Port of Kokkola - Action Port Newsletter 1/2022

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PORT OF KOKKOLA

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Break Bulk since 1825

EDITORIAL

Russia’s invasion must be fully condemned R

ussia’s attack on Ukraine affects the world economy in many ways. We are extremely disappointed and strongly condemn the Russian invasion, which is also causing tremendous human suffering in Ukraine.

Russian transit traffic has been operating in Kokkola since 1979, since the era of the Soviet Union. There has been a wide variety of phases over the decades, such as the breakup of the Soviet Union at the beginning of the 1990s and the Russian economic crisis in 1998. From the beginning of the 21st century, we have experienced stable growth with the exception of a few crises making minor impacts.

With this in mind, what is happening in Europe and Ukraine at present came as a total surprise.

From an economic point of view, the recent decades, which included collaboration with Russian companies, have been very positive for Port of Kokkola.

Long-term trading partnerships with our Russian customers have contributed to a strengthened balance sheet. However, at the time of writing this, the fact is that as a result of the unimaginable invasion by Russia, Russia’s transit traffic has ceased at the port of Kokkola.

However, the strategic and financial planning of Port of Kokkola we have also considered that situations as described may arise, but business must go on even if there is a risk that parts of goods traffic may vanish overnight. Of course, we shall adapt to the prevailing economic situation, and fortunately the economic impact is alleviated by diversity of the port’s the clientele and freight traffic. Thanks to this, our dependence on Russian transit traffic has been reduced.

It is important to remember that, although transit traffic has been highlighted in public in the last few months, companies in the Kokkola Industrial Park (KIP), the Central Finland mining industry and retail businesses have long been important pillars of support for the Port of Kokkola.

In addition, last year there were many happy news, one example being the transport of wind turbines that started in the summer.

Overall, 2021 was a reasonably good year with freight transport making up 6.5 million ton. In collaboration with Kokkola Industrial Park actors, the City of Kokkola and the Fairway Agency, we were able to open a special transport route that leads from the Silverstone Port through the industrial area on to the main roads going to the north, south and central Finland. Many thanks to all the parties. From now on, Port of Kokkola will also be heavily involved in the logistics services of wind turbine components. In addition, the KIP companies will continue to use a project traffic corridor that serves their needs.

Finally, thanks to all customers and partners for the past year. We shall continue to closely monitor the developments.

TORBJÖRN WITTING CEO Port of Kokkola Ltd.

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Contacts: CEO TORBJÖRN WITTING Tel. +358 40 5119 595 torbjorn.witting@portofkokkola.fi Sales Manager MIKA SUVANTO Tel. +358 40 1843 277 mika.suvanto@portofkokkola.fi Harbour Master TOMAS MIKKOLA Tel. +358 50 5725 514 tomas.mikkola@portofkokkola.fi Development Manager JYRKI ROUKALA Tel. +358 44 7809 133 jyrki.roukala@portofkokkola.fi

The Port of Kokkola, a first-class setting for project and container traffic

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ort of Kokkola will continue to focus on the development of project and container traffic. The whole of the port of Kokkola consists of three ports areas, the latest investments focused on Silverstone Port.

– After the last of the ongoing expansion investments are completed in June this year, we will have a total of 15.4 hectares of asphalted storage areas in Silverstone Port. In addition, the gravelled container field is about half a hectare. The construction of new port areas will continue after this, says Tapio Lampinen, Technical Manager of the Port of Kokkola. Warehouse areas are designed for various project goods such as wind turbine components.

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RECENTLY, the extension of the Silverstone quay was also introduced. There are now three berths, one of which has a depth of 11 metres. In practice, this will double the vessel size in the Silverstone Port from 25,000 dwt at best to 50,000 dwt.

The whole area is complemented by heavy crane capacity. Silverstone quay is home to two 150 ton Gottwald 7 Series cranes, which are the strongest cranes in the Bothnian Sea. The second of the Gottwald cranes was taken into use in early December.

In addition, Port of Kokkola is preparing the land for new warehouse buildings. Currently, a total of 84,000 square metres of covered storage space is in use. All warehouses at the port are bonded warehouses.

