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NEWSLETTER September 2012

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

Topics in this letter: - International needs should be part of national plans - Consequences of sulfur regulation ... and other related news

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NEWSLETTER2/17 September 2012

Norway, Sweden and Finland must invest in alternative and complementing international transport routes in order to face future... Output from Midnordic Green Transport Corrdor (NECL II) Mid-term conference 15-16 August 2012 Vaasa

The necessity to develop good east-west connections is about keeping domestic companies competitiveness on an increasingly global arena. This can’t be emphasized enough. Looking at cross border solutions between Finland and Russia, getting a stabile ferry line between Finland and Sweden together with electrification of the Meråkerline between Sweden and Norway is the most essential matters to solve in the short run. Business with Russia and China is a growing market potential for the Nordic companies. We all need to understand that we are facing a period where high amount of cooperation between the Nordic countries is essential, in order to be able to compete on a global market. International cooperation is a matter of domestic survival… The IMO sulphur regulation kicking in 2015 in the Baltic Sea area will without any doubt affect and change the transport situation.

patterns towards being environmental. It also means that we need to have efficient and reliable transport solutions where amount of loadingreloading, change of transport mode etc. are cut down to a minimum. In order to change transport patterns certain infrastructure needs has to be solved. Some of these needs are at such complexity that they can’t be left to the market to solve. The need of changing transport mode in general from trucks to ships and trains led to another issue we currently are facing. Namely that infrastructure planning often stays domestic. Decision makers tend to look at national needs rather than cross border matters. International needs end up as low-ranking matters in national transport plans. Read the whole memo and download the conference presentations: www.midnordictc.net/newsevents/newsarchive/

The conclusion is that we need to change transport

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


NEWSLETTER3/17 September 2012

In the footsteps of our forefathers for the victories of tomorrow… We are again standing face to face with extremely important and far-reaching national decisions in Norway, Sweden and Finland. In Sweden, for example, these decisions extend over infrastructure development up until 2050, but which will almost certainly have an impact beyond that. Such decisions will cover all infrastructure in which case we are suddenly talking not just about different means of transportation, but also about other methods of communication, energy supply, etc. Such decisions will not only affect individual countries, but also neighbouring countries. Such decisions are important from an environmental standpoint and for the competitive strength of companies on an increasingly global market; thereby they are important for all of us. Such decisions can provide us with the opportunity to maintain our standard and are essential to us being able to avoid the negative development trend that can be perceived in neighbouring countries. I started thinking about what the situation looked like from a historical perspective and how it all once started… how we thought back then and what instruments dictated our decisions. Some of the questions I asked were… - IS it really possible that we have learnt nothing from history…? - CAN it really be that we are still struggling with the same preconceived notions as before, but in a new form…? The first above-ground railway was built in 1798 between the mines and the Höganäs harbour in northwest Skåne. It was a railway with wooden rails and the

carriages were pulled by horses. The Swedish word for railway, “ j ä r n v ä g ”, translates literally to “iron way”, so if we assume that railways are made of iron and require engine power, then the first railways in Sweden date back to 1856. In some cases r a i l w a y s supplemented the channels that were built, in other cases they came to compete with the channels. It was in the second half of the 19th century that the railway expansion gained momentum in Sweden. The railway radically reduced travel times. A stagecoach trip from Stockholm to Gothenburg used to take a whole week. By train the route could soon be travelled in 14 hours – this time was gradually reduced as faster and faster locomotives became available. However, it was far from obvious that Sweden would invest in railways. Many were against and they did not lack arguments. The Swedish rolling landscape with all its hills, deep canyons, lakes and large forests was not suitable for steam locomotives. These were most of the arguments. Everyone thought that trips at such speeds would make people sick. Others feared that iron from the rails would be stolen. Interested to read Per-Åkes entire historical review ? Go to www.midnordictc.net/information and media/ blog of project manager 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


NEWSLETTER4/17 September 2012

The sulfur regulation on Baltic Sea - sce NECL II -project will during fall 2012 produce and publish a report which analyses the scenarios of the sulfur regulation to the Midnordic Green Transport Corridor. The aim is to study the impact of the sulphur directive in general with a focus on cargo flows, costs, fuel options and investments, and also effects on competitiveness for the major industries in the Midnordic area. Analysis (including SWOT and Scenarios 2020 and 2030) will be based on current knowledge from authorities, universities, shipping and transport sector, ports, industry and stakeholder organisations. The IMO regulation is a UN declaration and all EU -members have signed the agreement as well as Sweden and Finland, but even also Russia. In general the whole EU should follow the IMO regulation and all EU waters outside SECA should apply the 0.5 % level from 2020 (even if the global limit will be delayed to 2025). For passenger ships outside SECA the limit would be 0.1 % in 2020 (is now 1.5).

