothnia
Leading up to 2019, traffic to and from Norway decreased for several reasons: tough competition, cooperation partners that closed down their busines ses and a changed network of contacts in the market.
“Cooperation with the Vaasa office is important and there is constant communication between the two locations via Teams and an open, direct telephone line. As from August there will be another new person working there as an area manager for all European transports outbound from Vantaa,” Löfqvist adds.
“The need for both warehousing and terminal services and premises is unbelievably large in the capital area. Thanks to our focus on a local and personal customer service, Scandic Trans stands out from most of the other companies, which has proved to be a major strength there.”
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Text & photo:
A company’s website is the cornerstone of its marketing strategy. Regardless of how visible (and active) a compa ny is on social media, its customers need and want to have a website to visit. Social media is for attracting customers to the website, but it is the website where the company builds a professional image. A website should, in addition to being aesthetically pleasing, be functional, user-friendly, obviously profitable and generate leads.
Social media is today often seen as the fastest way for a company to create and maintain an online presence, but despite social media’s growing emergence and influence, websites are still an important tool for companies. Scandic Trans has decided to invest in both, and a new website was launched at the beginning of 2022. Anna Sand
Work on the new website was initiated during the autumn of 2021.
“The old website started to feel a bit outdated and didn’t quite meet today’s requirements,” begins Scandic Trans’s new website has been launched
It’s all about the first impression
For those who would like to follow our daily work in Scandic Trans, see on-the-road pictures from our drivers or have a live tour of the company’s newest premises, it’s a good idea to visit us on Linkedin, Facebook, Instagram and YouTube
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“Cooperation with the website developer was good and the website was launched during the early winter of 2022. In terms of the look of the website, it has experienced a total makeover and is now more flexi ble, more fun to visit and is, of course, search engine and mobile friendly. These are very important features with a website,” Johan continues. “Additionally, our resources for updating the website earlier were limited, something we emphasized and kept in mind during the process.”
The site structure is clear and simple, and a visitor can find answers to many questions they might have. There’s also a section on the website where visitors can find all our staff and their contact details, not just a telephone number for the switchboard and also see the face of their very own contact person – Your Johnny is here for you, and when you need him, we’re happy to send him to you.
Johan Lövdahl who joined us during the project as he had experience from similar projects.
In connection with the launch of our new website, we have simplified the process of requesting a transport quotation. The smoothest way is now to use a form on the website under the tab “Contact”. By using the form, you will automati cally get your own contact person with the focus exactly on your unique transport needs. It is fine for you to contact us also by email or by phone, but in order for us to provide the best possible customer service, you will also then be asked to fill in the form Under the tab “Contact” it is now also possible to leave feedback or a reclamation or make an open job application. We would very much like to hear from you – don’t hesitate to contact us!
The building of the new website meant a lot of invi sible work and we in Scandic Trans chose to involve a large part of the staff in the project – more pairs of eyes see “There’sbetter.always room for improvements. It’s an ongoing process and the more pairs of eyes that critically monitor the work being done, the better,” JohanOnebelieves.newfeature is that the company’s newsletters are integrated so that company news and current articles are automatically published on the new website, and also all the key documents that customers need to have access to, download and print are available there as well. Among other things available to our customers on the new website is the latest information on the most recent fuel surcharges and copies of all our customer magazines, for example the one you are holding in your hand.
“It’s clearly a very interesting trend but also something that requires more time and skills. Marketing is quite different today from what it used to be, for example ten years ago,” Johan concludes. Johan Lövdahl at Scandic Trans Korsholm has engaged in the development work of the new website and especially appreciates the feature that he can personally update the website as often as necessary.
“The tone of voice on our social media accounts is a bit more easy-going, and there’s also quite a lot of video footage there. This type of visibility is very important, too,” Johan says. “Today it’s more and more common that companies have Tiktok accounts.”
THE TRANSPORT QUESTION IN A NEW WAY
The concept of “We’re sending Johnny” and our commitment to personal customer service will per meate everything we do here in Scandic Trans.
More and newer ferries increase the freight capacity in the Baltic Sea 8
For the first time in a very, very long time we are in a situation where the freight capacity of Baltic Sea ferries is in line with market needs. Not only have more ferries been taken into use, even more shipping companies have chosen to start sailing between Finland and Sweden at the same time as more shipping companies have upgraded their ships and thus have more capacity.
"Especially in summertime it has been crowded on the boats and our drivers have occasionally been forced to wait for the next departure. 9 Traffic between the countries is doing fine,” says Erik Söderholm, the managing director of the Port of Turku. It depends a lot on online shopping, which is growing annually by 10%.
T he positive development can be seen clearly both by Scandic Trans trans port planners and the customer, who no longer needs to wait an extra 24 hours for their deliveries due to full ferries.
But it is not only Viking Line that has increased its capacity. Finnlines, which runs the route from Naantali to Kapellskär with two daily departures, has today two identical ferries in use, which means double capacity compared with the previous one.
Text: Anna Sand • Photo: Archive photos/Port of Turku
In January even Stena Line started traffic from Hanko to Nynäshamn, with the focus mainly on freight, and from May another ferry will be placed on the same route.