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Teresa Myllymäki (left), Anne Tiala, Roosa-Maria Aro, Kati Härmälä, Daniel Sundell and Johan Smedjebacka serve customers at Backman-Trummer’s Kokkola office. Maarit Harald, Marita Utter and Laura Peltoniemi are missing from the picture.

Full service container shi Regular container transports guarantee companies well-established connections all over the world. Oy Backman-Trummer Ab is an important player in the Port of Kokkola, especially as a service provider for container traffic. Johan Smedjebacka, Backman-Trummer’s regional director, sees a lot of growth potential in the container traffic through Kokkola.

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ackman-Trummer’s net sales are also growing strongly.

– In 2020, our turnover was EUR 19.2 million and last year EUR 29.2 million. About half of the revenue growth came from new customers. In exports, interest in container transport is constantly increasing, partly as a result of the increased costs of truck transport and the shortage of drivers. Based on discussions with customers and the arrival of larger container vessels, I believe that the number of containers leaving Kokkola can be doubled, Johan Smedjebacka estimates and refers to Wallenius Sol’s decision to launch two new RoRo vessels on the Kokkola route this year.

According to him, the increase in ship capacity creates good conditions for the growth of container traffic, and the new ships running on LNG fuel are, of course, also an environmentally friendly solution.

Container transport can be implemented in many different ways depending on the customer needs.

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– We are, for example, able to customize container transports for those customers who currently transport large quantities by truck. For example, if the customer does not want to receive the goods in containers, the goods can be delivered by flatbed trailers. If the goods do not fit in the containers, it is possible to put them on pallets, which in turn are transferred to the flatbed in the port of arrival and then transported by covered trailer so the final destination.

– If another RoRo ramp were to be built in the port of Kokkola, it would provide even wider opportunities to develop new traffics. The industry has a lot to transport, for example, from rolls of paper to large bags of raw materials, which would be facilitated by a ramp investment, Smedjebacka continues.

ACCORDING to Johan Smedjebacka, an increasing number of new customers wants a full-service option. At its best, the full-service concept means that the customer company does not necessarily need its own logistics department at all.

– Kokkolan Halpa-Halli Oy, whose container imports we handle, is one of our longest-standing customers.

When we receive a purchase order from them, our agent will contact the Halpa-Halli supplier in China to

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Container transport can be implemented in many different ways depending on the needs of the customers. Picture of Kokkola Silverstone Port.

ipping find out when the products will be ready at the factory.

After that, we deliver the containers to the factory and from there on to the port to be loaded on to the vessel.

Most of the containers arrive at Kokkola via Antwerp, where they are unloaded from the ocean going vessel and transferred to the feeder vessel. Finally, we handle the land transport of the containers to the logistics centre near HalpaHalli, Smedjebacka gives as a practical example.

Throughout the delivery, Backman-Trummer keeps the customer up to date of where the shipment is going and when the containers will arrive in Kokkola. After a renovation of Backman-Trummer’s IT-sytem, which will be completed soon, the customer will be able to follow the progress of the shipment directly via Backman-Trummer’s website.

Backman-Trummer has also been collaborating with boat manufacturer Nautor for a long time.

– After the purchase order, we take care of the entire logistics package on a turnkey basis from the time of signing the contract until the goods arrive. Thanks to the service, the customer’s buyers can focus on their own core business, i.e. sourcing, instead of having to handle the transport with all its details. If the customer wishes, they will receive only one invoice per month for all the shipments that month.

– If there are any problems during the trip, for

example related to pricing or schedules, we are the customer’s representative and will on behalf of the customer investigate these issues. We have our own contact person for each customer, in addition to which I myself have worked in the forwarding industry for a long time, including, as logistics manager. All of this helps us understand things from a customer perspective, Johan Smedjebacka says.

BACKMAN-TRUMMER is part of the KWH Logistics business group. The company has a total of 46 employees, eight of whom work in Kokkola and the rest in Vaasa.