• 5-6 % increase of transports on rail and road (respectively) • 7-10 % decrease of shipping transports But the administration admits it is extremely difficult to predict future fuel prices. Options for following the new limits are for example the following: Marine Gas Oil (MGO) or low sulphur Marine Diesel (MDO), Liquid Natural Gas (LNG) and Biogas (LBG), Heavy fuel oil with exhaust gas cleaning (Scrubber), Methanol / DME, Bio-oil and Hydrogen. Also slow steaming is considered a way to reduce fuel consumtion and cost. So there are several options for following the new limits but time will tell which solutions the companies will choose. We can speculate that the consequences will be both maritime, logistics and industrial. Anticipated consequences will raise the prizes for fuel, transport costs etc. but at the moment it is difficult to predict how much.

For example the Swedish Maritime Administration 2009 predicts the consequences to mean eg. following:

So there is no back-door, the regulation will kick in and the new situation must be handled somehow. But for example the Swedish industry and the Shipping organisations still try to induce the government and/or EU to postpone the regulation.

• 50-55 % increase of fuel price

>>>>>>>>>

• 20-28 % increase of shipping transport cost

The light blue line is marine fuel with a 0,1-0,

The yellow line is bunker oil, the marine fuel u

Even though price varies over time the price b

and bunker oil is almost around always arou

Dark blue line is 0,5% sulphur content in mar

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


NEWSLETTER5/17 September 2012

enarios for Midnordic Cargo Transports The big question is: What will happen in the Midnordic region?

2020 or 2025 when the sulphur limit will be 0.5% globally.

For the industry as transport buyers in the Midnordic area?For the shipping and logistic operators?For the ports?For the environment?For industrial competitiveness? Are there also opportunities?

What can governments do?

NECL II -project arranged a hearing in June 2012 on the topic and following conclusions were made: - Finland as an island is extremely dependant on shipping and 96 % of Finlands exports/imports is done by sea which means 3000-5000 ships each month. For short sea shiping between FinlandSweden the regulation could mean also improved business opportunities (!), for ferries or short sea RoRo/RoPax -ships. - The Port of Trondheim is outside the SECA area AND may be an option in the long run as the port can handle some more cargo. BUT: Who may take up the business opportunity? Unfortunately the rail terminal in Trondheim has reached its limit and it takes time to decide on new rail terminal and possibly new port. - LNG is one of the most probable alternatives to HFO and Norway have much best practise of use of LNG but there will still be a huge need for investments in ports and new or rebuilt ships.

a) Transport subsidies to ports in e.g. Bothnian Sea and Gulf of Bothnia. b) Increased funding for research and development of alternative fuels, better purification methods and development of more efficient engines. c) Investment grants with same focus as in b) above. d) Reduced fairway charges (requires increased grant to Swedish Maritime Administration). e) Fully internalise the environmental effects for all modes of transport. f) Tax-free shoreside electrical supply to ships. g) International collaboration between the Baltic Sea countries to take up the question at EU level for appropriate action. More detailed analysis and information later, as the report will be published during fall 2012. Read also next page about the same issue.

- The paper and wood industries will face big problems as transportation costs will rise – there is still lots of uncertainty on by how much. There is a risk for closing down of industries or no expansion inestments.

Gustav Malmqvist who is the contract manager in the survey points out also following:

- For SCA Transforest: bigger and slower ships could be an option, as this transport and logistics company does not see shipping from Trondheim as an option right now (for logistical reasons).

innovation and infrastructure investments. At the moment we have more questions than answers, but the upcoming report will hopefully atleast rise up many important topics to public and cross border discussions. ”

- Optimization of routes and increased return cargo is necessary. - The change of the cost-benefit ratio for railway transports from Mid-Norden to Asia, especially after

,2% sulphur content.

used world wide today.

between low sulphur fuel

“The Sulphur regulation must also be seen as a driver for

More information about the upcoming study: Gustav Malmqvist, MIDEK Ltd contract manager gustav(at)midek.se Tel. +46-70-6630442

und 250-300 USD/tonne.

rine fuel.