“Traffic between the countries is doing fine,” says Erik Söderholm, the Managing Director of the Port of Turku. “It depends a lot on online shopping, which is growing annually by 10%, but trade in food stuffs and medicines is also growing. He says that the development has been relatively fast.“Viking Glory has 1 500 lane metres reserved for freight, which corresponds to the total amount a ship could carry in the 1990s. Together with the 1 250 metres that Viking Grace has, these two vessels form a great fleet both from a passenger and a cargo point of view.” Söderholm adds.
Viking Line is one of Scandic Trans most important ship ping companies and when Amorella was replaced by a new ferry earlier this year, it meant an increase of 66 percent in cargo metres. “We noticed it straight away,” says Lerbacka. “But it’s understandable as the ferry is very busy anyway during the summer. The new system on the car deck allowing cars and trucks to be parked separately is an advantage.”
“It’s the first time in a very long time that we can see things improving,” Lerbacka says. Capacity increases can be seen on a wide front, not only in the Baltic Sea. Across Kvarken Wasalines’ new ferry Aurora Botnia has enabled the shipping company to have more space, more departures and faster crossing times.
The route between Turku and Stockholm is one of the fastest between these two countries and the travel time equals a driver’s rest time.
Scandic Trans has a certain space on Viking Lines ferries allocated for their vehicles daily but, nonetheless, it is a constant puzzle from the viewpoint of traffic “Ferrymanagement.bookingsand this puzzle employ two people full time here,” Lerbacka continues.
“Especially in summertime it has been crowded on the boats and our drivers have occasionally been forced to wait for the next departure, which means unloading will happen on day three instead of day two,” Joakim Lerbacka explains in the Vaasa office.
“The Ropax ferry Europalink started traffic on the route in January and there are now two sister ferries serving the route in the Star class, Finnswan and Europalink,” says Antonio Raimo, Line Mana ger of “TheFinnlines.vesselsare 235 metres long and will have space for 300 trucks, 200 cars and 1100 passengers,” Raimo continues.
Finnlines’ all new invest ments are freight driven and the shipping company will carry more than 50% of the import and export freight between Sweden and Finland.
“We obviously use our local shipping company when it makes most sense in terms of geography. It’s always the number of kilometres and the final costs that are decisive,” Lerbacka concludes.
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“No, it’s not an easy task to be a forwarder and organize shipments for JYSK,” Annika Löfgren, Logistics Director for the northeast region, says. The great variety of goods, and even in volumes, challenge both drivers and transportation planners.
Scandic Trans transports
Right now JYSK is in the process of building their tenth distribution centre in Holland. Several trucks are every week leaving from the central warehouse L arge garden furniture, sunshades, scented candles and kitchen towels are just some examples of the variety in their product range. Products in different shapes and sizes demand flexibility from transporting companies.
furnitureScandinavian
Text: Anna Sand photos JYSK
The Danish-owned retail chain has today more than 3 000 stores in 51 countries. Just under 100 of them are located in Finland. All the goods in the Finnish stores come from their distribution centre in Nässjö, Sweden. At the turn of the year (2021-2022) JYSK reorganised its logistics network and Scandic Trans became one of their cooperation partners.
“Both planning, loading and unloading pose a challenge as products being shipped are rarely square-shaped,” she adds.
• Photo: Publicity
“Garden furniture is a big part of our business, and even though the biggest sales volumes usually take place during a certain time, the weather tends to greatly affect the number of orders and how much goods we move,” Löfgren says.
JYSK – RETAIL CHAIN
• The first store was opened in Århus in 1979.
• Scandic Trans is responsible for handling three of the Finnish zones.
A change of transport company always creates a certain degree of uncertainty in the stores and all non-conformances are“Therereported.haven’t been any and the stores have been very pleased with Scandic Trans,” says Löfgren, smiling. From the perspective of JYSK, the quality and obviously also the price is important but even the environmental aspect is high up on the agenda. “It will be even more important in all our activities in the future,” Löfgren explains. “We will be making demands regarding the trucks and aim for full truckload rates, as Scandic Trans does.”
• Today there are more than 3000 stores in 51 countries.
As a retailer we need to see our car bon footprint in a bigger picture than just in our own activities and therefore our goal is also to engage our suppliers and partners in transport in this work. Our goal is to be carbon neutral by 2050.
– We see Scandic Trans as a serious and reliable partner, having the same environme ntal values as we have here in JYSK, Annika Löfgren, logistics director of JYSK, says.
“Deliveries from Nässjö cover the whole of Sweden and Finland. We’ve introduced a system with automa ted picking; we have three high bays and the highest of them is 42 metres high. Goods are loaded by cranes and moved to the various picking areas,” Löfgren
• The word Jysk stands in Danish for something or someone who is from Jylland and is associ ated with humbleness, conscientiousness and honesty.
• Owned by the family behind Lars Larsen Group.
• The company employs about 26 500 people.
• Jysk will soon have 10 distribution centres, of which the closest one is in Nässjö, Sweden.
JYSK is a big name in garden furniture, but also in home furnishings, which means a large variety in goods sizes. Even weather conditions have an impact on the volumes and transport companies need to be flexible.
The current system also builds better relationships and continuity with our customers and partners.
• There are 94 stores in Finland in 8 transport zones.