– We are a traditional forwarding company whose services cover transports by sea, air and truck. In Kokkola, most of our operations focus on container traffic, while in Vaasa Backman-Trummer’s main focus is on truck traffic. Because we are backed by the KWH Group, whose volumes are large, wed are in a good position to offer competitive pricing.

– Our cooperation with Port of Kokkola is very good, and we both have a strong desire to develop the traffic further. Personally, I look forward to seeing what new opportunities for container traffic will be offered, for example, by the vehicle electrification and the raw materials needed for it, as well as project transports from Finland to Sweden, says Johan Smedjebacka.

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IN COOPERATION

Customs services are an important part of a functioning foreign trade An important task of the Finnish Customs is to promote the flow of foreign trade. Chief Customs Officer Sune Sjölund praises the co-operation between Port of Kokkola and the Finnish Customs, which helps the Customs to succeed in its own work.

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he Finnish Customs play a key role in, for example, in the crew changes on international cargo ships, which happen frequently in Kokkola.

– Kokkola is among the top Finnish ports in terms of volume in this matter. In the early days of the Corona pandemic, the number of exchanges declined, but now they are almost daily again, Sune Sjölund says.

When there is a change of crew, the Finnish Customs shall, as a matter of priority, verify that the persons have the proper qualifications for entry into the country, such as having valid travel documents. Some have a visa ready, but it is also possible to apply for e.g. a short-stay visa from the Finnish Customs. The Finnish Customs will issue a visa if the conditions for entry are met.

– In addition, the Finnish Customs visits ships to inspect certain matters as necessary, and sometimes inspections may be very thorough. In this way, we ensure that nothing is found on the ships that contravenes restrictions. Often the inspections target documents such as Tonnage Certificates.

THE TASKS OF THE FINNISH CUSTOMS include ensuring the smooth flow of international trade in goods and the correctness of trade in goods, as well as supervising the collection of taxes on goods. The Finnish Customs also protects society, citizens and the environment and is a key player in the fight against the grey economy and cross-border crime, such as drug crime. In addition, the Finnish Customs monitors compliance with import and export restrictions.

According to Sune Sjölund, it may come as a surprise to many how important a role the

Finnish Customs plays in the protection of society and control related to internal security under normal circumstances.

At the moment, the sanctions imposed on Russia by the West are particularly topical.

– The Finnish Customs authorities monitors the import and export of goods placed under a customs procedure in accordance with the decisions taken, in order to ensure that they do not contain anything that are in breach of sanctions. Among the items, the focus is on, among other things, potential dual-use products.

THE FINNISH CUSTOMS has a 13 strong mobile control team in Ostrobothnia. Of this, 1+4 are in Kokkola.

In the current Finnish Customs organisation, Kokkola is part of the maritime customs department, which is headquartered in Helsinki.

The Ostrobothnian Mobile Surveillance Team’s area covers six cargo ports, a passenger port and three international airports, so in addition to freight traffic, the Surveillance Team often has tasks related to passenger traffic.

– In all our activities, we strive to ensure that traffic is as flexible as possible; this is important for the Finnish Customs, too. This goal is promoted by co-operation with Port of Kokkola, where both parties have a low threshold to contact each other when common issues are being handled, says Sune Sjölund.

Chief Customs Officer Sune Sjölund.

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MY JOB

The Port Supervisor does not get into a rut at his desk Port Supervisors do their work in a marine environment. That suits Peter Nylund very well, who works as a responsible Port Supervisor and Foreman. For him, enjoying work, for example, means being able to work outdoors and smell the sea breeze.

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he sea has been present in one way or another throughout Peter Nylund’s career. Working days can bring, as you might expect, calm and storm.

– I am not used to sitting still at my desk, all my life I have been outdoors and in the archipelago. Hard to say exactly what is so fascinating about the sea. Maybe it’s because when you leave for somewhere, you may not always know where you are going or when you’re coming back. And in bad weather the sea is also cruel.

You must not leave just for fun. The sea must be respected, if not, you will be second, he says.

Nylund is from Taalintehdas in the municipality of Kemiönsaari.

