Aboard 1/2017 - Port of Turku Magazine by Port of Turku

EFFICIENT LOGISTICS HELP LOJER KEEP MANUFACTURING IN FINLAND

A visit to the port of Turku changed the screenplay A major incident exercise was led from Aboa Mare Column: Jaakko Nirhamo Baltic Line renewed its stock of vessels Events and News Warehouse supervisor as industry professional

1/2017

PORT OF TURKU MAGAZINE

Reliability of delivery is THE PRIDE OF WÄRTSILÄ Speed and good logistics won – PUKKILA WAREHOUSING TO TURKU

Speed of the transport chain is

PART OF EXPORT COMPETITIVENESS

GROWING WITH TILES 4

1/2017

Turku Free Zone Company and Pukkila as partners in logistics MEXICAN MINDSCAPE WAS FILMED IN TURKU 6 High number of vessels and varying ice conditions require exercising

Tall Ships Races Turku promises eastern exotica

A new vessel for Viking Line for the Turku–Stockholm route

Cooperation between Schenker and the Port continues in the Ovako area 9 THE FASTEST SEA ROUTE FOR EXPORTS STARTS IN TURKU 10 Column: Jaakko Nirhamo 14 Two new vessels for Baltic Line 15 Successful hospital equipment supplier has confidence in logistics

Engines supplied globally

Current news 20 INDUSTRY PROFESSIONAL The seasons affect tyre warehouses 22

ABOARD 1/2017 – PORT OF TURKU MAGAZINE Publisher: Port of Turku Ltd • Address: Juhana Herttuan puistokatu 21, 20100 Turku, Finland • www.portofturku.fi Editor-in-chief: Managing Director Christian Ramberg • christian.ramberg@portofturku.fi Sub-editor: Marjo Ekman • marjo.ekman@portofturku.fi Layout: Piia Leino Cover Photo: Markku Koivumäki Printing: Finepress Oy, edition: 1100 kpl Change of address: markkinointi.satama@portofturku.fi

4041 0678 Painotuote

ISSN 2323-251X (Printed edition) 2323-2528 (web edition)

LEADER

CLEARLY BRIGHTENING ECONOMIC OUTLOOK Finland’s economic outlook has turned more positive after a long period of recession. Last year, the growth rate of economy was 1.7 per cent and is expected to increase to 1.8 per cent this and 2.0 per cent next year. Exports are expected to grow by 3.0 per cent in 2017 and by as much as 3.5 per cent in 2018, thanks to the livelier global economy. The development is even stronger in the vicinity of the Port of Turku. The order portfolios of the shipyard industry in Turku are full, which has also resulted in major investments within the maritime cluster. Meyer Turku published several investments in the shipyard operations and the cabin factory last year. At Valmet Automotive’s plant in Uusikaupunki the production volumes are at an all-time high due to contract manufacturing for Mercedes-Benz. The Port’s transport volumes are also affected by the strong, export-driven growth of Sandvik’s plant in Turku. Furthermore, the Russian economy is recovering, and the rouble has strengthened, which may result in increasing transit traffic through the Port of Turku.

"The revival of Finland’s exports has led to an increase in demanding project shipments in the port of Turku."

Finland celebrates the centenary of its independence this year. The Port of Turku has long traditions as our country’s link to trading partners located in Scandinavia and Continental Europe. Our strong position as the route for Finland’s foreign trade is maintained by the favourable location at the heart of the key traffic routes of the Baltic Sea and excellent connections to Finland’s other growth centres. Our possibilities for serving both cargo transports and passenger traffic are currently even better than before. The Port’s liner traffic to Germany has increased as a result of added departures and capacity. The Port’s cranes have been modernised and the vessel services have been enhanced. The stock of vessels in our liner traffic continues to be renewed on routes to both Scandinavia and Central Europe. We will tell more about these and other services of our port at the Transport Logistic fair in Munich from 9–12 May 2017. You’re welcome to meet our representatives and partners! Christian Ramberg Managing Director

Aboard 1/2017

Turku Free Zone Company is rapidly growing to become a comprehensive logistics service provider. The new contract with ceramic tile manufacturer Pukkila is a big step for the company.

TEXT KALLE KIRSTILÄ PHOTOS ROBERT SEGER

The new agreement means that Turku Free Zone Company will handle around one million square metres of Pukkila tiles per year.

GROWING WITH TILES Founded in 1874, Pukkila made a decision two years ago to transfer its production from Turku to Portugal. When the old premises in Pitkämäki district in Turku had become unsuitable and the sales office had already moved to new premises, reorganisation of logistics and warehousing became topical. “When the production was transferred, we turned from a production company to a sales company and wanted to focus strictly on our core expertise, so we decided on outsourcing the services”, says Johan Westerlund, Managing Director of Pukkila

TURKU WON BY SPEED

According to Henrik Lundström, Administration Manager of Pukkila,

concentrating logistics and warehousing to Turku and the Port of Turku was by no means a done deal. “We also examined and calculated the option to relocate in Helsinki thoroughly, because the Helsinki metropolitan area is our biggest market in Finland.” According to Mr Lundström, the decision on choosing Turku was affected by Turku Free Zone Company, which turned out to be a partner with a similar mindset and willing to invest, as well as the natural advantages of Turku and its port. “The turnaround times and flexibility of the Port of Turku are definitely a major advantage. Furthermore, good connections to Tampere and Oulu were important to us. When you think about

the traffic volumes and driving times on Ring III in Helsinki compared to the exit roads in Turku, there’s significant difference.” “We also believe that in the future we can import all our products via Turku, when new container lines are opened, and further savings in transport costs can be achieved.”

