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NEWSLETTER March 2012

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net

... and other related news

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Support to Bothnian Corridor as TEN-T proposal

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New reports on cargo flows and capacity gaps


NEWSLETTER2/21 March 2011

Back after a busy week in Brussels... I was privileged to become acquainted thru Mid Sweden European Office with our Norwegian friends who had training regarding EU issues in order to better understand the level at which the EU affects Norway in practice. A very good training which described in a highly instructive manner EU rules in the past, the ones recently adopted, the new ones to come and how they affect Norway since Norway isn’t a member of the EU. The idea was also that I would have the opportunity to talk about our NECL II -project but also to share experiences in general terms when it comes to international projects. Besides Midnordic Green Transport Corridor a project called Green Highway was in place and did likewise. Participants were from different counties, regions, government agencies and some courageous politicians from all over Norway. The Sulphur Directive (IMO), the EU White Paper, the allowances for aviation, Europe 2020 and a lot of other things were discussed, encountered and soaked how they would affect or not, how time conditions were like. People were very active and inquisitive but ... The feeling that suddenly came over me was that everyone listened, participated and were eager to learn, but yet at the same time they may have felt that they really didn’t have any responsibility to handle or even address the issues at home since there was no decision taken yet what to do... at the national level ... and they did not have direct mandate to act. And if no one has told you what to do ... can you really do anything without getting clear directives? I mean it may happen that you do wrong things or go beyond your mandate and that might get uncomfortable. The feeling nagged me and I spent time thinking about my experience and the more I thought about it the more concerned I got. Suddenly I realized that this wasn’t symptomatic for Norway and this training session. It’s symptomatic in general for most people. We are probably not better at this in Sweden or Finland (or any other European Union countries for that sake). We all tend to sit patiently on our butts at different decision-making levels and just wait for

someone else to take a final decision on how the hell you are supposed to do and act. Sure, some few brave projects push hard the augmentation forward but one must realize that cumulatively, these projects are mainly mayflies looking from an infrastructure lifecycle perspective. Suddenly I realize the actual problem ... It’s never done!…It’s never finished!...It’s constantly evolving! The extent of this understanding is infinite because suddenly I realize that WHEN the actual decision is made, it’s usually too late or at least there is a very short time before it has to be completed, operational and functional. A good example is the Sulphur Directive. If you follow the ongoing debate, you get the feeling that this is something achieved in a very short time. After some quick googling I found a document from the IMO [Marine Environment Protection Committee

(MEPC) - 57th session: 31 March - 4 April 2008: http://www. imo.org/blast/mainframe.asp?topic_id=1709&doc_id = 9123]. IMO made a long-term strategic decision as

early as 2008, and there may be even earlier related documents than this. The problem is that NO ONE took hold of the case and started in time to drive the development in the right direction. Everybody´s first waiting for a “decision” to be made by someone responsible, saying exactly what to do, when to do it and how… And when the decision is finally made EVERYONE agrees that it was taken too late and there is to little time to solve the problem and it will be a costly thing. Now we are facing a similar situation, I’m talking about the EU White Paper, which implementation itself has not yet been decided upon on detailed level but which clearly maps out the future from a 2050 -perspective. This White Book has been under discussion for a long time on the official EU level (2007). By 2050, key goals will include: • No more conventionally-fuelled cars in cities.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER3/21 March 2011

• 40% use of sustainable low carbon fuels in aviation; at least 40% cut in shipping emissions. • A 50% shift of medium distance intercity passenger and freight journeys from road to rail and waterborne transport.

achieved it requires, in addition to a development of the transport system, also a general infrastructure development in order to meet future requirements and then it’s a question of having a real International / Global perspective.

This IS actually a paradigm shift!

- The industry needs to redirect their technical development moving toward a technology that provides smarter resource solutions. It takes no rocket science to understand that electricity is the future and we need to have that kind of technical solutions pretty fast.

History shows that there will NOT be national decisions on time so we must solve this using our wisdom and experience at all levels and actually to learn from this.

- At individual level, one needs to find out what the future has to offer. You need to know what will happen so you can make wise decisions concerning your own life situation. Your contribution counts!

• All of which will contribute to a 60% cut in transport emissions by the middle of the century. …and new regulations for heavy vehicles vs. CO2 are expected around 2013!

We know the EU’s clear direction and it’s basically the same as an actual decision to relate to. If we are going to succeed to reach the goal ‘till 2050, we need to give communities, industry, vehicle manufacturers, citizens and others affected a reasonable timeframe, ahead start and opportunity to start in time so it’s really, really, really crucial to get started NOW.

We_are@paradigmshift.now ...Deal with it!