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


NEWSLETTER6/17 September 2012

EU parliament approved the sulfur directive The controversial directive was approved by the European Parliament by clear votes. The European Parliament voted to reduce sulfur in fuel used by all vessels in EU waters other than the Baltic Sea, the North Sea and the English Channel to 0.5 percent in 2020 from as much as 3.5 percent currently. The assembly also incorporated an IMO accord that will lower sulfur in fuel used by all ships in the Baltic Sea, the North Sea and the English Channel to 0.1 percent in 2015 from 1 percent now. Stricter limits on the sulphur content of shipping fuels are set to improve air quality along European coastlines and reduce the estimated 50,000 premature deaths caused each year by air pollution from ships. Finnish Forest industry: More shutdowns in Finland if sulphur directive remains unchanged Especially the Finnish and Swedish industry has criticised the directive for the costs it will impose on exporters, several billion euros extra and will weaken the companies´ competitiveness. In Sweden there has been an investigation which concludes that sulfur rules will also push up the price of diesel significantly. For example the Finnish UPM Biofore company has already threatened to move production to Central

Europe. The Finnish government has promised to investigate ways to support exporters hit by increased costs while complying with EU competition rules. In its latest budget proposal, the government has allocated 30 million euros to help shipowners fit their vessels with scrubbers. Each unit costs between 2-5 million euros. Earlier the Finnish Minister of Transport Merja Kyllönen has stated that the adaptation to sulphur regulations cannot be funded from basic infrastructure maintenance. The Swedish Forest Industries demands now that the government works for Sweden to get exemptions from the new EU sulfur directive. Also positive impacts In general the industry welcomes tighter sulfur regulations, but it can not lower the levels more than what there is fuel available or what the technology allows. For example the Finnish industry can also gain from the legislation. The Wärtsilä engineering firm is one of the leading manufacturers of exhaust gas cleaning system to combat sulphur emissions, and the company expects an uptick in orders ahead of the new directive coming into force. Wärtsiläs solutions were presented also at the mid-term conference of NECL II -project in August.

(Several sources: http://www.europarl.europa.eu/news/en/pressroom/ content/20120907IPR50818/html/Cleaner-shipping-fuelsto-save-lives and http://yle.fi/uutiset/forest_industry_more_ shutdowns_in_finland_if_sulphur_directive_remains_ unchanged/6287841 and http://www.hs.fi/english/article/EU+Parliament+pass es+new+sulphur+directive+-+despite+protests+by+Finla nd/1329104779154 Cargo ships will have to invest for example in scrubbers as the new EU directive on sulphur emissions is approved.

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


NEWSLETTER7/17 September 2012

Promoting MNGTC at TransRussia 2012 In April 2012 the Midnordic Green transport Corridor was promoted at TransRussia 2012 -exhibition in Moscow and the interest towards the alternative east-west transport corridor and it´s services was positive. The Midnordic Green Transport Corridor/NECL II had a joint stand at the TransRussia 2012-fair with the Port of Kaskinen and the goal was to promote the corridor to Russian and Baltic operators, and to get important business contacts far east. The first impression was that an east-west transport corridor in the Nordics awake interest in lot of operators and possible future clients. Alternative routes and new initiatives are explored and welcomed. The MNGTC -stand was visited by a lot of people who were interested to know more about the east-west corridor and the services provided along the corridor. The Port of Kaskinen and its operators (eg. Baltic Bulk) and also the new planned logistics center in Seinäjoki were presented at the stand for several new contacts. Especially the green/ecological dimension and goals of future transports were discussed with several stand visitors. For example a large amount of people hadn´t heard about the upcoming sulfur regulation on the Baltic Sea/SECA-area which will affect the transport system in the future. NECL II and the partners will evaluate the outcome of the exhibition and see which contacts develop into further actions. The exhibition is an excellent place to make actual business and for year 2013 the plan is to get more companies to the joint stand.

TransRussia -exhibition is a major marketplace for transport services, each year attracting leading professionals from Russia, the CIS and Baltics. More information: www.transrussia.ru

Photos: Russian material and Russian speaking personnell is essential at the exhibition. Per-Åke Hultsted, Timo Onnela and Roman Kurzhunov presenting the corridor to stand visitor. Photos by Virpi Heikkinen.

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


NEWSLETTER8/17 September 2012

Positive news from Karelia, the Finnish and One of the main challenges for the Midnordic Green Transport Corridor is opening up more INTERNATIONAL BORDER CROSSING POINTS for road and railroad transports between Finland and Russia. From Russian side positive vibes and talks about need of investments give hope for actually a possibility to open the Parikkala (Finland)-Syväoro (Russia) crossing point as an international border crossing point by the year of 2014.