Previouslyexplains.JYSK used only one transporting partner for Finland, but at the turn of the year the logistics were“Inreorganized.Swedenwe’ve always had different transport zones and now we have the same system in Finland. This allows us to find and cooperate with smaller, high-quality transport companies closer to our customers and we don’t have to put all our eggs in one basket, as they say.”
“For us in JYSK, Scandic Trans, which now handles three of our eight zones in Finland, is a new acquain tanceship. We see them as very professional and the communication is and has been very good and easy with them, which is crucial for a well-functioning transportation system,” Löfgren continues.
11 in Nässjö distributing goods to the JYSK stores in Finland. Also orders from the Finnish JYSK web shop are directly delivered from Nässjö.
• The founder Lars Larsen was well-known in the whole of Denmark as a leading businessman.
• The annual turnover is approximately 4.1 billion euros.
It’s about winning or losing
“It’s only 13 years away, and all new investments in the business world must nowadays be sustainable and part of the green transition. This fact permeates everything,” Östberg continues.
It is namely there where all sustainability measures should lead – to better profitability, thanks to bigger competitive advantages, improved effectivity, etc.
“It has to be significant; five percent here or there doesn’t count,” Östberg says. “We are talking about at least a 50% difference within 5-8 years.”
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Sustainability work
“If the sustainability work only creates additional costs to a company, then something is being done wrong,” Östberg adds.
The starting point for all sustainability work is our government programme which states that Finland should be the world’s first fossil-free welfare state, reaching carbon neutrality by 2035.
Based on calculations of the present situation, a decision is made on which key figures are going to be worked with and to what extent.
A base year and target year as well as the level of ambition are chosen.
In the Nordic countries we consume resources equivalent to four globes each year, and if your company hasn’t yet started to think about sustainability, it is time to get started now. The entire business world will be affected – regardless of the industry, regardless of the type of business and regardless of if you are buying or selling transport services.
Text & Photo: Anna Sand D oes it sound tough? Making sustai nability a part of your business isn’t really as difficult as many believe. “As a matter of fact, you can com pare it to normal quality work. What it basically comes down to is simply streamlining the business, consuming less resources and creating a better image and a bigger compe titive advantage, something that companies actually do all the time,” says Göran Östberg, project manager in the circular economy at Vasaregionens Utveckling Ab VASEK
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Talk about the walk. Göran Östberg, project manager in circular economy at UtvecklingVasaregionensAbVASEK.
“Climate compensation is the very last resort, not the first one, as many incorrectly think. It is often used as a marketing tool, but as a matter of fact it is often nothing but a sheer bluff. The purpose of sustainability work is to decrease the company’s carbon footprint and not just to pay to ease your conscience,” Östberg says.
All work on climate impact should start from carbon dioxide calculations, they are enor mously important. There is a recognised system to calculate a company’s carbon foot print and then establish goals and a timetable for its sustainability work – the so called GHG protocol.
Transport and logistics are two of the focus areas of Finland’s climate act. “What is legislated but not followed, will lead to sanctions. Those who do not adapt their business to the new requirements are likely to be met with financial penalties,” Östberg says. But where do you start if so far the only experience from sustainability work you have is sorting bio-waste in the personnel canteen? “First and foremost, the be-all and end-all is to follow the “walk and talk” principle,” Östberg explains. “It’s not only about talking – that’s what people call “Green Wash”, or not to do either, that’s “Green Hush”. You have to both do and tell, in other words carry through real measures, with real impact, and even communicate it, something that is called “Green Cash”.
Finally, the last impossible determining factors which can’t be affected can, as a last resort, be dealt with as climate compensation.
“Business activities in a company are categorised by different scoops. Scoop 1 includes internal work: the company’s own heating system, vehicle fleet, pro duction and so forth. Scoop 2 includes the purchased energy and heat, while Scoop 3 means all indirect emissions. This includes all purchased transport, business trips and emissions relating to all purchased products,” Östberg explains.
Additionally, every person in the company has to be engaged in the work,” Östberg adds. It’s a never-ending job, an ongoing process of impro ving, and the sustainability journey has to be communi cated all the time.
“Active sustainability communication strengthens the brand, inspires others and takes development fur ther. But the work itself and the company must also be able to withstand critical examination. It is important to avoid so called greenwashing,” Östberg continues.
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According to Östberg, companies that do not choose to focus on sustainability will be gone in ten years.
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2. Changing to low-emission or emissionsfree technologies.
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• Emissions from greenhouse gasses from traffic can be reduced in three ways:
1. Decreasing the amount of traffic (kilometres) that produce emissions and improving the energy efficiency of the traffic system in some other ways.
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SCANDIC TRANS’
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“Scandic Trans is a pioneer in the industry and I take my hat off to them for their sustainability work. So far I don’t know of any other business who can offer detailed emissions reports,” Östberg concludes.
• Traffic accounts for 1/5 of all emissions in Finland, of which approximately 94% is from domestic road traffic.
Reduce emissions, referenced to EU climate and energy targets 2030 40 % less greenhouse gas emissions (compared to 1990). 32 % renewable energy ▪ 32,5 % improvement in energy efficiency. Streamline and optimize transport planning. Optimize the use of equipment and materials.