We also need to understand on all levels that EVERYONE must contribute in order for us all to succeed. What can You, I, We all do then? - At national level there is need to be crystal clear. There is no time to “be fuzzy around the edges”. We need political courage at national level. Even if you don’t have all the answers you need to realize that the EU’s focus for 2050 will be the basis for the future society ... Nothing do discuss…Final!! Just do it. Beside the White Paper there are clear directions from the EU to GO for cross border corridor solutions “All the way solutions” and there is also a clear focus that the corridors should be intermodal, green and efficient. - At governmental level there is a need to incorporate the EU approach in all decision-making. We’re not only talking about infrastructure but in general terms. All decisions need to have a positive effect on the future. If the goals for 2050 are expected to be

Per-Åke Hultstedt is the Project Manager of NECL II -project, representing the Leadpartner County Administrative Board of Västernorrland. per-ake.hultstedt(at)lansstyrelsen.se, tel. +46 70 190 4195.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER4/21 March 2011

Survey on bottlenecks and capacity gap A regional economic study from especially a Swedish and Norwegian point of view The study is though of value not only to Mid Nordic Region and Corridor but also to the entire Baltic Sea Region, as it illustrates the effects on society and regional development of investments removing flagrant bottlenecks in the transport infrastructure. The name of the report is in English “All puzzle bits in place” (“Alla pusselbitarna på plats”). At the moment it is only available in Swedish, but will be translated into English as soon as possible. The study reviews both goods and passenger transports. It is important that the benefits for all types of transports are observed as they (like the most other investments in infrastructure) will be needed to motivate the investments. Four scenarios The study describes how tangible improvement of the Meråker Line in Norway and E14 in Norway and Sweden (Hell/Stjördal — Storlien) would influence on business/industry, population development, settlement patterns, services and education facilities, in a short and long time perspective. Finland is expected to largely follow the same development pattern as Norway and Sweden, where the link between infrastructure and community development is considered to be universal. The effects are described out of four scenarios: A. No actions – the zero -alternative B. An electrification of Meråker Line and an intermodal port in Trondheim C. Shipping service between Sweden and Finland (incl. scenario B) D. A fully built and functioning corridor. Related: Heavy-Duty Vehicles (HDV) represent about a quarter of EU road transport CO2 emissions and some 6% of the total EU emissions. In spite of some improvements in fuel consumption efficiency in recent years, HDV emissions are still rising, mainly due to increasing road freight traffic. A comprehensive strategy to address HDV emissions (from both freight and passenger transport) is therefore essential and under preparation.

EU White Paper and increased use of railways Environmental issues will become increasingly important in the future for transports and EU´s White Paper´s goal to reduce road transports and to transfer them onto rail and shipping will be a catalyst for the creation of Midnordic Green Transport Corridor. The main priorities in the corridor are related to railways. And connected to the railway capacity should also be included the tourism industry development and transportation needs. Another prerequisite for a stable and viable transport corridor is a shipping service between Sweden and Finland in the Mid Nordics. An intermodal port in Trondheim with development opportunities is also a prerequisite for the corridor. Another important condition is that freight volumes are sufficient, but also infrastructure measures between Sweden and Norway are an important prerequisite for as the business community should see the corridor as an alternative to the existing highways and national main routes. Other supporting actions are: • Promotion of the corridor (both freight and passenger traffic) • Anchoring at the political level • Improved cooperation with industry by showing that the costs are lower and better environmental benefits • Stimulate new trade relationships across national borders • Look at the potential for increased flow of goods in both directions • For passenger traffic: proper scheduling and investment in tourism • In order to strengthen the corridor should be at the stations and other major hubs plan the land for residential, business and tourism.

Conclusions It is extremely important that the Midnordic Green Transport Corridor is anchored in its proper context. It is not a highway but should be seen as an important complement and an alternative to the main routes that exist today (eg the Bothnian corridor). The route enables in many cases smart transport solutions from local, regional, national, international and global point of views. Transport modes can vary according to the actual need and when relieving national main

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER5/21 March 2011

ps on the corridor highways the corridor will contribute to a better capacity usage on several levels. The biggest capacity gaps on the corridor at the moment are the Meråker Line in Norway and the lack of a solid and well-functioning shipping service between Sweden and Finland. More about these bottlenecks on pages 8 18 and in this letter. An intermodal port in Trondheim is necessary for a full capacity of the route and an international and global connection. There are also cross border issues between the countries on the corridor which need to be solved in order to get proper functionality in the corridor. Effects of above mentioned improvements will be local, regional but also national. Most significant profits will result from an extended international and global markets (Russia, Asia ). A transport corridor is never stronger than its weakest link. It is therefore necessary that the action takes place along the entire route, with a focus on strengthening the functionality of the corridor all the way. Local capacity gaps/constraints will affect the transport corridor as a whole and therefore a common vision with concrete initiatives in Norway, Sweden and Finland is required, which all collectively contribute to a fully working corridor solution.

Helena Olsson who was the contract manager in the survey points out the most essential:

“It is important to see the big picture and the connection of local gaps to the entire route. Future efforts should be coordinated..! The impact of an effort to a gap can be significantly greater for the corridor than what we see locally.” More information about the report (available on midnordictc.net): Helena Olsson, contract manager helena.olsson(at)vectura.se Tel. +46 10-484 41 17

Picture below: Business Manager Jan Andersson from Åre explains the importance of well-functioning communications for a tourist centre.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER6/21 March 2011

New report: Cargo flows and passenger stat Objectives in the report are to analyze existing cargo flows in the Midnordic Green Transport Corridor, to find potential cargo flows and locate cargo-owners, exporters and importers who may be willing to transport their goods in the corridor in the future. Another target is to show passenger flows which could support new ferry connection from city of Kaskinen to Sweden. The produced report consists cargo flow analysis and review of passenger statistics, mainly across Gulf of Bothnia. Cargo flows between Norway and UK/ Ireland and ferry connections from Norway to UK have also been collected. Limitations of the study: The study is focused on cargo traffic. Railway cargo traffic and road cargo traffic in Finland, Sweden and Norway are analyzed. Railway cargo traffic analysis between Finland and Russia is mainly focused on transit traffic analysis. Also cargo traffic at sea has been studied.

max loads on Norwegian roads, • To establish the missing link i.e. a competitive ferry liner service between Kaskinen and a Swedish port, • To develop railways infrastructure and connections between Kaskinen and Seinäjoki and further through Parikkala border to Russia. • To have marketing personnel for ferry line both in Finland, Sweden and Norway, • To minimize intermediate handling occasions while cargo in transit, • To have enough ferry capacity (also in summer time) with suitable scheduling, • To make the route price and quality competitive, • To utilize renewable fuels in transport vehicles and to gain new cargoes from/to Russia to this Midnordic Green Transport Corridor.