“Syväoro check point will expand borders of cooperation with Finland” The new Head of Karelia Mr. Alexander Khudilainen, made a visit to Finland in August and in Parikkala the issue of launching the passenger service through Syväoro was discussed. At the moment simplified border checkpoint is used for exporting of timber only. To amend the situation the checkpoint should be granted a new status. As chairman of Parikkala municipality council Ari Berg mentioned, back in 1995 when the check point was under construction there was an idea to organize passenger traffic there. Moreover, Finnish border guards do not forbid it now, the rigid constraint has been initiated by the Russian party. Passenger transportation through Syväoro since long time appears in Finnish long-term plans of development of the municipality and the region. In the line of Eurocommission funds for reconstruction of access roads to Syväoro, both

from Finnish, and from Russian parties are allocated. And Eurocommission makes positive asessment of these projects and is ready to increase assignments if the issues of changing the status of the check point gets off the ground. As chief of the boundary check point Ilkka Tiainen declared, the existing infrastructure already allows to let through up to 10,000 people a year. Alexander Khudilainen has confirmed the interest of Karelia in opening of a new international check point in territory of the republic. - Last year the Consulate of Finland in St.-Petersburg has issued 1 million 200 thousand visas. 90 percent of these people drive to Finland through check points in the Leningrad region which feel serious overload. Lines on both sides of the border reach several kilometers. Syväoro check point could incur an appreciable part of the passenger traffic, without mentioning intensification of business and other contacts between Finland and Karelia, Head of the republic has pointed out. Alexander Khudilainen has also reminded that on the plans of the federal center in 2016 it is expected to complete construction of the new road from St.Petersburg to Petrozavodsk through Sortavala. It is a modern high-speed highway 70 kilometers shorter than the former way. Moreover, the presidential concept of improvement of the road infrastructure of Russia stipulates development of automobile communication from regions of the Northwest to the Southeast: to Perm, to the Urals, to Siberia. Hence, the volume of passenger traffic and freight traffic which can go through Syväoro check point in the long term will only grow. Alexander Khudilainen emphasized that to change the status of Syväoro a political decision at the state level is required. As Head of Karelia has informed, it may become one of the issues for discussion at the meetings of Head of Karelia with President of Russia and President of Finland scheduled for the next ew months. Besides, Head of Karelia considers the necessity to convince border agencies of both countries to change the status of Syväoro one of the joint tasks for Karelia and Southern Finland. - To convince Russian authorities to change the status of Syväoro to the international check point we need to prove the prospects of this step. If we work very well, then, I think, in 2014 Syväoro may already start to function in its new capacity. Picture and source The Republic of Karelia’s official Internet Portal: http://gov.karelia.ru/News/2012/08/0813_07_e. html

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


NEWSLETTER9/17 September 2012

Russian border

Pictures from: Required measures to achieve good border traffic flow in Southeast Finland -plan (2011)

Today’s problems There are capacity problems in the international border crossing points: the movement rate of goods and people is growing strongly. These capacity problems effect the Russians decisions regarding their travelling destination. In addition truck and railroad transports from Russia to Finland are mainly driven through the busy and congested South Finland. Russian tourists travelling to Central or Northern Finland often cross the border in the checkpoints that are located in the south. The relatively good and constantly developed eastwest transport infrastructure is not utilised effectively in Finland. Unfortunately the road infrastructure in Russia is still insufficient, but some future improvements are ahead. Background: • A record number of visas, over 1,2 million, was granted to Russians in 2011 • In 2011, 10 million passengers and over 4 million cars crossed the border. Over 70% of these are Russians • Growth rate of border crossings is 20-40% per year • Major part of border crossings is made in South-Eastern Finland (Vaalimaa, Vainikkala, Nuijamaa, Imatra and Parikkala) • Russians spend about € 1 billion per year in Finland. Approximately 50% of this money is spent in South-Eastern Finland. • In Finland the net income of transit transport is approx. €300 million.

Parikkala – Syväoro border crossing point • Traditional connection from Parikkala to Ladoga, mainly truck traffic • Located close to Finnish highways (5 km to Highway 6, 8 km to Highway 14) and the main railway network, in Russia: federal highway A-121 St- Petersburg-Sortavala-Petrozavodsk (ready in 2015), Elisenvaara railway station approx. 15 km • Even if the border crossing numbers were to grow significantly, there is no need for large investments in the border crossing point in Parikkala, land use plans ready • Complete renovation of the road Syväoro – Raivio 10 km and Raivio – Ihala 14 km are funded by the EU ENPI-programme in 2012, completed in 2014 • The goal is to open the border crossing point for restricted passenger transport as soon as possible • Internationalization of the Parikkala-Syväoro border crossing point in 2015. NECL II -project is planning a visit to the Republic of Karjala in November 2012 to discuss the border crossing issues with Head of Karelia, Mr. Alexander Khudilainen. More information: Aune Ritola-Grahn, Business Development Officer, municipality of Parikkala Tel. +358 44 781 1266, aune.ritola(at)parikkala.fi

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


NEWSLETTER10/17 September 2012

Transport Minister Merja Kyllönen visited Port of Kaskinen No promises for additional funds to repair the Seinäjoki-Kaskinen railway

The track is an esstential link between the port of Kaskinen and the logistic centrum of Seinäjoki where plans to expand and develop intermodal transports are far. The track serves especially national forest industry, for example Logistics Metsä Wood, but it has been claimed that in Finland the EUgoal of increasing the use of railway transports is not being fulfilled nor enough emphasized. Minister underlined extensive cooperation and concrete figures and development ideas Minister Kyllönen could not promise any additional funding to renovate the track, but the track will be maintained in traffic as for now. The Minister also recommended extensive cooperation between all interested parties across region borders, but also to find and present concrete cargo figures and actions on behalf of the track.