3. Starting to use more low-emission or renewable fuels According to the EU target, Finland should reduce its greenhouse emissions by 30% by 2030 compared to 2005. Finland’s energy and climate strategy states as a target that Finland should reduce traffic emissions by 50% by 2030. One target in Sanna Marin’s government pro gramme is that Finland will be carbon-neutral by 2035 and the obligation in the whole of the EU to reduce emissions by 2030 will be sharpened to a ofminimum55% to(compared1990). fuelled with HVO.
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“We should be a lot better at that in Finland. We work quietly until we have something ready to present. But when it comes to sustainability work, it’s the wrong way to go about it. Companies have to start to com municate about their sustainability work from step one. They must simply dare to talk about the journey.
When companies say they are green or environme ntally friendly although they are not, they greenwash themselves.“It’sabout being open and honest, communicating their goal and the progress they are making, and not to wait with the communication until they are completely sustainable, because no one ever is.”
THE TRANSPORT INDUSTRY AND SUSTAINABILITY WORK “Road transport accounts for 94% of domestic traffic emissions, so focus on the transport industry will increase. Transport companies have to offer emission reports to those customers who require them and the environmental impact will be given more emphasis when purchasing transport services. Sustainability work and the possibility for greener transportation improves competitiveness in transport companies so it is a must to follow the fast competition. All new investments should be carefully considered; there will most likely be some sort of reporting require ments in the future.
THE SUSTAINABILITYCOMPANY’S JOURNEY (The circular journey) 1. Interest 2. Insight 3. Plan 4. Motivate and enable 5. Activities 6. Impact ENVIRONMENTAL OBJECTIVES FOR 2022 • Gradual conversion to more environmentally friendly energy consumption. • Euro emission class: Euro 6 and Euro 5 totally at least 99%. • CO2 emissions reduction by 40%, approxima tely 40 own vehicles
“In other words, talk about the walk,” Östberg says with a smile.
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OWN ENVIRONMENTAL TARGETS
• Emissions reporting.
“The requirements and the pressure are increasing all the time – from consumers, from the authorities, from customers and from financiers. Participating in saving the planet has become a matter of image, and it is the frontrunners who will benefit the most,” he says. A very important aspect of sustainability work is communication, both internal and external.
EMISSIONS
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Many companies were harshly affected by the pandemic and had barely put the previous crisis behind them before our neighbour in the east threw us into the next one. The consequ ences of the Russian invasion of Ukraine were almost directly visible in fuel prices in Europe. This has presented big challenges for the trans port industry and we will now review what the state has done to tackle the costs crisis.
The costs crisis in the transport industry
Ollikainen describes the cost aid and the temporary easing of the distribution obligation as extremely important.“Thecost aid will probably not be paid until the autumn but I hope the temporary lowering of the distribution obligation will affect the pump prices during the summer. On the 25th of May the government submitted a proposal that would temporarily lower the obligation by 7.5% and the distribution obligation would therefore be 12% in 2022. This is estimated to lower the price of diesel at the pump by about 12 cents. The reduction for 2023 has been deferred to the government proposal to be issued in the autumn. At the same time, the proposal lays down provisions on compensating for the emission reductions that will not be implemented in 2022 and 2023 in the coming years. The act is scheduled to enter into force in the summer of 2022.”
“I’m also very happy about that the preparations underway for a tax system on diesel for commercial drivers and I hope the bill will be prepared promptly,” Ollikainen continues.
The measures to be taken are on three fronts: firstly the transport industry will be granted direct aid of 75 million Euros, secondly the distribution obligation will be reduced for 2022-2023, and thirdly a tax system on so called commercial diesel will be developed.
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On the first of April, the Ministerial Working Group on Preparedness drew up the guidelines for securing the operating conditions for the logistics industry.
“We are very well aware of the difficult situation faced by commercial road users and there have been many contacts,” says Mikko Ollikainen, member of the Finnish Parliament. “This especially concerns those who don’t have index-linked contracts. As an ex port-dependent country a well-functioning transport sector is crucial for keeping the country running.”
What is being done to save transport companies?
During the preparations it will be assessed whether Mikko Ollikainen.
Text: Anna Sand • Photo: Scandic Trans hen the crisis escalated in mid-March, Finnish Trans port and Logistics SKAL presented a list of sugge sted measures to the government, a sort of wish list, as to what should be done. The decisions that have been made so far are mostly from that list and have been prepared by the Ministerial Working Group on Preparedness guiding preparedness operations related to the war.
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Preparatory actions will be carried out with regard to the government’s climate goals.
“Preparatory work has been started at the Ministry of Finance but at present there has been no decisions on refund levels or other details,” says Suvi Soppi, a tax specialist at the Ministry of Finance. “According to a preliminary estimate, a system for commercial diesel could be introduced during the second half of 2023 at the earliest.
3. COMMERCIAL DIESEL
A reduction of 7.5 percentage points is estimated to affect the diesel price by 12 cents per litre.
" A total reform of the taxation on traffic could give transport companies a tax refund on every litre of commercial diesel they have put in the tank.