In this report, passenger traffic on MNGTC has been studied only superficially by collecting and analyzing passenger statistics. Flight traffic and pipeline transports (mainly gas from Russia) has been excluded from this work. The study includes also a summary from a questionnaire sent to export/import companies in Norway, Sweden and Finland. The companies were asked what kind of problems or bottlenecks they have noticed which make their import and export deliveries more difficult and how they would like to improve the corridor. 66 companies in total answered to the questionnaire.

Conclusions Total international cargo traffic through Midnordic Green Transport Corridor via route Storlien Haparanda/Gulf of Botnia will grow from 6,4 mill.tons in 2010 to ca. 7,55 mill.tons in 2016. From this ca 7 mill.tons/a Midnordic Green Transport Corridor together with new Kaskinen-Sweden ferry can achieve ca. 1,5....2,0 mill.tons/a by year 2016 including Trondheim-Sundsvall/Härnosand route - if following development steps can be implemented: • To implement infrastructural improvements (e.g electrification of Norwegian side railway etc), • To decrease throughput times and to increase truck

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NEWSLETTER7/21 March 2011

tistics “Too high prices (...), crowded ferries between Finland and Sweden, especially during summer”. “Every solution that makes international transports more cost-effective and improves punctuality are interesting”. (companies´answers when asking about bottlenecks on the east-west corridor)

The report was made by Logiwin Ltd, Finland (Feb 2012) and is available on www.midnordictc.net Further information: Kari Veromaa, consultant in WP4, Logiwin Ltd. kari.veromaa(at)logiwin.fi Tel. +358 40 551 6679

Potential of a ferry line between Kaskinen, Finland and Sweden It has been estimated that from 2012 to 2016 the ferry line Kaskinen-Sundsvall/Härnösand can carry 70.000...450.000 tons/a.This estimate is based on statistics analysis, questionnaire responses and on complementary interviews. This cargo movement onto Kaskinen-Sweden ferry line will need following conditions and actions: • Suitable port in Sweden to attract cargoes • Shipping company with well-experienced resources, significant marketing efforts and strong balance sheet to sustain even financial losses during first or second operational year, • Client tailored schedule, enough departure frequencies, and suitable vessel, • Required single cabins and eating possibilities for lorry drivers and occasional passengers, • Ferry to keep its schedules also in ice or stormy conditions, • Enough lorry/trailer capacity also during summer tourist season • Quality oriented and price competitive service. Further studies will be implemented: eg. the costs of target ports and their infrastructure will be clarified. Suitable ferry/ship types will be compared. Also a Business Plan of shipping company/cargo liner between Sundsvall Ports Region and Port of Kaskinen/Finland. Based on results of earlier activities a business plan for the new cargo liner shipping company will be done. The cargo liner company will do traffic between Sundsvall Port Region and Port of Kaskinen. Thus the shipping company candidate can immediately be aware of business opportunities. Read also about the railway track Kaskinen-Seinäjoki on page 9.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER8/21 March 2011

Related issues on the corridor The Meråker -Line in Norway

Norwegian and Swedish actors aim to to establish an association which aims to speed up the actions for electrifying the Meråker Line and to quickly allocate investment funds for the project in national plans. The initiators aim to find funds for the project as advance investments in Norway and to implement the project during 2015. These are seen as necessary actions for improving railway transportation between Norway and Sweden. An electrification of Meråker Line would mean huge improvements for both freight and passenger traffic. Read also page 18.

The challenges of Quark traffic between Finland and Sweden

RG Line Oy Ab is a Finnish shipping company founded in 2001 that has operated a ferry line for passenger and freight vehicles between Vaasa, Finland and Umeå, Sweden, across the Gulf of Bothnia. The route has received regional co-financining from both Finnish and Swedish authorities. The shipping service is very important for local industry and also statistics show that export freight has increased during recent years. The company’s sole ship, the RG 1, has though had difficulty in coping with winter navigation in heavy ice during the last two winters and raising fuel costs have made the operations uneconomic. The company filed for bankruptcy in autumn 2011, but withdraw it later. The negotiations of implementing a bankruptcy or debt restructuring are handled in court. The traffic is today continueing as usual although the future is unclear. RG Line has reported that the ferry operates according to previous time schedule until summer. According to public media RG Line company has told to be eager to invest on the future by emphasizing environmentality, eg. in turning the new “Greenline”-ship to operate with LNG. With help