Photo: Minister Merja Kyllönen in Kaskinen, by Virpi Heikkinen.

Finland´s Minister of Transport Merja Kyllönen was invited to Kaskinen as the local actors wanted to appeal for the importance of the Seinäjoki-Kaskinen railway and its´ renovation needs. 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. Local actors have researched also other financial resources for the track and started an additional study about options to repair or maintain the track. Local companies also stated that the uncertainty around the topic is unbearable and they would like to hear definite decisions in the case.

NECL II will continue following the issue. One development idea is also to start up pilot projects around BioRail and BioPort -consepts. More information: Marlene Svens, City director of Kaskinen marlene.svens(at)kaskinen.fi, tel. +358 400 868 780. Background: The old Suupohja track between Seinäjoki and Kaskinen is in poor condition and demands plans, but a recent project evaluation (made by the Finnish Transport Agency) did not satisfy local actors as the cost estimation of renovating the track was between 90 -124 M€. Locals believe that with cheaper and adjusted actions an enhanced maintenance could be possible. According to Finnish Transport Agency an enhanced maintenance of the track would cost around 1.4 M € per year. The volumes on track and Kaskinen port shipping have decreased in recent years but the track is still important to the user industries. If the line can not be improved, track traffic stops by about ten years from now.

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


NEWSLETTER11/17 September 2012

New report: Port Costs and Liner Ship Survey between Port of Kaskinen and Swedish Ports Main focus in the study has been to find and produce supporting data of port costs for the decision making of investors into a new cargo liner service between Port of Kaskinen in Finland and Swedish ports in Västernorrland. Analysis of different costs related to different ports and its infrastructure are examined in the study. Identification, description and analysis of available ferry ship alternatives have also been noticed. The study examines the route options for liner traffic from Port of Kaskinen, Finland to four different ports in Sweden. Geographical area in this study is located around the Gulf of Bothnia. In Finland this (WP 4.2.) study is focused on Port of Kaskinen and in Sweden focus area is located between Härnösand and Norrsundet. Examined ship types are Roro and RoPax vessels, because in earlier WP 4.1. -report it was found out that most of the ferry cargo traffic between Finland and Sweden is transported by trucks with drivers or semi-trailers. The chosen ports for Roro-liner traffic must have a suitable Roro-ramp and other conditions for the liner ship operator.

In conclusions most suitable ships and also ports in Sweden are being compared and estimated for possible new future route. Read in more details in the report. In order to get more cargoes and to serve best the Midnordic Green Transport Corridor between Trondheim-Åre/ Östersund-Sundsvall/Härnosand it would be recommended to implement a schedule, which would serve from Kaskinen to Sundsvall and also every second voyage to Norrsundet. Both Norrsundet and Härnosand are quite cost competitive for liner traffic due to private status, same ownership and due other reasons not specified by port owners. The next phase is to study and calculate a “Business Plan for Kaskinen-Sweden liner connection”. The report was made by Logiwin Ltd, Finland (July 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.

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


NEWSLETTER12/17 September 2012

Developing rail freights on the corridor in Finland - is privatization an answer also for the track between Seinäjoki-Kaskinen? One goal of NECL II -project is to increase the share of railway and water traffic by increasing their competitiveness. Therefore project partners in Finland are exploring the alternative of private companies operating on certain rail tracks, for example the Seinäjoki-Kaskinen track, as the current circumstances are not fulfilling the needs of local industry (read page 10). The domestic rail freight transport market has been open to competition from 2007 in Finland and in the most of Europe. However, transport markets are changing slowly. Despite efforts to encourage competition, Finland remained long as one of the few EU countries where the goods transport network was operated by a single railway company, the state-owned monopoly VR Group. However, the countdown finally started in 2011 when TraFi issued the first safety certificates to private companies Proxion Train Ltd. and Ratarahti Oy. VR Cargo will continue to be a significant player in rail transport and has also welcomed new operators and the Finnish Transport Agency will try to ensure that the use of the railway network is fair and efficient when the new players start their operations. Proxion Train was the first company to enter into a contract for carriage of goods on the Finnish railways. It has concluded a contract with Vapo Timber to carry lumber from Vapo Timber mills from September 2013. In May 2012 the Ministry of Transport and Communications issued a licence to Ratarahti, making it the first new official operator in Finland since the sector was opened to competition. Initially, Ratarahti will concentrate on timber transportation between a limited number of locations starting in Autumn 2012. Main obstacles and new opportunities According to the findings of a report commissioned by the Finnish Transport Safety Agency, the greatest obstacles to open competition in the rail sector are the high start-up costs. The price of a single locomotive is EUR 2.0 to 4.0 million, while one goods wagon costs EUR 100,000 to 150,000. According to Proxion, the required