TWO NEW WAREHOUSE HALLS

Stefan Lindström, Managing Director of Turku Free Zone Company, says that as a result of the agreement, Pukkila will become their most significant single customer. The agreement means a considerable increase in the company’s turnover. The investment is a big one: there is 7,000 square metres of new warehouse

space under construction and five new employees have been hired. The first unheated warehouse hall with a floor area of 3,500 square metres was introduced already in January. Another, similar-sized hall with environmentally sound geothermal heating is due for completion next to it in late summer.

The Pukkila tiles are nowadays manufactured mostly in Portugal. Other production locations include e.g. Turkey and Italy. The current trend is big tiles. In the picture a large floor tile held by Henrik Lundström and Johan Westerlund from Pukkila.

In addition to a warehouse, Turku Free Zone Company will build for Pukkila laboratory facilities for quality monitoring and a display space for product samples. In the future, Turku Free Zone Company will handle the logistics and warehousing of Pukkila’s products from beginning to end, from ships to shops – including reception, unloading, shelving, storage, packaging, deliveries and returns. In total, Turku Free Zone Company will handle some 600–700 containers of Pukkila’s products per year from now on.

The first warehouse hall with a floor area of 3,500 square metres was completed at the beginning of the year. A similarsized hall with geothermal heating will be erected next to it by the autumn.

The shelf storage and collection of general cargo with tailored additional services is a new kind of work for Turku Free Zone Company.

The people at the table agree that the economic boom in the Turku region will bring new scheduled ship routes to Turku in the future.

“We have provided tailored services for customers before, but then we had a partner while we now produce all services by ourselves”, says Stefan Lindström, Managing Director of Turku Free Zone Company.

Administration Manager Henrik Lundström (Pukkila) Managing Director Johan Westerlund (Pukkila) Managing director Stefan Lindström (Turku Free Zone Company)

DIVERSITY AS A GOAL Mr Lindström is confident regarding the future. At least from the point of view of Turku Free Zone Company the hardest years in terms of economy are behind. “Of course companies come and go. When one leaves, another one takes its place. That’s how it always goes. The Turku economic region is, however, booming very strongly.” According to Mr Lindström, they have been thinking in Turku Free Zone Company about the new kind of service resulting from the Pukkila agreement for a long time. He says that decreasing the dependence on trade cycles through diverse activities is important. According to Mr Lindström, the new investments are a new beginning. “In the future we will be better able to develop similar services, outsourcing of overall warehousing services for those who need it.

TURKU FREE ZONE COMPANY Founded in 1964 Turnover € 1.66 mill. No. of employees 13 Storage area ca 25 ha Covered warehouse space 40,000 m2

PUKKILA Founded in 1874 Turnover € 14.5 mill. No. of employees 44 Shops in Finland 5 Part of the Italian Ricchetti Group

Aboard 1/2017

PHOTOS WOO FILMS

The port offered unique shooting opportunity from a crane at a height of 25 metres.

Mexican mindscape WAS FILMED IN TURKU

The Port of Turku’s crane operator acted as an important extra at the filming of Bayoneta. Another Port employee was recruited as an extra on the fly.

Luis Gerardo Méndes (starring role) in the church.

The Port of Turku turned in February into a shooting location of a Mexican-Finnish film called Bayoneta. A new twist was added to the screenplay after the producers had first visited the Port in the autumn.

The wind is blowing on the corner of Vallihaudankatu street near the Port of Turku. The ground is covered by a few centimetres of snow. The film crew adjusts a large canvas that reflects the natural light. In the starring role of Bayoneta the Mexican actor Luis Gerardo Méndes is far from the warm climate of his native country. This is not a filming location of the popular Netflix series Club de Cuervos. Instead Mr Méndes plays Miguel ”Bayoneta” Galindez, a former professional boxer who is training hard. In the film’s world, Bayoneta is a man running away from his past. Life has brought him to a foreign country, Finland and Turku. In the port city the days go by as a coach at a boxing gym. Then he gets once more in the ring to face his past.

”AN AMAZING EXPERIENCE”

Director Kyzza Terrazas stresses how friendly the people in Turku are – they have literally opened the doors to their homes.

“Moving a big film crew from one place to another is easy here.” The screenplay of Bayoneta underwent an unusual twist last autumn, when the producers and director Terrazas were checking the shooting locations. They were very happy just about receiving a permission for filming from the Port of Turku.

Shooting up in the air was challenging and there was only limited space. “This could not have been filmed in any other place”, Mr Lay says. “The outcome of this shoot looked good”, says the film’s Finnish producer Johanna Enäsuo from Matila Röhr Productions Oy.

TEXT SINI SILVAN PHOTOS SINI SILVAN

The shooting will continue in Mexico City. The Finnish actors playing in the film are Joonas Saartamo, Laura Birn, Ilkka Koivula and Ville Virtanen.

The Finnish premiere is expected in spring 2018, says Johanna Enäsuo.

THE PORT SUPPORTS FILM PRODUCTIONS Antti Pekanheimo says that the Port aims especially at supporting the activities of the West Finland Film Commission. That shows the significance of films to marketing and their effect on promoting tourism. “We would be happy to have a new Lord of the Rings trilogy shot here”, he chuckles. Bayoneta’s production team of 60 people is significant. ”It’s important to us that we can offer them the facilities that we have.” The goal is to arrange the filming so that it does not interfere with the Port’s regular operations. “The film crew even got wintery weather. Just what they were hoping for”, Mr Pekanheimo says.