of these actions the company would be able to offer a solution for the Quark traffic for atleast 15 more years. Long-term solutions needed Recently Finnish and Swedish transport authorities has in cooperation started up a workgroup in order to come up with a long-term solution for transports over the Quark. The group will present a final report in autumn 2012. If public co-funding is still on table will be seen. NECL II is following the issue, but would gladly see a solution where the state financing would rather be formed more generally (per ton of goods, per passanger, per car) so that companies could compete on equal terms, but also make the procurement in a larger scale in the Midnordics. And even not just merely for this route, but from a wider point of view, ie. including maybe also Vaasa-Umeå + Sundsvall-Kaskinen + GävleRauma -routes, in order to get an overall larger volume which can be managed from a financial perspective. This would allow that not all the routes must have the same profitability. Background: As a consequence of Finland and Sweden joining the European Union, the Quark-route lost its status for taxfree sale onboard in 1999. The volume of passengers has since dropped to one tenth compared with the numbers during the tax-free era, and the previous well structured cooperation across the national borders has weakened considerably. At the same time, other ferry routes have, thanks to special provisions exempting them from the tax-free rule, been able to retain their privileges and increase their passenger volumes. (source: Analysis of Transport and of the Prospective Bridge-Tunnel System Across The Kvarken Strait). Picture below from www.rgline.com

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NEWSLETTER9/21 March 2011

The future of Seinäjoki-Kaskinen railway?

The track has been built in 1912 and is 112 km long, also known as Suupohja track. The old track is in poor condition and demands plans. The Finnish Transport Agency recently made a project evaluation about Seinäjoki-Kaskinen-track renovation where two possible alternatives for the track were investigated: an improved maintenance or stopping the traffic on the track. The result of the evalution did not satisfy local actors. The volumes on track and Kaskinen port shipping have decreased in recent years but, the track is still important to the user industries. The track renovation is estimated to cost between 90 -124 M€ and it would allow the line of traffic to continue well into the future. If the line can not be improved, track traffic stops by about ten years from now. Until then, the track can be maintained by means of enhanced maintenance. According to Finnish Transport Agency an enhanced maintenance of the track would cost around 1.4 M € per year. Today transportation by rail is more expensive than by truck, due to the poor condition of the track. Unfortunately the prizing policy of Finnish railway operator results in the shift from rail transport to rubber wheels and cargo transfer to other ports, which has created a vicious circle. Numbers claim a reduction in traffic, which is why the track is not profitable.

City of Kaskinen and other actors appeal for a renovation Kaskinen city and private companies have in recent years invested millions of euros into development of Kaskinen port. Now it is feared that the investments runs out without the security of the port rail link. The local municipalities and politicians have appealed to the transport authorities to reconsider the future of the railway line. In order

Source: Finnish railways 2011, publication of Finnish Transport Agency.

to ensure the region´s emplyment and industry the renovation should be started in 2012. The track is an esstential link between the port of Kaskinen and the logistic centrum of Seinäjoki where the plans to expand and develop intermodal transports are far and increased use of railways is also a EU level goal. The track services national forest industry, for example M-real, Finnforest, Metsäliitto. The Finnish Forestry Centre in the region has stated that their railway transports would grow into 25% of all transports IF the investments needed are made for the track. This also demands more loading stations for round wood along the track. NECL II is following the issue and has left a statement on behalf of an improvement of the track. Local actors have formed a work group for the issue and research also other financial resources for the railway. (The project evaluation of the track, in Finnish, is available on www.midnordictc.net) More information: Marlene Svens, City director of Kaskinen marlene.svens(at)kaskinen.fi, tel. +358 400 868 780.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER10/21 March 2011

Development of border crossing between Finland-Russia

Border traffic in Southeast Finland is the heaviest it has ever been – and strong growth continues. Qritical questions are: How to prepare for increasing freight traffic? How to prepare for an increase in passenger traffic due to travel and services?Traffic is increasing strongly – what about the border-crossing resources? The border of southeastern Finland and Russia saw a record number of crossings over the past year: New figures released by the Frontier Guard reveal that 8.6 million people crossed the international boundary over the last 12 months, marking the highest ever figure for the border and a traffic increase of 28 percent from the previous year. The Nuijamaa and Imatra crossing points saw the biggest change, with border crossings up by 36 percent and 39 percent, respectively, in 2011. Similarly, the Vainikkala checkpoint saw 27 percent more international travellers. The increase in cross-border traffic is attributed mainly to increased shopping trips by Russians to the Finnish side. Four out of five of those crossing the border are Russians. Tourists cross into Finland to buy clothing, shoes, food, and other products which are often cheaper and of good quality in Finland than in Russian stores, thanks to tax-free and duty-free sales. However, the volumes of transit traffic have been declining and goods transport has not recovered to the pre-recession levels. Although the queue of lorries waiting to get into Russia can reach lengths of more than ten kilometres during weekends and occasional rush hours, and is mostly due to slower border formalities on the Russian side, the growth in goods traffic has

Recent positive news from Russian side is that the Karelian regional administration and Vladmir Putin have confirmed that the Syväoro border station will be included in the list of border objects to be given priority. http://www.barentsobserver.com/upgrade-for-russian-finnish-bordercheckpoint.5032864-116321.html

slowed down toward the end of the year. In general cross-border truck traffic between Finland and Russia has increased over the past years at an annual rate of 15 to 20 per cent. During the current winter period the situation has nevertheless changed due to economic recession, but also poor frost heave conditions on the Russian side effect the truck traffic. The amount of traffic varies substantially depending on the season, the day of the week and the hour of the day.