investments will in any case be in the tens of millions of euros. And unfortunately it has been problematic to find rolling stock, ie. suitable locomotives and wagons for Finnish railtracks. For many years, heavy-goods transport by rail declined Photo:changed. Norden.org as the structure of Finland’s core industries However, now the Finnish mining industry, which has largely been taken over by foreign companies, has been growing at record speed and now offers inviting possibilities to new private railway companies. Also Proxion Train attempts to seek clients from among the forest, steel, and mining industries, which all have large deliveries on a regular basis. The company is currently arranging the financing for the operations. New operators for east-west freight?Work meeting in Seinäjoki possibly in October The aim of the first meeting is to clearify the tasks and responsibilities of various actors in the Finnish rail freight transport markets. The long-term goal is to speed up the amount of international rail freight companies on Finnish rail network, in order to increase rail freights in east-west directions and to reduce the pressure on the mainline network. Participants and speakers will be invited to the first meeting, if you are interested in the topic, please contact us. More information: Seppo Rinta-Hoiska, Consulting Officer of Regional Council of South Ostrobothnia, seppo.rinta-hoiska(at)epliitto.fi, tel. +358 40 524 4373 Sources above: http://www.hs.fi/english/article/Proxion+Train+to+challen ge+VR+Cargo+in+rail+goods+traffic/1135257302706 and http://www.hs.fi/english/article/Competition+co ming+at+snail%E2%80%99s+pace+to+Finnish+railwa ys/1135253387912 and http://www.internationallawoffice.com/newsletters/ Detail.aspx?g=b9fb7dae-ce26-4ea0-97c4-b80c9f1f6167 and Proxion Train Ltd.

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


NEWSLETTER13/17 September 2012

Intermodality under fast development along the corridor New combiterminals and logistic centers to Ånge and Östersund in Sweden

A study on Intermodal terminal in Östersund area - technical, economic and market conditions for establishment Construction of an intermodal terminal in Östersund area, Sweden, is a priority for the municipality and the region. The terminal must be able to offer the market an opportunity for transporting goods on alternative road and rail, to both efficiency and environmentally sound transportation. The establishment of an intermodal terminal is often a major financial investment. It is also difficult to predict the future market potential. Therefore a public commitment both financially and practically is necessary. The public interest in encouraging combined transport is large, especially given the potential of opening for business development in general, but also because transports can be more environmentally friendly,when goods go on rail instead of road. The investigations for the Lugnvik option have been part of the EU project NECL II. Östersund has been considered a strategic site for an intermodal terminal in the context of NECL II. The report is available on www.midnordictc.net.

The Midnordic Logistic Center in Ånge - A ’state-of-the Art’ Logistic Center for exchange of Cargo between Rail and Truck in Ånge Ånge is one of the largest shunting yards in Sweden for Rail Cargo, almost all Rail Cargo volumes to and from Northern Sweden/Finland/Norway and to and from Southern Sweden and continental Europe are shunted in or passing Ånge. The centre is already operating, but more will happen. The Swedish Transport Administration has recognized a need for an upgrading of the railway yard in Ånge and there is a funding from their part of approximately 75 million SEK until year 2013. The favourable railway location, the railway yard, the wagon maintenance facility among other things made Ånge a hub in the railway logistic system for transporting paper from Swedish northern mills to the continent in 2010. As the market from this point showed great interest in the possibility of using a terminal facility for loading and unloading goods in Ånge,

Photo: Norden.org

the development plans grew stronger. The Municipality of Ånge identified the need for a terminal for shifting transport modes with the purpose to strengthen local logistic sector and attract new establishments. The long term goal is set to create more job opportunities in Ånge The market for forest products is an important base for the terminal from the start. The long term goal is to, step by step, develop more complex services. The Municipality vision is a combiterminal in Ånge. This requires hard work, qualified partners and additional funding. The report “Midsweden combiterminal in Ånge environmental study and an overall description of the establishing process” is also available on www.midnordict. net.