Film productions are important to the Port of Turku as a passenger harbour. Tourists are attracted by offering them the chance to visit port and city views familiar from films.

“Deputy Harbour Master Antti Pekanheimo took us to see the shooting locations”, says Rafael Lay, the Mexican producer of the film. The production crew was given access anywhere, even up to a harbour crane: “We went back to Mexico and we had to make changes to the screenplay”, Mr Lay says. The view over the port was so fascinating that they had to get it into the film. One of the turning points of the film, ”life changing discussion”, was shot in a container crane at the height of 25 metres and using TurkuSteve’s telehandler. Aboard 1/2017

KriSu 2017K brought around 100–200 participants every day to Aboa Mare’s premises in Turku.

CURRENT NEWS

HIGH NUMBER OF VESSELS AND VARYING ICE CONDITIONS REQUIRE EXERCISING The Maritime Rescue Co-Ordination Centre receives an emergency call on the collision of a passenger ship and a small coastal tanker off Helsinki. The rescue work in a major incident requires close co-operation between the police, navy, emergency services, the Finnish Environment Institute, and the shipping companies involved. Fortunately the situation described above only occurs on the displays of Aboa Mare’s command centre as part of the national KriSu 2017K major incident exercise. The simulated collision tests the ability of the authorities to manage the salvage operations and encounter crisis situations.

Some 200 emergency services professionals and students worked at the exercise in four cities in midFebruary. KriSu 2017K brought around 100–200 participants every day to Aboa Mare’s premises in Turku. ”We are lucky not to have had any major sea accidents in Finland for a long time, but that’s exactly why the preparedness has to be maintained through simulated situations. The communication link between different authorities has to remain strong”, says Ossi Westilä, Manager of simulator training at Aboa Mare. Organised since 2009, the joint exercise will be facing changes, as it will become part of the Hazard port

safety project of the EU countries from the beginning of next year. This year, an international team of experts examined the ways of working of the Finns in the exercise centres in Turku and Kuopio. Aboa Mare has previously provided training, for example, to authorities heading to salvage operations in the Mediterranean. ”As I see it, we have two maritime safety issues that need to be taken into account more carefully. The increased traffic volume and the varying ice conditions and the ability of the crew to act in such conditions create a need for frequent exercising in the future, too”, Ossi Westilä says.

Ossi Westilä led the simulation activities within the KriSu 2017K exercise in Aboa Mare.

Tall Ships Races Turku promises eastern exotica Organised from 20–23 July, Tall Ships Races Turku 2017 is expected to be the biggest public event during the centenary of Finland’s independence. The previous audience record of 500,000 people is expected to be exceeded. “The arrangements are going well. We have really worked hard to attract ships to Turku”, says Deputy Harbour Master Antti Pekanheimo from the Port of Turku. There will be a familiar noble sight, the 109-metre Mir from Russia, but also eastern exotica and representatives from the land of samba. “The 87 metres long square rig ship of the Sultan of Oman is coming to the event.” Other first-timers include a vessel of the Brazilian Navy, the 76-metre Cisne Branco, or white swan, and the Portuguese gaff-rigged schooner Santa Maria Manuela. The 68 metres long Portuguese ship was built in 1937. There will be more room for the ships on the eastern shore of the River Aura, and better ferry connections across the river will be available for the audience. Turku has taken particularly good care of the arrangements, ensuring that each sailor will be happy. The safety measures will be handled professionally. The patron of the event is President of Finland Sauli Niinistö.

Cooperation between Schenker and the Port continues in the Ovako area Schenker Oy and Port of Turku Ltd have signed a contract to extend the lease agreement of the distribution warehouse in the Ovako area by ten years until year 2027. -Both parties have been satisfied with the cooperation and also with the operation of the distribution warehouse, Jarmo Koskinen, Director cargo traffic of the Port of Turku, says. The distribution warehouse with a floor area of 32,000 square metres is one of the largest in Turku economic region by warehousing capacity. The positive trend in the Port’s cargo transports is also reflected in the high utilization rate of the port area’s private warehouses and terminals. If necessary the Port has the readiness to increase its warehouse capacity quickly.

A new vessel for Viking Line for the Turku–Stockholm route Viking Line has signed a letter of intent on a new passenger vessel for the Turku–Åland islands–Stockholm route. The letter of intent on a 218-metre ship with a capacity of 2,800 passengers was made with the Xiamen Shipbuilding Industry Co. Ltd shipyard. The new vessel will be delivered in spring 2020. The letter of intent includes an option on another ship. Driven by liquefied natural gas (LNG), the new passenger vessel will be implemented as a co-operation project with Finnish and European suppliers. Contributors include e.g. Deltamarin, Wärtsilä and ABB Marine. The interiors will be designed in Scandinavian style. The final agreement on the investment of around 190 million euros is due to be signed this spring.

Aboard 1/2017

Highly processed industrial products are shipped fast around the world through the Port of Turku.

Finland’s economic well-being is based on foreign trade. Imports account for around 40 per cent of our gross trade and exports for another 40 per cent. Due to Finland’s geographic location, most of the foreign trade transports are carried by sea. In 2015, 77 per cent of Finland’s imports and as much as 90 per cent of exports measured in tonnes were transported by sea. TEXT KARI AHONEN PHOTOS MARKKU KOIVUMÄKI

THE FASTEST SEA ROUTE FOR EXPORTS STARTS IN TURKU Due to Finland’s location, efficient logistics is one of the key factors for the competitiveness of exports. Succeeding on global markets calls for speed and precision, so that the products can be delivered to the customers as per the agreed schedule. In the Port of Turku, all players are committed to developing their services according to the requirements of logistics. As a result, a growing share of the products of Finnish industry is exported via the Port of Turku.