Rising traffic volume bringing extensive upgrades to border stations Crossing points on the border with Russia are to be upgraded rapidly in order to cope with the sharp increase in cross-border traffic. About EUR 40 million is to be spent in the next two years on improvements to crossing points in the southeast of Finland. The border stations were not built to handle the volume of traffic that they now have to cope with, traffic across the border has grown at such a fast pace that upgrades at border stations have not kept up. The most extensive upgrades will take place at the border stations of Vaalimaa and Imatra, where new lanes and inspection points will be built at a cost of about EUR 15 million. It was just five years ago that the new facility at the Nuijamaa crossing was built, and a new expansion is already needed. Not all of the money has to come from Finnish state coffers, as Finland is getting a grant of EUR 18 million from the European Neighbourhood and Partnership Instrument ENPI. An equivalent sum of money will be spent on the Russian side to ease congestion. Especially the Svetogorsk border station (with Imatra on the Finnish side) and the roads leading to it are to be upgraded. Half of the ENPI money is coming from the EU, a quarter from Finland, and a quarter from Russia. For example Russian connections to the temporary crossing at Parikkala are being improved with ENPI-funding as two main roads on the Russian side will be reconstructed during 2012-14 with 7,2 M euros.

The NECL II -partnership believes that current border strategies do not respond to future demands and more forceful measures need to be taken. One way to cut down the ever-increasing traffic jams of Southeast Finland is to turn eg. the temporary border crossing point in Parikkala into a permanent international station for both passenger and freight traffic. Sources: Border strategy of Southeast Finland and various newspapers. Picture: Border crossing points on Finnish-Russia border, from Border strategy of Southeast Finland.

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NEWSLETTER11/21 March 2011

Sulphur regulation different opinions

arouses

According to MEPs recent voting on draft legislation, shipping fuels should be subject to stricter sulphur limits to protect public health and the environment. But for example the Finnish industry sees the regulation as non-equal and demand at least more time to make adjustements. Tougher EU rules on sulphur pollution from ships have serious impact on environment but also on public health. The current sulphur limit of 3.5% should be cut to 0.5% by 2015 and to 0.1% by 2020. To comply, shipping operators should use lower sulphur fuels or install technical ‘abatement’ equipment, such as scrubbers, which achieve equivalent results. Authorities should be allowed to detain and fine ships in breach of the rules.

For example the Finnish industry hopes for easing of sulphur directive According to the Finnish Industry the EU Sulphur Directive threatens to undermine the preconditions for the Finnish export industry. It will fundamentally weaken companies’ competitiveness and distort competition even within the EU. According to a recent estimate, the Sulphur directive will lead to as much as € 1.2 billion, or 24 000 work years, in extra costs for Finnish foreign trade. The Finnish industry feels that the Commission is adopting the International Maritime Organisation’s decision on a sulphur cap in the Baltic Sea, North Sea and English Channel in its directive without forewarning – without investigating the effect on employment and competition for member states. The sulphur regulations will be significantly tighter in northern areas, and they will enter into force ten years earlier than in other maritime areas, which will weaken the competitiveness of Northern European countries within the EU and in relation to other countries. So, Finland is calling for easier terms in adopting the proposed directive. At present the EU wants the directive to take effect in four years which would raise the costs of Finnish export industries – so much so that the government decided to ask the EU for some flexibility in the scheduling of the implementation, by up to a decade. In Sweden higher costs for sea transports are calculated to decrease Swedish sea transports by 2% of the total amount. There are though plans to increase the support for green shipping.

The new SECA zone, photo: FreeMap.com

New business opportunities? The supporters of the regulation reason that besides of clear positive environmental effects the regulation also bring along new business opportunities. For example the Finnish industry can benefit by developing and building sulphur filters to the ships. Already the Finnish Wärtsilä is planning and building sulphur filters and future business opportunities are promising for the company. NECL II is following closely the issue. To be noted is the fact that the Port of Trondheim is located outside the restrictionsarea. Related news can be found on our website midnordictc.net. Next the sulphur regulation will be discussed in national negotiations and committee vote opens the possibility of negotiations with Council ahead of a plenary vote in Parliament (provisionally scheduled for 22-24 May). (Sources:http://w w w.europarl.europa.eu/news/en/ pressroom/content/20120130IPR36511/html/Shippingfuels-on-course-for-better-health-and-environmentprotection and http://www.teknologiateollisuus.fi/en/news/ announcements/2011-10/sulphur-directive-a-threat-tofinnish-welfare-and-jobs)

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NEWSLETTER12/21 March 2011

NECL II supports the proposal of Bothnian Corridor to TEN-T network The Bothnian Corridor is a part of the European Commission proposal for the TEN-T core network. It spans the area from north to south around the Gulf of Bothnia and connects with the westeastbound Nordic Triangle corridor in southern Finland and central Sweden. The corridor with its ports is a strategically important transport route for Finnish and Swedish industries, especially exportoriented extractive, metal, and mining industries. At the moment, the traffic system of the corridor has many bottlenecks causing expenses, delays and uncertainty for business activities that depend on transports. The development of the Bothnian Corridor is a necessary precondition for ensuring the sustainable economic growth of Northern Europe. The aim is that the Core Network will comprise the strategically most important parts and will form the transport backbone of Europe and be completed by the end of 2030. The Bothnian corridor is meaningful also to eastwest connections. The Midnordic Green Transport Corridor complements the Bothnian Corridor and this integration increases the total transport capacity within the transport system and transport flows would increase aswell.