The decision on the fuel subsidy supports the government’s decision from February to start preparing a tax system for commercial diesel. One of the questions to be assessed is whether it is going to be based on the present system or if the direct tax aid on diesel will be discontinued and a tax refund will be paid retroactively for diesel oil used in commercial transport. The choice can be affected by the government’s climate targets. EU legislation includes a framework for a commercial diesel system. According to the energy tax directive the minimum tax on diesel and biofuels that replaces the fossil diesel is 33 cents per litre. Currently the tax on diesel fuels in Finland is approximately 50 cents per litre. Consequently, the tax aid for commercial traffic could at most be 17 cents per litre. The tax on 100% biodiesel is already at the minimum level of 33 cents a litre in Finland and therefore no refund would be possible for 100% biodiesel. The details of the reform are at this stage unclear, but according to preliminary informa tion, the reform may cost the state around 300 million euros.
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The law on promoting the use of biofuels, or the law on the distribution obligation was issued in 2008. The purpose of the law is to promote the use of biofuels. This has been done by a nationwide obliga tion for distributors of transport fuels to supply a minimum amount of renewable fuels for consumption each year. To put it shortly, according to the prevailing requirements, fuel sellers must see to it that the diesel they sell contains a required share of bio fuels. As biofuels are more expensive than fossil diesel, the distribution obligation increases the price of diesel.
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1. THE DISTRIBUTION OBLIGATION 2. AID PACKAGE
The Ministerial Working Group on Prepared ness has also made a decision about a tem porary fuel subsidy intended for transport companies. A total of 75 million euros has been reserved for the purpose and the Ministry of Economic Affairs and employment is preparing a law granting the subsidy for three months (January-March 2022). The eligibility for the compensation will be determined more specifi cally at a later stage of preparations and it won’t presumably be until the autumn when applications will be accepted. To promote a green transition in the trans port sector the government is also preparing a holistic package of measures to support the acquisition of electric and gas-powered vehicles and also to develop distribution infrastructure for electricity and gas. 20 million euros has been reserved for this purpose.
According to calculations made by Finnish Transport and Logistics SKAL the price of diesel would go down by 35 cents per litre if all claims on biodiesel were abolished. A proposal which lowers the distribution obligation by 7.5% during 2022 was submitted on May 25th. The intention is that the law will enter into force as soon as possible. It is estimated that a reduc tion of 7.5% will affect the price of diesel at the pump by 12 cents per litre. Then it is important to understand that the transport industry should then pass on the reduction in the price of diesel. The intention is that the emission reductions that will not be implemented in 2022 and 2023 will be compensated by a raised obligation later. The distribution obligation will be 34% in 2030. the commercial diesel system will be based on the present system or if the direct tax aid on diesel will be discontinued and a tax refund will be paid retroactively for diesel used for commercial purposes.
In the summer of 2021, the area of application was extended so that it also includes biogas and renewable liquid and gaseous fuels of non-bio logical origin. The intention is to decrease fossil fuels within the transport sector in a cost-effec tive manner.
The development goes against government’stheefforts to promote biodiesel.
“There was no one in the industry with a ready answer for how to handle the situation,” CEO Mikael Löfqvist begins. “We received many phone calls from worried owners of transport companies thinking about leaving their trucks idle, as the price increases for many meant thousands of euros more in monthly expenses.
“New discussions will be initiated if the situation changes,” Löfqvist promises.
The entire sector is now waiting for more and concrete decisions from the government. The most effective method to decrease emissions would be an increased use of biodiesel through reduced fuel tax. Instead of increasing the fuel tax as the government has planned, a total reform is needed where the diesel used in goods traffic is taxed more lightly as commercial diesel. In that way transport companies would get a refund for every litre of diesel they have filled up with.
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The handling of the fuel surcharge is more complica ted than that, though. Scandic Trans has been at the forefront regarding environmental work and many of the company’s customers have chosen greener transports by preferring HVO as a fuel.
he large and sudden price increase at the fuel pumps required quick reactions from compa nies, something that has been managed well in Scandic Trans. After the first shock eased, there was only one thing to do – roll up the sleeves and to do what was required to save the transport companies.
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“Our customers were very understanding and we could agree on the new surcharge almost immediately with just about all of them. Hence the impact of the price increase on the transport companies only lasted for a period of two weeks,” Löfqvist says.
“Changes in the production of NESTE’s HVO, My Diesel, have however increased the price difference between biodiesel and fossil diesel.
From now on, the surcharge will be adjusted accor ding to the average price of the fuel every two weeks.
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Thanks to an enormous effort by the personnel, all just over 700 customers had been contacted before the end of March.
To use HVO has thus become more expensive than previously. When we introduced HVO as an alternative to our customers, the difference was 16 cents and in the spring of 2022 it was 20 cents. The price increase is 25%, a difference that Scandic Trans has so far decided to not charge their customers for.”
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A fuel surcharge based on the day price was discussed first, but it was then seen simply as administratively too“Weresource-consuming.decidedinsteadto proceed from the two weeks’ average price and after that we started to contact and inform our customers of the new fuel surcharge. Three different models were used depending on the kind of contract customers had.”
Quick action saved the transport companies
“For one customer group the fuel surcharge could be directly added to other surcharges, whereas the customers with so called all-inclusive contracts, which is a big and important customer group, were now also given a surcharge for the first time on top of the contract. The third group consists of customers with individual contracts, where the fuel share of the freight price often constitutes a certain percen tage and is based on different indexes and reference values.”
“The development goes against the government’s efforts to promote biodiesel, and we have chosen to wait and see.”