REGULAR CONNECTIONS TO THE KEY TRADING PARTNER COUNTRIES Last year, exports via the Port of Turku increased by around 11.5 per cent on the previous year. There are a number of reasons for the growth, the most important of which is the fast and regular liner traffic to the key export countries of the Finnish industry.

”The location and uncongested hinterland connections make Turku an attractive export route.”

As for the exports of goods, the Port of Turku has increased its share of project exports of the heavy industry and liner traffic to Germany in particular. The development of the latter has been speeded up by the increase in the number of Finnlines’ weekly departures and the growth of the cargo capacity. Capacity for the growing exports is also offered by the other routes to Continental Europe and England which connect Turku to the key ocean lines. In unit cargo, Turku has a solid position as the centre for Finland’s Scandinavian traffic. The Port offers the fastest sea route to Sweden which is used annually by around 110 000 trucks and trailers. The service between Turku and Stockholm is complemented by regular ship connections to Denmark, Norway and the Baltic States.

LINER TRAFFIC LEANS ON CONVENIENT AND RELIABLE SCHEDULES The importance of speed to exports is also emphasised by the representatives of Mann Lines Oy which operates traffic between Turku and Harwich. According to both Timo Helanto, General

Manager and David Symes, Director of Operations, the speed of transports is due to a number of factors. ”In short sea traffic the speed is based on scheduling of traffic and the frequency of ship departures. In Turku both are optimal, especially in terms of unit cargo destined to Scandinavia and Germany. As there is also plenty of cargo capacity for truck and trailer transports, room can be flexibly found for export transports even at short notice”, Timo Helanto says. According to David Symes, time is also very important to the Finnish basic industry. To achieve the customers’ trust the shipments need to depart and arrive as promised. The requirement of delivery performance is absolute throughout the transport chain. ”The products of many customers of Mann Lines are shipped all the way to Asia and the Americas. For those industrial companies our connections to the ocean lines departing from Bremerhaven are an important element of the logistics package. The transport schedules need to fit together so that the valuable cargo need not wait in the intermediate port, Aboard 1/2017

Careful and swift cargo handling is an important part of the services offered by the Port of Turku.

but the transfer time from feeder traffic to the overseas lines remains as short as possible. Regarding Mann Lines, we have managed to synchronise our own schedules with the production rate of our customers and the ocean lines”, David Symes says.

GOOD LAND CONNECTIONS AND SHORT TURNAROUND TIMES There are several shipping companies operating liner traffic from the Port of Turku whose schedules allow export industry companies to choose the solution best suited to the transport need at hand. That is also supported by the location of the Port, thanks to which the export goods coming from further away can be shipped in the same evening, even if the loading at the factory takes place at close of business. ”The Port of Turku also offers excellent connections for inland transports of the export industry. The road connections to the key Finnish industrial regions and the Helsinki region are fast and uncongested, mostly of motorway standard. The needs of heavy industry in particular are also served by the railway to the Port with the opportunity to load and unload trains indoors, sheltered from the weather”, Timo Helanto reminds.

In addition to good land connections, Mr Helanto mentions short turnaround times as one of the Port of Turku’s strengths. There’s no need to wait for loading and unloading in Turku, which speeds up the whole transport chain. Thanks to a sufficient number of berths and efficient cargo handling services, vessel calls also run smoothly.

SERVICES ON QUAYS ARE ENHANCED BY PROFESSIONAL STEVEDORING Cargo handling services in the Port of Turku are provided by the leading companies in the field whose experienced professionals take care of loading and unloading of vessels carefully and safely. Mann Lines’ partner is port operator Finnsteve. ”Seamless co-operation with the stevedoring company ensures that our ship will depart on schedule. The departing cargo units are compiled in advance before the arrival of the ship, and the right number of men and equipment is ready on the quay, so that they can start work as soon as the ship has been moored. Traffic guidance is demanding, as trailers and roll trailers go in and out of the ship. By reading the ship’s cargo plan you need to identify what part of the cargo will be unloaded and what will possibly continue to the next port. Thanks to efficient co-operation,

the ships need not stay in port very long, which adds to the cost-efficiency of transports”, David Symes emphasises. With a view to the speed of cargo handling, the Port of Turku has invested in the development of crane operations. During a project completed in spring 2017, the Port’s container and multipurpose cranes went through comprehensive basic repairs. For example, the crane

Port of Turku’s liner traffic also serves transoceanic exports.

“Trucks need not wait for loading and unloading in Turku, which speed s up the whole transport chain.” logic was modernised to meet the current requirements, which ensures smooth flow of crane operations and speeds up the lifting operations. The crane capacity has been dimensioned to meet the requirements of heavy industry up to 48 tonnes.

RENEWED STOCK OF VESSELS OPENS UP NEW OPPORTUNITIES The cargo capacity of the route also plays a role in ensuring the fast flow of goods. The capacity of the liner traffic from Turku has grown both due to increased number of departures and the renewal of the stock of vessels During 2017, e.g. Baltic Line and Mann Lines will renew their stock of vessels. The fist new ship in operation is Baltic Line’s m/v Baltic Madonna. The new vessel sails from Turku to Norway in alternating weeks with m/v Mini Star which is also being replaced by a new vessel during the spring. Furthermore, Mann Lines will introduce a new ship on its route from Turku via Bremerhaven to Harwich in the summer.