The Bothnian Corridor and the proposal for TEN-T core network.

The aim in new TEN-T policy is to try to give priority to projects that deliver European added value. In practice, this means that funding goes to projects that improve transport connections between more than one Member State, which are most productive relative to the investment made, and which support universal aims in transport policy, such as sustainable transport.

More information: • BSR-project Bothnian Green Logistic Corridor: www.bothniangreen.eu • TEN-T: http://tentea.ec.europa.eu/

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NEWSLETTER13/21 March 2011

About national transport strategies The proposed investments in NECL II are planned to be entered in each of the national transport infrastructure planning programmes. But what is the current situation in different countries within national transport plans and strategies?

Sweden The Swedish Capacity Analysis (Kapacitetsutredningen 2012) for the transport system will analyse the need for increased capacity for the years 2012 - 2021, 2022 - 2025 and 2050. Starting points are national and regional plans and four-stage principle. Different stakeholders have been invited to income with their point of views to the Swedish capacity study which puts the heading for Swedish transport policy towards year 2050. NECL II has put together an aggregated report from the project´s point of view. The investigation will be finished by late April 2012 by Trafikverket (the Swedish Transport Administration). The analysis and investigation forms arguments for the future infrastructure proposition by the Swedish government. More information on: www.trafikverket. s e / Fo r e t a g / P l a n e r a - o c h - u t r e d a / Samhallsplanering/Kapacitetsutredningfor-transportsystemet/

Finland The Finnish Transport Policy Report (Liikennepoliittinen selonteko) is under preparation and is scheduled to be submitted to the Parliament in April 2012. The needs and viewpoints of a range of groups must be taken into account in the development of the transport system. Efficient and smooth public transport services support the attainment of transport policy objectives. The report sets out transport policy guidelines and the associated action plan until the end of 2022 as well as a vision and desired state for transport policy for 2030.

Photo: Norden.org

Among other things, the report outlines principles for the funding of the transport sector and traffic management, issues specific to large and expanding urban areas and preparations for greater traffic volumes from Russia. More information on: www.lvm.fi/ liikennepoliittinenselonteko

Norway The Norwegian National Transport Plan (Nasjonal Transportplan 201423) was proposed and presented by Transportation agencies and Avinor in February 2012 and handed over to Transport Ministers. The proposal will be the basic material for the Ministry of Fisheries and Coastal Affairs work with the White Paper on National Transport Plan. All investigations that have been made for the plan are important fundamental documents and describe the needs and possibilities for developing the base network within a 30-year perspective. More information on: www.ntp.dep.no

Russia Russia has adopted two national transport strategies in recent years. In May 2005,

Photo above: example of transport projects during 2012-15 in Finland (source Keskisuomalainen 24.3.2012)

the Russian Ministry of Transport adopted the Transport Strategy of the Russian Federation to 2020. Three years later, in November 2008, the Russian Government adopted a similar strategy which extends until 2030. The amendment of the original document became necessary mainly because of the rapid change in the global economic situation. For example , according to Strategy of the Railway Transport Development 2030 TransSiberia Railway TSR is a key chain in the development of the Russian railways system to insure Euro-Asian transport links. Russian part consider the possible volume of transit container transportation via TSR (“West-East” corridor) could be 250-450 000 TEUs. Unfortunately there are certain “bottlenecks” which hinder development of TSR transit - cross border issues for instance (source: TransBaltic -report 2010) Link to the official strategic Russian transport planning documents (but in RU language): http://www.mintrans.ru/ activity/detail.php?FOLDER_ID=439

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER14/21 March 2011

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Photo: Norden.org Arctic Circle

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DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net

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NEWSLETTER15/21 March 2011

Options for the new logistics centre in Trondheim There is a need for a new and modern freight terminal in the Trondheim area and the conceptassessment made by the Norwegian National Rail Administration (Jernbaneverket, JBV) shows that both options in the south and east of Trondheim are still relevant. JBV recommends that the concept of “combined south” stands as a basis for further work with “logistikknutepunkt” in Trondheim. By this recommendation JBV wants to contribute competitiveness for business and also take into account environmental issues. The consultation resulted in 63 input from all interested parties and stakeholders. Central questions have been: “What solution would end to more goods by rail?What solution end to more goods by sea?And what contributes to less freight traffic in and through the center of Trondheim?”. The aim is to get such a solution that safeguards the future trimodale (rail, sea and road) transports in central Norway. Recommendations for next steps: JBV recommends an environmental impact assessment of the concept “combined south”, in combination with efficient

connections to port in Trondheim. The study must include land use plan, logistics analysis, evaluation of the phased development plan and the necessary clarifications of the railway, terminal, road and port. This should be implemented in close dialogue with all stakeholders, other regional agencies and planning authorities. In addition, it initiated a plan to link the logistics functions so as to create opportunities for an integrated solution even if the functions are split. The report “Hovedrapport: Konseptvalgutredning Photo: Norden.org (KVU)fornyttlogistikknutepunktiTrondheimsregionen” in Norwegian only on: http://www.jernbaneverket.no/ PageFiles/17231/2012-01-13%20Hovedrapport%20 KVU%20nytt%20logistikknutepunkt%20 Trondheimsregionen%20v2.0_rev190112_Siste2.pdf The report is also an important input to the next National Transport Plan 2014-2023. More information, in Norwegian: http://www. jernbaneverket.no/no/Prosjekter/Utredninger/ Godsterminaler/Terminal-i-Trondheimsregionen/ Anbefaler-delt-godslosning-sor-for-Trondheim/