I n last year’s edition of Delivered we were able to share with you that the international transports made by Scandic Trans had increased considera bly, both from the main office in Finland and from the Swedish subsidiary, Scandic Logistics, on the Swedish west coast. That positive trend has continued and according to Joakim Lassen, the Sales Director of Scandic Logistics, the journey has only just begun.
”Strengthening the sales force has already pro duced positive results and we’ve got new customers during the spring,” Lassen continues. “Additionally, more and more enquires are coming in. Making new contacts and meeting potential customers in person has become a lot easier now with the pandemic easing up. Personal meetings are a must for building and maintaining business relationships – Teams meetings just aren’t enough,” says Lassen. Thanks to the new premises, Scandic Logistics now has a stronger and more distinctive identity.
“We have developed our business concept in coo peration with another company and we are now also able to offer loading and warehousing services here in Helsingborg. Our colleagues in Finland use this terminal as a hub, which strengthens the “we” spirit in the company and the kinship with our colleagues in Finland. It also a fact that the busier, more active days and bustle seem to have a positive impact both on the staff and general well-being,” Lassen believes.
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“Since the spring of 2021 we’ve been able to use a truck of our own for deliveries to and from southern Europe, and in the spring of 2022 we’ll have another one. The plan was to have one more during the winter but the war in Ukraine has complicated the“We’llsituation.”alsoneed to find free capacity and right now there’s a lack of drivers as many of them are from Ukraine,” Lassen explains. “These are two examp les of the problems we have to face on a daily basis and we are talking to new potential partners and contractors all the time.
The journey has only just begun
“Freight flows and volumes are steady and there are more than enough goods to be transported. The pandemic is today no longer a concern,” he says.
Scandic Logistics enhances its identity
Scandic Logistics had a very good year due to a new customer in southern Europe where they deliver 10 truckloads of ADR classified goods every week. A long-term contract has been signed with the custo mer, good routines have been established and freight flows are in balance.
It’s not only goods amounts and traffic that are incre asing – our staff and consequently the need for office space are also increasing in Helsingborg. At the turn of the year Scandic Logistics moved to new premises and the office space increased from 20 to 120 m2. As a result, Scandic Logistics is now able to offer terminal and warehousing services at the same address.”
Two more people have been hired for the office; Ludvig Holmberg (a sales person) and Jennie Dahl ström (a traffic controller), thus increasing the staff to three full-time employees plus a long-term trainee.
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“Now we can show to our customers and partners what we do here and invite them for a cup of coffee. Freight flows are not only steady, they’re increasing, and meeting this year’s budget won’t be a problem,” Lassen says. It’s an aggressive budget meaning the aim is to increase the turnover by no less than 60% compared to 2021.“But it is totally feasible. This journey has only just begun,” he finishes with a smile
Despite the pandemic, the year 2021 was a very good year and Joakim Lassen his the office in Helsing borg is very pleased with the way things are going.
" Freight flows are not only steady, they’re increasing.
Areco Profiles has five factories in four countries and one of them is located in Somero, Finland. The Somero factory employs just under 40 people and focuses on producing different types of panels, matching fittings and wall profiles.
Text: Anna Sand • Photo: metal
“It’s very clear that the factories produce different For many companies transport and logistics are a very important part of their business, even though they are outsourced to, and the services are bought from service providers. Looking at the whole picture, how successful a company is and how satisfied their customers are often depends on perfectly functioning transport and logistics services. Areco Profiles, one of the leading manufacturers of sheet metal construction components – so-called sandwich panels, roof and wall profiles and also rain water systems – is such a company.
Areco Scandic Trans transports sheet
Direct from factory to construction site
The Group serves customers in more than 25 countri es and the Somero factory has its customers mainly in Finland and Sweden, and partly also in the other Nordic verybuildingconstructionarestorage“There’scountries.nointermediateinuse;theproductsdirectlytransportedtothesiteandsitesofprojects,fromsmalltolargeones,suchassports and ice hockey arenas, malls, terminals and other large buildings where the timetable is important,” Siintola explains.
A reco Profiles is part of the Swedish, privately-owned Areco Group founded back in 1944. The Group’s business activities are focused on the construction industry and the five main business divisions are Are co Metals, Areco Steel Service Center, Areco Profiles, Areco Direct and Areco Properties. The Group today employs over 300 people and its turnover is circa 350 million euros.
There’s also one factories in Denmark where the focus is also on profiles,” he adds.
" There’s no intermediate storage in use; the products are directly transported to the construction site.
themanufacturerscomponentsconstructionfromleadinginNordiccountries
At the beginning of August big changes are being made in our production as our latest machine investment was being realized. “We look forward to a capacity increase of 25% and a continued development of product quality,” says Areco’s Sales Director Kasper Siintola.
18 products,” explains Sales Director Kasper Siintola “The two factories in Malmö focus more on profiles.
Production planning – Sales Director Kasper Siintola and Production Manager Niko Siikjärvi in the picture.
This is why well-functioning freight movements and schedules are especially important for Areco Profiles and their customers.
“Our products require machines for unloading and timetables are crucial. Delayed deliveries mean delays in construction time, which we obviously try to avoid,” he continues.
“Even in this context Scandic Trans meets our demands,” Siintola continues. “But naturally environ mental work is also done in the factory. Especially the manufacturing process of so-called sandwich panels (sheet metal – insulation – sheet metal) produces tons of environmentally hazardous waste, which today, thanks to new solutions, we can recycle and reuse.”