”Built at the Visentini shipyard in Italy, the ship is a ro-ro vessel equipped with a stern gate and its ice class is 1A. The cargo capacity on board is 2,800 lane metres plus separate car decks”, Timo Helanto, General Manager of Mann Lines, describes the new ship. Viking Line, which also serves unit cargo transports between Turku and Stockholm, announced in late 2016 that it has signed a letter of intent on ordering a new vessel. The new building project was preceded by planning work of several years related to the EU’s Motorways of the Seas project. The intention is to create a new kind of a ro-ro passenger vessel concept that responds to the needs of both cargo and passenger traffic, taking into account the sensitive environment of the Baltic Sea. Due for completion in spring 2020, the new ship will be 218 metres long and the length of its cargo space will be 1,500 metres.

MANN LINES is a sea transport company that offers its customers efficient connections between the key ports in the Baltic Sea region and northern Central Europe. In Finland, the home port of Mann Lines is Turku from where the company sails weekly to Germany, England and Estonia. The British-owned shipping company is part of Mann Group which also provides a wide range of forwarding, warehousing and distribution services for its customers in different ports. Mann Lines has a warehouse with a floor area of 5,000 square metres in the Port of Turku. Aboard 1/2017

COLUMN

PORT THROUGH THE EYES OF THE NEW SALES DIRECTOR I started as the Sales Director of the Port of Turku at the beginning of 2017, so I’ve already learned to know the company and the people. During the first months I have also formed a clear view of the Port’s operations, challenges and opportunities. The Port of Turku is very different compared to my previous job in the Port of Pori. While in Pori we focused on serving the raw material supply to the industry, the cornerstones of the Port of Turku are lively passenger traffic and highly processed and valuable end products of industry. In Turku, the Port is clearly part of the urban structure, and has been so for centuries. In fact you could say that the City of Turku would not exist without the merchant harbour that rose along the banks of the River Aura a long time ago. The basics in Turku are in good shape. The Port has been developed in determined fashion, and there is a firm base for continuing the development work. The Port is surrounded by a successful and growing economic region, and there are functioning connections to other core areas of the business world. The Port of Turku has been regarded in the European Union as part of the TEN-T core traffic network, which we have already been able to use in the financing of our project activities. There is still room for improvement in the Port’s operations, and work needs to be done both by the Port’s own organisation and other players in the port. Our range of liner connections is good. We are the main harbour for Scandinavian traffic in Finland, and the traffic to Germany is again growing. There is still room for growth in the southern parts of the Baltic Sea, including e.g. Germany and Poland. Changes in the eastern trade also involve potential, although Russia has developed its own ports. Regarding quay capacity, the Port’s resources can take a significant increase in traffic volumes. The development, however, also depends on our partners’ willingness to develop their services with a keen ear to the customers’ wishes and needs. The Port is ready to invest in customer relationships, when the commitments to co-operation are made for a long enough time. As for passenger traffic, the ability of the City of Turku to attract Swedish tourists to the city also makes a difference. Ideas for that are needed both in the tourism and business sectors, so I’ve been told. Our vision for the 2020s is that the Port of Turku will continue to be a player and partner appreciated by its customers in the field of logistics, and a responsible corporate citizen. JAAKKO NIRHAMO Writer is the Sales Director of Port of Turku

Jaakko Nirhamo is a 48-year-old Master of Science (Technology) in production economics with long experience both in Finnish export industry and port operations. He spent part of his early career in international project assignments e.g. in Eastern Europe and Asia. From 2003 on he worked as the Manager of the operative department in the Port of Pori, being responsible e.g. for the port’s operations, purchases and technology. In 2007, Mr Nirhamo was appointed the Port Director of Pori, and after the incorporation the first Managing Director of Port of Pori Ltd. He left Port of Pori Ltd in 2016 to seek new challenges and to develop himself as a professional. Born in Kurikka, Mr Nirhamo describes himself as an ordinary Finnish man and is married with three children. His leisure activities include various sports and physical exercise, favourites being ice hockey, motorcycling, gym, and winter swimming.

CURRENT NEWS

Two new vessels for Baltic Line Baltic Line AS focuses on conventional traffic with a renovated pair of vessels sailing under the Finnish flag. Mv Baltic Madonna started in January and from April on it will sail in alternating weeks with mv Baltic Amelie on the weekly route Turku–Baltic States–Poland–Denmark–Norway. In addition, Baltic Line offers a connection from Gävle to Turku every other week. The long-term shipping contracts of the vessels mean that the ships create 30 new jobs under the Finnish flag for years. The vessels started operations after thorough docking: the hulls and cargo holds were sandblasted and painted, lifts serviced, and bridges modernised. Turku Stevedoring Oy delivered new forklift equipment to the vessels. In addition, mv Baltic Amelie was fitted with completely new tween decks. The new vessels replace mv Link Star and mv Mini Star that operated the route previously. “Returning to conventional traffic makes it possible to utilise the whole bearing capacity of the vessels. That will considerably increase the cost-efficiency of the route”, says Mika Saarinen, Sales and Business Development Director of Baltic Line.

Port in Social Media

www.linkedin.com/company/port-of-turku-ltd

The upcoming spring brings transport logistic 2017 exhibition, the world's leading trade fair for logistics, mobility, IT, and supply chain...

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Farewell Mini Star and welcome new Baltic Lady, Amelie! #cargotraffic #Turku #portofturku #Amelie

Aboard 1/2017

THROUGH THE PORT

TEXT JAAKKO MIKKOLA PHOTOS LOJER OY, JAAKKO MIKKOLA

Hospital and care equipment manufacturer Lojer has tripled its exports during the past ten years. The company relies on Finnish design and manufacturing expertise and exports its products to the key markets in Europe via the Port of Turku.