Picture below: options for the new logistics centre in Trondheim, from the report.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER16/21 March 2011

Food transports important for the new logistics area in Seinäjoki The new planned logistics centre in Seinäjoki will be built in the middle of the strongest food industry region in Finland. Benchmarking has been made in Europe and the belief that east-west combined transports have demands in the future is strong. The location of Seinäjoki is excellent. New business opportunities and wellfunctioning logistics are best developed in cooperation with numerous partners. For example the new planned Logistics area/combiterminal to Seinäjoki is being planned together with eg. local food transport companies, in order to find costeffective solutions. There are approximately 170 food industry companies in Southern Ostrobothnia. The area´s development is built on Finnish companies like Atria and Valio, but also vegetable wholesalers, and small growing local food producers. In particular the food industry companies and the logistics centres supporting their operations have developed methods that benefit all the logistics service solutions in Seinäjoki. Next steps The starting point for the next stage of the whole logistics centre is to increase the motivation of companies. The correct choice of assignments increases enthusiasm. Special assignments include logistics and links to central firms. A company marketing its products is looking for precisely these services. The future shape of progress cannot be predicted yet. There are several options. What is essential at this point is for the pioneers of logistics in Southern Ostrobothnia to have their voices heard.

Photo: Norden.org

Several issues need to be solved. By no means are companies merely passive users of the logistics centre. The most essential background information is the report concerning the flow of goods for the food industry. It is important to get information about the amount of goods being delivered to Helsinki, Oulu and Jakobstad along with the return loads in order to assess the correct situation. Analysing the stream of goods to and from Russia is also an essential target. The logistics centre in Seinäjoki can serve as a model for the whole NECL II -project. The report: “Logistics centre in Seinäjoki as a focal point for the food industry” available on www.midnordictc. net. Report by Tietoliike Kari Virtanen (Feb 2012)

More information from: Ari Lehtinen, Project Manager SEEK, ari.lehtinen(at)seinajoki.fi, tel. +358 40 7748 333.

Picture on the left: Hahkaway Ltd. is a logistics company based in Seinäjoki, which offers all-round services to the food industry.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER17/21 March 2011

ICT first Case study: Matching of empty containers at the port of Söråker, Sweden We are currently implementing the first test case using real time data and tailor, extend and optimize further the existing modules in the portal. In this case study the port of Söråker, located 20 km north of Sundsvall in Sweden and operated by Delta Terminal Ltd. is chosen. The possibility to use the ICT-portal to match containers to available cargo routes will be evaluated. The procedure is today performed manually by an operator today using telephone and spreadsheets and this procedure could be improved a lot by using a portal.

Photo: Norden.org

Today’s business process and practical handling of containers has been analyzed and a development plan for the case study is now present. Today one of the shipping lines has container storage at the port of Söråker. The main idea is that small- and medium sized companies will be offered to book empty container space for their freight transports out from Söråker. This will give cheaper and more environmental friendly transports, as well as, promoting a sustainable trade and commerce in the Sundsvall area. Evaluation of the case study will be in close cooperation with the involved companies and the case will end March 2013. Delta Terminal AB will take an active part of this development serving with practical knowledge, business contacts and information from their database system. A working group has also been formed with representatives from Delta Terminal AB and the Mid Sweden University to perform this development.

Food export to Russia - case studies in NECL II

Rapid growth experienced in foodstuff exports to Russia. Especially Finnish food is in high demand in Russia and good reputation aids the sales. Finnish food is seen as a luxury item in R ussia. For example the Finnish Valio is unable to produce export items (like butter) fast enough to satisfy the demand. The delicious outlook in Russia has caused the foodstuff field to increase its investments. For example the Finnish Myllyn Paras Oy, a manufacturer of flour, flakes, grits, and pastas, is going to start building a new cereal production facility near Moscow. The factory comes with a price tag of EUR 33 million. Also Valio is planning to increase its production of Oltermanni cheese with a EUR 15 million

Photo: Port of Söråker, Delta Terminal Ltd.

More information about the ICT-system: Leif Olsson, WP5-leader, MIUN, MidSweden University leifl.olsson(at)miun.se More information about Delta Terminal Ltd: www.deltaterminal.se

investment. More than half of the produced Oltermanni goes to the Russian market. Interestingly: both companies operate also in Seinäjoki. NECL II plans to study food exports especially from Seinäjoki to Russia in more details. Also other food transports will be studied, eg. salmon from Norway etc. Food transports on the corridor is also one case study when testing the new ICT-system. (sources: http://www.hs.fi/english/article/Finnish+food+is+se en+as+a+luxury+item+in+Russia/1135270179505 and http:// www.hs.fi/english/article/Rapid+growth+experienced+in+food stuff+exports+to+Russia+/1135267044327)

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER18/21 March 2011

Previous NECL II -events

In November 2011 NECL II arranged seminars both in Stjördal, Norway and in Seinäjoki, Finland. The topics were east-west communications and combined transports. More information on midnordictc.net and presentations also on YouTube (www.youtube.com/playlist?list=PL947c55cae1fda4db)

Politicians agreed on importance of Meråker Line In the seminar in Stjördal national and regional politicians from all three countries in the Midnordics presented and discussed joint problems in east-west communications. National strategies are often prioritylists by nature and some important development targets are unfortunately often left out. The statement attached was published after the seminar to point out a couple of bottlenecks on the corridor.