Seinäjoki aims to become a major logistics centre in Finland

In Seinäjoki the plans are to expand the current logistics area and add services to it during the next two years. The area will expand from the current 300 hectares to over 600 hectares and will be a significant logistics centre in Finland. Nordic Logistic City is a modern and green intermodal centre. NLC-Seinäjoki will demonstrate guidelines for green transport and set an example to all other centres built in Finland.

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


NEWSLETTER14/17 September 2012

New reports upcoming: E14 and accessibility of ports in Västernorrland Photo: Godsterminal Trondheim, by Virpi Heikkinen.

These two reports are follow-ups of earlier report called “All pieces in place” where bottlenecks and potential of the whole corridor were studied.

Southern Ostrobothnia is the centre of the Finnish food industry and NLC-Seinäjoki will offer special services that guarantee that the food industry in the region will remain competitive. The services for the technology industries will be improved by all means necessary. NLC-Seinäjoki will be a logistics centre that is available to everyone, offering services to transport companies and all manufacturing companies in need of shipping. Companies already operating in the area are: Kiitolinja, Schenker Cargo Ltd, Kaukokiito, HahkaWay, Järvimäki, VRTranspoint, Itella, JH-Kuljetus, Pöytälaakso, Lumikko, Atria, Valio, Ruukki Group among others. More information about NLC Seinäjoki development work is available on www.midnordictc.net

Several meetings with stakeholders have been arranged on the topcis and at the moment it is still possible to give comments Photo: Norden.org to the preliminary reports. Report of E14 has a focus on the accessibility of goods transports. E 14, together with the railways on the route, is part of the Mid Nordic transport corridor from Trondheim in Norway via Östersund / Sundsvall in Sweden and into Finland. E 14 is even a part of the TEN-T - road network (Trans European Network) in Europe. It has an important function for industrial transport, tourism and commuting in areas around Östersund and Sundsvall. It also collects transport hubs with the E45 and E4 and major highways. E 14 between Sundsvall and Trondheim in Norway is built to become a Green Highway, a green transport axis through a renewable energy belt. Along the nearly 50 mil route it should be able to refuel vehicles with electricity, biogas, ethanol and rapeseed diesel. (More information: www.greenhighway. se ). Along the E 14 there are routes that have different types of malfunctions that affect the availability, safety and environment for different road user groups and population along the route. Several of these have been known for many years and plans and studies have been developed to solve the problems. Some routes have even been rebuilt and improved. The purpose of the study is to propose effective measures on the route which are needed from a national and international perspective both in the short and long term, with a focus on freight transport and its availability. The report suggests various combinations of measures to reduce the congestion on the route from the border to Norway and the entrance to Sundsvall and the link to the ports. The measure combinations have been prioritized from a lane perspective, focusing on freight, but not at the expense of other transport policy goals. Many studies and plans already exist for route and parts have already been addressed, but several plans and investigations are temporarily closed or awaiting funding for the process to continue.

More information:

www.nlcseinajoki.fi and Project Manager Ari Lehtinen, ari.lehtinen(at)seinajoki.fi, tel. +358 40 7748 333

Connections to ports Concurrently with this E14 -report also another report “Accessibility of ports in Sundsvall, Timrå and Sundsvall” (act. 3.3.) has been carried out and these reports should be read together to get a total picture of different parts and needed actions for the route.

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


NEWSLETTER15/17 September 2012

The ICT -system of NECL II will be presented at IEEM 2012 in December in Hong Kong The

IEEE

International

Conference

on

Industrial

Engineering and Engineering Management (IEEM) is the Photo: Norden.org

leading international forum to disseminate, to all branches of industries, information on the most recent and relevant research, theories and practices in IEEM. The IEEE IEEM 2012 will be held in Hong Kong during 10-13 December. By improving relations between the railways and ports in Sundsvall, Timrå and Härnösand the Midnordic Corridor will become more efficient with a higher degree of intermodality. Sea transport between Sweden and Finland in the corridor will get greater ability to development. Goods transports on the road, to and from these ports will be reduced and replaced by the rail freight.

The conference will link researchers and practitioners

The report presents proposals for measures to improve relations and make the ports more accessible.