Lojer’s products have convinced sports professionals, too. Boxer Eva Wahlström visits Lojer manufacturing facility in Sastamala.

SUCCESSFUL HOSPITAL EQUIPMENT SUPPLIER has confidence in logistics The high quality of manufacturing and pioneering in design expertise are often named as the key factors for the competitiveness of Finnish industrial production. Hospital and care equipment manufacturer Lojer has become a successful export company by keeping the designing and manufacturing of its products in Finland close to each other. According to Export Director Pekka Koski, functioning logistics is one important link in the chain for Lojer in securing its competitive advantages.

”Keeping the manufacturing in Finland is in fact our most important advantage in sales, as that way we are ourselves responsible for all aspects of quality. Luckily Finland’s industrial infrastructure is so advanced that we have found most of our subcontractors nearby”, Pekka Koski says. High-quality hospital furniture and e.g. treatment tables used by physiotherapists are exported from Lojer’s three plants in Finland to destinations including the Middle East and Far East.

”In export trade, you have to think about the value of the product. I have crystallised it so that the products shipped to the furthest destination are more expensive. The general rule of thumb is that products subject to hard price competition that take up a lot of transport space are delivered to the customers using means other than airplane”, Pekka Koski explains. New market areas have contributed to Lojer’s strong growth, but around 70 per cent of the total volume of the company’s exports still goes to Europe,

Lojer’s products depart from the plant to the customer in Nybrok’s trailers. Treatment tables are carried from Turku to Travemünde on board the Finnlines ship Finnpulp.

especially the Nordic countries and Central Europe. The company’s products are shipped to those key markets by road and sea. An important intermediate stop along the way is the Pansio Harbour in Turku from where Nybrok trailers carrying Lojer products continue to Continental Europe on board Finnlines ships. ”The products are shipped from our plant as general cargo, and sometimes in containers. The parts of the transport chain have no significance for Lojer per se, as long as everything works reliably and in optimised fashion. We get extremely few complaints about transports, so it’s easy to trust these practices.” In its line of business, Lojer has developed solutions that take e.g. the safety of patients and staff into account in a new way. The expertise of the company, based in Sastamala, has gained reputation, for example, in conjunction with the new Karolinska hospital in Stockholm.

LOJER OY Founded in Sastamala in 1919, the company specialises in hospital and care equipment. Employs 140 people, of which 120 in Finland. Manufacturing facilities in Sastamala and Kempele and a logistics centre in Pennala. The only company in its line of business that has been granted the Finnish key flag symbol and has its designing and manufacturing in Finland. Exports account for around 60 per cent; the key markets are the Nordic countries, Central Europe, Russia, and East Asia. The parent company’s turnover for 2016 stood at around 18.6 million euros; total including subsidiaries around MEUR 25.

According to Pekka Koski, the essential thing in export trade is to think about the total value of the product.

The traditional manufacturer has for the past decade been developing its operations into a more comprehensive direction which involves e.g. maintenance services throughout the product’s lifecycle. ”Previously we only had contacts with the customer in connection with sales, but now we stay in touch regularly. Our earning logic is no longer based only on manufacturing, but it involves maintenance and other services. In addition, continuous contacts provide excellent support to our product development”, Pekka Koski stresses. Aboard 1/2017

ENGINES SUPPLIED GLOBALLY The shipyard industry is now doing well in Finland, but the companies of the maritime cluster also export their products directly. Wärtsilä’s engines have been shipped around the world for decades. A quarter of the company’s net sales currently come from on-shore power plants.

The corridors of Wärtsilä’s Turku office are filled with international and youthful staff. The company operates in over 70 countries, and the Turku office provides, for example, training on operating and servicing of engines. “Some 2,500 trainees from dozens of countries come to Wärtsilä’s Turku Training Center every year”, says Ari Schiestl, Category Manager, Logistics at Wärtsilä.

AN EXCELLENT PRODUCT IS NOT ENOUGH Reliability of delivery is the pride of Wärtsilä, and functioning logistics is one key element of that. “The product has to be delivered to the right place at the right time. Failure to do so means that there is no successful product”, Mr Schiestl sums up. Wärtsilä’s products are often exported by sea, even if the product were not destined

for a ship. In Finland, the logistics related to transports is concentrated to the ports on the west coast. From the Port of Turku Wärtsilä’s finished products are shipped e.g. via Bremerhaven around the world. “There are good further connections to, for example, China and Singapore which are important to us”, Mr Schiestl says.

TEXT KALLE KIRSTILÄ PHOTOS ROBERT SEGER

Goods going to Wärtsilä’s plant in Vaasa also arrive through the Port of Turku. “Hundreds of different components are needed in the manufacture of engines, and the suppliers are located in different parts of the world.”

FROM ENGINES TO SERVICES

Approximately 2.5 million kilos of consolidated shipments of Wärtsilä’s suppliers are annually transported from Turku via Travemünde to the corporation’s plant in Trieste. The goods from the suppliers are compiled together in the Port of Turku area and are then sent out as full trailers.

Let’s get back from sea to land. Many people associate Wärtsilä with the maritime cluster in particular. The operations of the Marine Solutions segment, however, only account for a little over one-third of the corporation’s total net sales today. The Energy Solutions segment has been growing for a long time.

“Weekly shipments provide a suitable flow for the goods, as the Trieste plant also operates on weekly rotation”, Mr Schiestl says.