Picture above: Politicians from Norway and Sweden agreed on Meråker Line. Pictures on the right: the railway track on Swedish side, Mittbanan, is electrified, but same track, Meråker, on the Norwegian side is not.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER19/21 March 2011

STATEMENT: Improving competitiveness demands better infrastructure The Midnordic Committee delivered the following statement to the national infrastructure authorities in the region: • The Mid Nordic Committee supports the initiative by South and North Tröndelag fylkeskommunes and Jämtland Regionförbundet to establish an association which aims to speed up the actions for electrifying the Meråker track and to quickly allocate investment funds for the project in national plans. The initiators aim to find funds for the project as advance investments in Norway and to implement the project during 2015. These are seen as necessary actions for improving railway transportation between Norway and Sweden. • The triangular rail track in Sweden’s Sundsvall, ”Bergsåkerstriangeln”, is very important to Mid Nordic transportation as well as to the functionality of Ostkustbanan/Ådalsbanan (East Coast Line/Ådalen Line) which runs through Sundsvall. This investment is also important from the viewpoint of social economics with present value ratio of +2.9 %. Therefore, the Mid Nordic Committee states that the triangular rail track should be regarded as more important in the investment plans than it is now. • The basic repairs on the Seinäjoki-Kaskinen railway is a necessary prerequisite for creating a continuous transport corridor in the Mid Nordic Region. Investing in the road between Multia and Myllymäki on Highway 18 is also important in order to secure functional crossconnections and for supporting the living conditions and growth of the region. Therefore, the Mid Nordic Committee supports the initiative by Kaskinen for absorbing the railway investments into the state’s budget next year and for starting road investments in Central Finland as soon as possible. The Mid Nordic Committee feels it is essential that the above-mentioned investments are implemented during the next few years so that the Mid Nordic Region can be assured of a consistent, functional infrastructure. The importance of this matter is highlighted by the forthcoming sulphur directive, which will change the transportation routes of the Baltic Region.

Further information: www.midnordictc.net and www.mittnorden.net

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER20/21 March 2011

Promoting the corridor at TransRussia 2012-exhibition TransRussia -exihibition is according to organisers: “a major marketplace for transport services, each year attracting leading professionals from Russia, the CIS and Baltics. At the event, the most important issues in the development of the Russian transport system are discussed, and new information systems are developed for interaction between different modes of transport, aimed at successfully addressing logistics issues in the global market for transportation and logistics services. Being focused primarily on cargo transportation services, the TransRussia exhibition demonstrates the full range of industry solutions - from transport and forwarding services to software and equipment for cargo handling.� (source: www.transrussia.ru) The Midnordic Green Transport Corridor/NECL II has a joint stand at the TransRussia 2012-fair with the Port of Kaskinen and the goal is to promote the corridor to Russian and Baltic operators, and to get important business contacts.

We shall also arrange our own miniseminar during the fair, welcome to hear and discuss about the potential and benefits of the east-west transport corridor. Miniseminar about Midnordic Green Transport Corridor: Time: Wednesday 25 April at 13-14 PM Place: Pavilion 8, Seminar Hall 1 Invitations to the exhibition will be sent to related actors. If you are interested in receiving an invitation from us, please contact us. Hoping to seeing you in Moscow at our stand (Pavilion 2, Hall 2, stand A213). Further information from: Communication Manager Virpi Heikkinen, virpi.heikkinen(at)keskisuomi.fi, tel. +358 40 595 0178.

Picture above: welcome to our stand at TransRussia 2012: Pavilion 2, Hall 2, stand A213.

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net


NEWSLETTER21/21 March 2011

NEW WP4-LEADER Henric Fuchs Henric Fuchs is the new WP4-leader in our project and coodinates the work within transports and logistics. Is County Transport Manager at the County Council of Västernorrland. He has previously worked with goods shipping, logistics and dangerous goods, for example in the transnational NPP1 public transportation project RTS2. henric.fuchs(at)lvn.se Tel. +46 (0) 690 76 40 20

CHECK OUT THE WEB: all NECL II -related news/articles are published on: http://www.midnordictc. net/informationmedia/mngtcinmedia

UPCOMING EVENTS transrussia 2012 - exhibition, april 24-27, moscow Logistics Transport Exhibition 2012, May 9 - 12, Helsinki, Finland Logistics & Transport 2012, MAY 22 - 25, Gothenburg, Sweden

MID-TERM CONFERENCE of NECL II -project 15-16 August Vaasa, Finland The mid-term conference is meant especially for all project partners and associated partners, but also for other interested. More information and program later on our website www.midnordictc.net.

North East Cargo Link II

- a Baltic Sea Region 2007-2013 -project • Ca. 2,7 M€ budget • Duration: 2010–2013 • 22 partners from Finland, Sweden and Norway. Leadpartner: County Administrative Board of Västernorrland. More information: www.midnordictc.net

DEVELOPING AND PROMOTING THE MIDNORDIC GREEN TRANSPORT CORRIDOR www.midnordictc.net

Newsletter nr 3 Midnordic Green Transport Corridor  

In this issue eg. Survey on bottlenecks and capacity gaps; New report on cargo flows and passenger statistics; NECL II supports the proposal...