Mr. Leif Olsson, the leader of WP5/ICT -work, from

Geographically the harbors have similar conditions with rail connection to Ådalsbanan and proximity to E4. The ports have though different characters and focus and there is a big difference in freight volumes. Today’s infrastructure around the ports can handle existing flows. It is with increased volumes that the ports will make themselves more known and investments must take place to ensure the availability, performance and competitiveness. For Sundsvalls part (Tunadalsport) there are far advanced plans for a sharp rise in volumes even without Midnordic Green Transport Corridor by building an intermodal terminal and container port and SCA expands its production in sawmills of Ortviken and Tunadal. The report authors wishes to collect valuable comments in order to make the reports as useful and comprehensive as possible. Give your comments by 3rd of October to lena.jernberg(at) vectura.se. The preliminary reports are at the moment only in Swedish, but will be translated into English as they are finalized. The reports will be published at www.midnordictc.net.

from different branches of industrial engineering and engineering management from around the world. Built on the experience of the earlier conferences, IEEM will be a conference of very high standard. Mid Sweden University has submitted papers to the conference and following topics will be presented: - Olsson.L and Larsson.A. 2012. Matching of Intermodal Freight Transports using optimization in a decision support system. (Accepted for the supply management session at the IEEM 2012). - Kalinina.M, Larsson.A, Olsson.L. 2012. Generating and Ordering of Transport Alternatives in Inter-Modal Logistics in the Presence of Cost, Time, and Emission Conflicts. (Accepted for the decision theory session at the IEEM 2012). More information: www.ieem.org

More information about the ICT-system: Leif Olsson, WP5-leader, MIUN, MidSweden University

More information about the reports:

leif.olsson(at)miun.se, tel. +46 70 260 0327.

Helena Olsson, contract manager Vectura helena.olsson(at)vectura.se, tel. +46 10-484 41 17.

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


NEWSLETTER16/17 September 2012

NECL II comments Swedish national NDPTL proposal Regarding the Swedish national NDPTL proposal The Midnordic Green Transport Corridor (NECL II project), has want with it´s memorandum to ensure that they for us regionally, nationally and internationally important infrastructure needs are met in the ongoing development process. NECL II wants to ensure that following are included in the final NDPTL proposal… - The region’s seaports of Swedish national importance: Gävle, Sundsvall and Umeå. - The railway between Trondheim and Sundsvall via Östersund and Ånge. - The E14, European Road, between Trondheim and Sundsvall. - The region’s airports of Swedish national importance: Åre/Östersund and Härnösand/Sundsvall. - The seaport and airport (Værnes) in Trondheim. - Roads and railways in Finland are linked to the main route in NDPTL from Finnish seaports and airports included in TEN-T (Comprehensive network and core network). - The important transport artery for Sweden’s inland areas, the E45, European road, through Sweden. In order to achieve a general logic (overall level) in the work that is carried on between different EU programmes, at different levels, within different organisations, within different regions and not least in different projects, it is important that the transport network and infrastructure needs that exist within the TEN-T framework are included in the NDPTL proposal. This does NOT mean, however, that no additions can be made to the list of infrastructure needs in the NDPTL proposal as we see it. Regardless whether it is TEN-T or NDPTL that is concerned it is of vital importance that a strategy evolves not only functioning in Sweden but also for Sweden and the international community. From where we are standing the international perspective is crucial in this respect in all national infrastructure improvements.

Put in simple terms, countries must discuss together what the expectations are and what needs to be done in each country to achieve an overall functional transportation along the entire route regardless route. Another important aspect is to really have this, cross-border, multi-modal transportation solution as the general carrying idea. This involves defining different hubs that are important (e.g. ports, airports, nodes, roads, and railways) in order to actually be able to realise the overarching idea that is being pursued in general throughout the European Union. This means that when the different pictures of infrastructure needs (e.g. TEN-T and NDPTL) are put together, the pictures must complement each other and not counteract each other in any way if credibility and overall logic in the proposed solutions are to be achieved.

Read the whole memorandum on www.midnordictc. net/information and media/statements Background There is an ongoing work within the The Northern Dimension Partnership on Transport and Logistics (NDPTL) concerning the development of infrastructure and logistics with the aim of simplifying transportation of all kinds between different countries. The work is being done within the framework of the Northern Dimension partnership. In the same way as the TEN-T network is established on an overall EU level, a transport network is being established within the framework of the NDPTL comprising road, rail, air and water transports. More information: http://www.nib.int/about_nib/cooperation/ndptl and http://www.nib.int/about_nib/cooperation/ndptl/northern_ dimension

Taking this argument one step further, it is extremely important that the needs and expectations that exist, as regards cross-border transportation, are expressed at the national level in different countries. Then it suddenly becomes a matter of not only solving transportation needs in every country but also together finding solutions that in total create functional, multi-modal, international transport corridors.

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


NEWSLETTER17/17 September 2012

New film animation CHECK OUT THE WEB: www.midnordictc.net/animation

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 4 - Midnordic Green transport Corridor  

In this issue there are for example following topics: - International needs should be part of national plans - Sulfur directive approved –...

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