The strength of Wärtsilä’s Energy Solutions expertise is the building of power plants that use many different fuels. It has achieved significant growth

especially on the markets of gas power plants by winning market shares from turbine-driven power plants. “You could say that we’re number one in the world in that”, Mr Schiestl says. He has worked at Wärtsilä for 23 years and says that it’s not a question of supplying equipment, but serving the customers throughout the lifecycle of the project sold to them. Spare part, operating and administration services already account for over 45 per cent of the net sales of Wärtsilä Corporation. “We don’t actually sell engines, but energy and everything related thereto. Instead of engines we should talk about energy know-how in which the customer purchases the supplied system as a lifecycle solution.”

THE LONG LAST MILE For a corporation that operates in over 70 countries and often supplies its products to remote regions with difficult access logistics is a challenge. Wärtsilä has high requirements for its logistics partners. “The most important thing is reliability, which means that the products shall be delivered undamaged to the right place at the right time. The price/ quality ratio also has to be right”, says Kaj Seppälä, Manager, Transport & Logistics at Wärtsilä Marine Solutions. Wärtsilä’s clientele is global and the operating environment is the whole world, but the logistics partner is required to have local knowledge. According to Mr Seppälä, the shipments of the marine segment are always carried from port to port, but the logistics expertise is emphasised in the energy segment where turnkey projects are provided. “There the so-called last mile can be in practice a thousand kilometres in a region with no proper roads. We may even have to build bridges and so on”, Mr Seppälä says. According to him, logistics expertise is an important part of Wärtsilä’s reputation as a reliable supplier. Failing in that may be fatal. “It requires understanding of project logistics at practical level, advance studying of existing routes, and resources. If the product is of top

“The product has to be delivered to the right place at the right time. Failure to do so means that there is no successful product”, Mr Schiestl sums up.

quality, the logistics expertise also has to be. Succeeding on that last mile is the key to success in the whole project.”

The most powerful diesel engine in the world A product of the newest generation of Wärtsilä’s engines is Wärtsilä 31 manufactured at the Vaasa plant. It is the world’s most efficient 4-stroke diesel engine and weighs over 180 tonnes. Only six such engines have been sold so far, for example to Siberia, Norway and Denmark. The launch was preceded by long-time development work, and more experience is now being collected on the new low emission engine. “We are only just starting with it, but the expectations are high”, says Ari Schiestl, Category Manager, Logistics.

WÄRTSILÄ CORPORATION President & CEO Jaakko Eskola Net sales MEUR 4,801 - Energy Solutions MEUR 943 - Marine Solutions MEUR 1,667 - Services MEUR 2,190 Net sales by region - Americas 22% - Europe 33% - Asia 37% - Other 8% Order portfolio total MEUR 4,927 Number of personnel ca 18,000 Over 200 offices in nearly 70 countries

Aboard 1/2017

CURRENT NEWS

Renovation of warehouse no. 180 completed Located in the West Harbour, warehouse no. 180 has been used for bulk storage for years, but over time its condition had deteriorated. The renovation project commenced at the beginning of November 2016 and the warehouse was handed over to the lessor on 3 March. The Port has leased the warehouse on a long-term contract to Stevena which has paid attention to the increasing need for warehouse space in the past few years. “There has been shortage of warehouse capacity for a while. We noticed that it’s not a momentary peak in the need for warehouse space, but there will be need for extra space in the future, too”, says Markku Mäkipere, Managing Director of Stevena.

“Including the newly rented warehouse, we have around 60,000 square metres of storage space, of which one-third in Turku”, he adds. In conjunction with the renovation, the warehouse space was divided into three sections of around 1,000 m2 and two sections of 500 m2. The inner walls were replaced, the floors were renewed and surfaced with special coating, and new lighting was installed. The surface selected for the floors was special tarmac, which according to Jouni Hildén, Manager of Technical Planning of the Port of Turku, is better suited for the storage of bulk goods. “The coating is denser compared to regular tarmac. Thus it has smooth

surface and is easier to clean”, Mr Hildén says. The lighting was implemented using LED technology. “The energy savings and user comfort of LED lights benefit both the Port and the customer. The servicing interval of LED lights is longer and they consume less energy”, Mr Hildén points out. “After the renovation, warehouse no. 180 meets our needs as a high-quality warehouse that is suited especially for the storage of unit, general and bulk cargo carried in conventional vessel traffic”, Mr Mäkipere describes the intended purpose of use of the warehouse

CURRENT NEWS

Heading together to Transport Logistic fair The Port of Turku will have a joint stand at the Transport Logistic fair. The biggest logistics industry event in Europe, the fair will be arranged in Munich from 9–12 May. “We are one of the biggest players in road transports in Europe and are based in Turku, so it’s natural to participate at the Port of Turku’s stand. It’s important to us that our partners can come and meet us”, says Marketing Manager Hanna Heinonen from Freja Oy.

In addition to Freja Oy, the other participants at the stand are Mann Lines Oy, Turku Free Zone Company, Port of Turku Ltd, and Moonway Oy. Container transport company Moonway Oy considers it great that the Port offers an opportunity to participate in the fair together. “A large share of our customers and clients come from abroad, so this is a good place to have discussions”, says Juha Makkonen, Sales Manager at Moonway Oy. Personal contacts are important. “It’s also a pleasure to represent our home port.”

If you need a ticket to the fair, please send us your contact details to markkinointi.satama@portofturku.fi and we will send you an electronic admission voucher. The online voucher enables you to a visit of transport logistic free of charge.

The Port of Turku’s joint stand is located in hall B3, 321/422.