“Transportreliability.needs are project-based and therefore vary a lot, but every week we use Scandic Trans for transport to the sites of different building projects. Of ten the loads are big and heavy and it’s very important for all parties to make sure that both loading and un loading are done on schedule. Our cooperation with Scandic Trans has always been seamless,” Siintola says. Both Scandic Trans and Areco Profiles have paid a lot of attention to environmental issues over the past few years, and one part of this work is to choose as environmentally friendly transport as possible.
About a year ago Scandic Trans was chosen to make these deliveries for Areco Profiles thanks to their delivery
Areco’s focus is on different types of elements, associated mouldings and wall profiles. The products are used in different construction phases from smaller buildings to sports and ice hockey arenas, shopping centres, terminals and other larger buildings.
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“I work as much as I’m allowed,” he says with a smile. “As soon as the need arises, I’m ready to go without hesitation.”
Co-ownership has enabled an increase in turnover
Marcus and Björn run Rosenqvist Transport which their father foun ded more than 40 years ago.
Besides Marcus and Björn, Rosenqvist Transport today employs another 13 people and, if necessary, the company also hires contractors. Even Johan finds his way behind the wheel when necessary.
I t has been more that 40 years since Johan Rosenqvist from Pörtom founded his transport company in the spring of 1979. A lot of freight has been transported since then and today it is his sons Marcus and Björn who are taking the business forwardThecountry was in an unforeseen recession when Scandic Trans was founded by five individual traffic contractors in 1990. They all had their own vehicles and traffic licences. One of them was Rosenqvist.
“It gives a good insight into the direction Scandic Trans is going. This way we can better, and in good time, adapt our own business accordingly,” he says.
“I had one truck on international routes then and also did some domestic transport, mainly oil and agricultural products,” says Johan. With the founding of Scandic Trans, they started specializing in transporting foodstuffs and the first refrigerated truck was acquired fair ly soon. Today Rosenqvist Transport has nine of them, six operating to and from Sweden and three to and from“TheNorway.company has grown conti nuously, and increasingly since Marcus and Björn took over, something that happened in stages between 2011 and 2019,” Johan says. According to Marcus and Björn, a big part of the growth is due to the fact that the company has a co-owner in Scandic Trans. “It has undeniably played an important role,” both Marcus and Björn say. It was not a given fact that they would continue in their father’s business according to Marcus, who after his studies worked as a designer in Närko for just over ten years. Nevertheless, all that time he was also a part of the family company. Björn, who is eight years older than Marcus, has been driving since 1999. In the Marcus and Björn in conversation with Kjell-Boris Näsman. As things stand, they have 13 employees and nine special trucks transporting goods to and from Sweden and Norway on behalf of Scandic Trans.
“We have crushers both in Pörtom and in Malax where we expanded in 2009,” says Björn. “In addition to our three trucks that we use to transport gravel, we also sell crushed products to other transport companies,” he continues.
The gravel transport is mainly for house and road construction in the nearby area.
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To grow further is not a goal for the brothers; the size of the compa ny now feels just about right. “But surely it was the same previously and yet the company has grown,” Björn says. Marcus is one of the board members in Scandic Trans, which he sees as something positive also for his own company.
Currently they rarely sit behind the steering wheel of Scandic trucks themselves. Their focus is on leading the company and occasionally transporting gravel and “catching up on” everything that has happened over the past few weeks.
20 nineties the business activities were expanded with gravel transports and crushing services.
“But last summer I was actually to Sweden on holiday,” he says with a twinkle in the eye.
“My question regarding their wishes was however answered with a counter-question – what would I myself like to change in my work as a transport plan ner? Something that I have missed and something that would make both the transport planners’ and the drivers’ work more effective is a customer database including all the necessary information about the customer and their transports,” says Lindholm.
In the third phase a proposal of the project plan was finally created, which was also the purpose of the whole thesis.
fter many years’ experience of transport planning, Annamaria “Ami” Lindholm was aware of which tools were missing that could create more efficiency in the job. The topic for her dissertation was therefore obvious. Ami even has a background behind the steering wheel but with small children, being a driver was not the most practical profession to have, so she decided to study business administration with the goal of becoming a transport planner.
To execute the project in practice is not at all impossible according to Lindholm and the first step has now been taken thanks to her dissertation.
“Obviously, it has to be financially worthwhile to go through with the project and should be integrated into the system that is already being used. All the traffic planners should be part of the project group and the data collecting. These people sit on a huge amount of data and knowledge and the preparatory work could totally be done “inhouse” if only its structure was right,” Lindholm says. She is convinced that a similar database could be widely used and save a lot of her and her colleagues’ work time, and also that of the drivers as it is the drivers who most often ask for this information, and often with a tight timetable.
“It’s not only about a customer register,” she continues and clarifies. “The database would contain information starting from the customer’s different ty pes of cargo and pallets, the possibility to use double pallets, weight, height and other measurements, sites and times for loading and unloading, opening hours and exceptions to those, access to trucks and the loading dock area, specific customer requirements for example regarding the use of a helmet or other equip ment, door codes and other relevant information the drivers often ask about.”