Team Rynkeby – Cycling to Paris The Port of Turku participates in supporting the Team Rynkeby charity organisation. Crane operator Juha Kujala will be representing the Port’s personnel on the way to Paris. Team Rynkeby will cycle to Paris for the 16th time during the period from 8–15 July 2017. The project comprises 1,700 cyclists and 450 volunteers in 44 teams from five different countries. There are 18 teams from Denmark, 13 from

Sweden, 6 from Finland, 5 from Norway, 1 from the Faroe Islands, and 1 team from Iceland.

childhood cancer association in that country. In Finland the money will be donated to Sylva ry.

The purpose of Team Rynkeby is to raise money for children with cancer and their families. Rynkeby Foods A/S covers the primary costs of the project, and the cyclists pay by themselves for their bikes, clothes and travel. This means that every penny that Team Rynkeby raises in each country goes to the local

In 2016, Team Rynkeby raised just over € 8.84 million to fight childhood cancer in Denmark, Sweden, Finland, Norway and the Faroe Islands. Sylva ry in Finland received € 331,795.

Aboard 1/2017

INDUSTRY PROFESSIONAL

THE SEASONS AFFECT TYRE WAREHOUSES

TEXT AND PHOTOS SINI SILVAN

The Port of Turku is a familiar place of work for Jukka Ylikännö since the time when he was studying in the commercial institute. As a supervisor at DB Schenker’s warehouse he ensures that everything runs smoothly. Tyre warehouses are under control and the customers get the products they need as agreed. In the Pansio Harbour, a truckload of car tyres has arrived at the tyre warehouse of DB Schenker’s customer in Turku. Warehouse Supervisor Jukka Ylikännö ensures that everything is right: the cargo is what it’s supposed to be, and the number of products matches the order. After unloading and reception of goods he signs the papers and the driver moves on. “There are thousands of square metres of indoor storage space, part of it in the Pansio Harbour, some in the Late area”, he says about the warehouse volume and his place of work. The work is characterised by seasons. While there’s still snow on the ground in late winter, you can tell for sure that the summer is coming. The warehouses are filled with summer tyres

and gardening machines. Mr Ylikännö shows a warehouse with long lines of ride-on lawnmowers waiting for the summer. In the warehouse Mr Ylikännö greets familiar inspectors of the Finnish Food Safety Authority Evira who are taking samples from the transport frames of timber. We don’t want new wood-destroying pests to come to Finland with imported products. “Winter tyres will begin to arrive at the turn of June and July.”

PRODUCTS SUPPLIED TO CUSTOMERS AS PER NEED Mr Ylikännö’s job is to take care of the importer’s warehouse and its logistics. The products are shipped from the factories to a warehouse in the Port of

At the end of a working day Mr Ylikännö sets up everything so that it’s easy to come and continue from there the following day.

Turku. As the storage takes place in the port, the customer’s own shops in different parts of Finland can keep their stocks at a minimum. Products are only ordered as per need. Mr Ylikännö is responsible for arranging the loading and transport of the ordered products as flexibly as possible. Everyone does their share, and as the supervisor he sees to it that the pieces fall in place. “I do the office work myself, agree on unloading times and arrange the collection of products.”

LANGUAGE SKILLS AND GESTURES ARE NEEDED English and Swedish skills are needed in the job. Not many words were exchanged with the driver who just left, though.

Some of the drivers use just gestures and a few words of English. “Shipments come from Central and Southern Europe.” The phone rings and Mr Ylikännö agrees on some changes: one driver has reached the destination ahead of schedule. The agreed unloading time is set for the following day, but luckily the timetables can be adjusted. The driver can unload the cargo and move on. Mr Ylikännö has been working in the tyre warehouse for the past three years. The Port is a familiar ground for him, though. Already while studying in the commercial institute he worked in the Port on evenings and at weekends. Forwarding companies have merged over the years – in theory his employer has remained the same. “I like my job. There’s a lot of variation. It’s busier now than before, as is probably the case everywhere.” Mr Ylikännö appreciates the fact that the employer is a big firm and that the work has been steady. He keeps his energy levels high by playing ice hockey and football 3–4 times a week.

”Port logistics is a world of its own”, Warehouse Supervisor Jukka Ylikännö says. He is happy in his job.

Training of customs dogs is based on play Drug detection dog Lexi from the Turku Customs was awarded the title of Customs Dog of the Year on 10 December 2016. Lexi works at the Turku Customs in the mobile control team in Ostrobothnia. Lexi contributed significantly when the Customs managed to reveal the attempted smuggling of the biggest load of amphetamine and cocaine ever in Finland in the Port of Vaasa in January 2016. The Customs has trained and used drug detection dogs since 1969. All customs dogs live with their instructor as family members, and their training is based on play. The detection has to be fun for the dog. The training starts with socialising, environmental exercise, and familiarisation with the working environment. After diverse work experience of about one year, a customs dog has the necessary skills for the varying working environments of customs control. The dog and its instructor are trained and its skills are continuously tested on refresher courses of different duration up until its retirement. Aboard 1/2017

The Port of Turku offers a competitive solution for import and export transports of trade and industry. Fast and high-frequency ship traffic both to Scandinavia and Germany and direct connection to ocean lines add flexibility to transport schedules and strengthen the delivery performance of companies. Thanks to the good and congestion-free road connections to and from the Port, time is saved also in Finland. In addition to a beneficial location, the Port offers its customers modern and efficient basic services ranging from load handling to warehousing. The strong overall concept makes the Port of Turku a reliable link in the supply chain of even the most demanding products.