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The title for the thesis became “A Project plan for the implementation of a customer database for Scandic Trans traffic mana gement” and the focus has been on the actual project plan and the three first parts of the project process: the project idea, the pre-study and the planning.
“I wanted to stay in logistics which is close to my heart,” says Lindholm, who has studied business administration at Novia University of Applied Sciences in Vaasa.
Within the framework of the pre-study, Lindholm conducted different analyses such as a current situa tion analysis and a stakeholder analysis, as well as defining the project’s breadth, different solution alternatives, and demands on the final product.
toshowsdissertationthewayanewtool
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Already during the second study year Ami was offered a job in Scandic Trans where she did her internship. Her study pace stalled slightly as a result of working full time, but during her latest parental leave she decided to finish her studies. When it was time to choose a topic for her dissertation, the deci sion was of course taken together with the employer.
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Göran’s different whole meat and kebab products are sold in the retail and even in the hotel and catering sector. In addition to meat products, Görans also produces dressings, sauces and branded products for other foodstuffs companies as a subcontractor.
It started more than 40 years ago as Finland’s best known snack bar. Korv-Görans became a concept all over Finland. The kebab, the best in the country, became such a success that even their competitors bought their products. Today the snack bar business is no longer part of Görans, but the focus is on industrial production.
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Görans kebab – a success story
Text: Anna Sand • Photo: Korv-Görans Kebab Ab & Anna Sand T oday Görans remains a privately owned family company based in Jakobstad. In the latest change of ownership in 2006 the strategy choices were updated and the focus completely shifted to product development and sales to the retail sector and partly also to the hotel and catering sector. The niche consists of frozen grilled meat products.
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The goal is that half of the turnover will be from the retail sector. At the moment it’s around 30% with hotel and catering and industry also making up one third each. The main export country is Sweden but there is also export to Estonia. “Exports to Sweden are about 12% of the turnover, which is more than we were originally aiming for,” Granholm adds.
The company has created its own production line, unique in Finland and even in Europe, where the raw material is converted to grilled meat and then frozen within 90 seconds.
“It means that we chose another way than the traditional one to make kebab and it turned out to be the right one.”
“From our point of view the quality of the trans port is the most important factor and it’s crucial that the cold chain never breaks. With Scandic Trans there are no problems. The company’s environmental awareness and vehicle fleet are also of importance as both we and our customers see the transports as part of business Additionally,activities.”it’salways nice when you can use your own native language. That’s what you get with Scandic Trans, plus they have knowledgeable and friendly staff,” Granholm concludes.
A lot of attention has been paid to quality certifica tion and to adapting the products to the needs of the retail sector and consumers.
“It’s possible that we will succeed with it already this year, and then it will only take a few minutes for the entire produc tion chain to go from raw meat to a loaded product.”
“When we bought the company, it was primarily a packing plant, and we have since made enormous investments in production,” says Evert Granholm, the Deputy CEO. Today we have a new and top-modern factory where we, from an energy and environmental point of view, have chosen to be at the forefront also at a national level,” he continues.
The products are directly transported from Jakobstad to various central storage sites and there is no direct trading at all. The volumes exported to Sweden vary from week to week. Transport has been provided since 2021 by Scandic Trans.
“The quick freezing, done at -100°C, is a key to the preservation of the high quality, as are the domestic raw materials which we don’t tamper with,” Granholm explains. The development is continuous and the goal is to automate packing and loading on pallets before 2025.
“The fact that we can cut up all meat ourselves has been crucial for us being able to only use domestic raw materials also in the future. The number of additives, E numbers, is always minimized and we consider the freezer as the best and most natural preservative. If you freeze your food, you won’t need any additives,” says Granhold.
The fact that we can cut up all meat ourselves has been crucial for us being able to only use domestic raw materials also in the future.
Another extension of 1 000m2 is already planned for the future and new products are constantly being developed and introduced. A big seller right now is the whole meat chicken kebab.
The setting-up of the grill and refrigeration line has had enormous importance for the company and has also been gratefully welcomed by the customers, for whom in their daily work it makes all the difference how the product is packed and how it is defrosted.
Evert Granholm is the Deputy CEO of the company that was founded in 1988 and has doubled its turnover seven times since 2012.
All three customer segments have grown steadily and in the past ten years the turnover has increased from 3.6 to 22.5 million euros.
“The challenge we are facing at the moment is that we are not able to answer all the inquiries we get as a result of a lack of raw materials,” says Granholm.
The new production facility of 3 000m2 was built in 2019 and will now be enlarged by another 1 300m2, consisting of a storage area, a freezer and a butchery.
Our goal is that you as our customer experience the transport of your goods as simply as possible. That’s why we include so much more than just the transport, and you can reach us whenever you need. We are always at hand, around the clock, and with us you get your very own contact person – Someone who makes your dealings with us smooth, personal and safe. We have decided to call him Johnny. But it might just as well be Yvonne in the finance department, or Jan at traffic planning. Their main focus is your unique transport. All of us at Scandic Trans are your Johnnys - every day of the week. No problem, we’re sending Johnny. We’re sending Johnny. North European carrier with strong specialist areas www.scandictrans.com +358 20 120 2500 Mirko Murtomäki is the new “Johnny” at the Vantaa office. Mirko’s task is to develop European transport and operations in Southern Finland – something we will certainly return to in the next issue of Delivered.