– Wärtsilä was practically the only employer there at the time. Those who did not want to work at the factory went to sea. Like my brother, I headed to the seas to see and experience. A good portion of desire for adventures played a part in my decision.

On the ships, Nylund worked during various periods for a total of about 10 years as a sailor, petty officer and deck repairman, among others. Cargo, tanker and passenger ships as well as ro-ro ships became familiar.

– Ships have their own crew and lifestyle. In a way, it’s a small family that you get to know pretty well. I have good memories from those times, and I could go to sea again, but my papers are no longer valid, he laughs.

Nylund was also employed by the Defence Forces, for example in the Örö fort in various superviso-ry positions and as a boatman. He also spent one year in Kokkola at the army storage area. In his last position in the Finnish Defence Forces, Nylund worked as a petty officer on the minesweeper ”Hämeenmaa”.

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PETER NYLUND started as Port Supervisor in August 2008.

– At that time I was sailing on a merchant ship, and my current spouse is from Kokkola. I actually lived in Pansio so we had a long-distance relationship; it felt like being far away. Kokkola was looking for a Port Supervisor / responsible Port Supervisor, I applied and managed to get the position.

Port supervisors operate around the clock in three groups of two, a practice that emerged at the beginning of the Corona pandemic. This has made it possible to guarantee the safe working of the port for this team of employees, who have a key function for to the dayto-day vessel traffic.

– Port supervisors provide services to the vessels, such as mooring and unmooring and the sale of fresh water to ships. In addition, our tasks include spreading sand and clearing the snow in the port area, and we also do maintenance work, Nylund gives as examples.

As a foreman, his working days also include administrative tasks, such as planning work shifts and the holiday lists of the team.

There are many players in the port, and a smooth vessel traffic requires good cooperation from all players. Among other things, the berth location and the need for cranes will be determined before the ship arrives at the berth. As the size of the ships increases, the design of berths requires careful planning. Nylund participates as far as possible in the planning together with the Harbour Master and the Development Manager.

– There is also a lot of work being done with ship brokers and pilots. It’s important to be up to date at all times and to know what’s coming and going and what it takes to schedule it all.

IN OIL SPILL RESPONSE, port supervisors are the ones who rush to the scene to do initial damage control in the event of an accident.

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– The port has its own temporary floating barriers, and we regularly train how to isolate a ship, for example, to prevent the oil from spreading further. In the event of an accident, we are responsible for reporting the situation and alerting the emergency services.

After that, as many port supervisors as possible will be assembled, who depending on the situation will, for example, pull the barriers over the port basin or around the ship. We have developed the oil spill response to be as effective as possible, and we have also received good feedback from the authorities.

Occupational safety in the work of port supervisors is a primary concern.

– Especially when mooring the vessels we have to be very careful with the ropes. If a rope breaks during the mooring phase, the worker is, at worst, in mortal danger. For this reason, the job introduction emphasizes the safe performance of work, and, for example, safe positioning when mooring ships.

While living in southern Finland, Nylund spent his free time boating and fishing. Today these hobbies have been pushed into the background, at least for now.

– Nowadays, I spend much of my free time simply resting. As one gets older, one needs more time to recover.

Employee bicycle brings wellbeing to work and leisure The staff at Port of Kokkola has enthusiastically taken up the opportunity offered by the employer to acquire an employee bicycle. Many employees have taken personal climate action by replacing the car with a bicycle.

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he acquisition of employee bicycles in the workplace has been accelerated in Finland by a decision on tax-free employment bicycles taken two years ago.

Thanks to this, the bicycle benefit exempted from income tax of up to EUR 1,200 per year.

The Marketing Secretary, Alexandra Haapala, who bought an employee bicycle, is already an enthusiastic cyclist. Haapala, who is an active road cyclist has until now cycled about 5,000 kilometers per year.

She decided on an electric bicycle as the employee bicycle.

– The main reason for the purchase was that as a mother, I can combine time outdoors with a busy family life. Now that the price of petrol has risen a lot, this will mean a significant saving on fuel costs, she says.

On weekday mornings Alexandra Haapala will take her child to daycare, and then continue to work at the port office. This adds up to about 30 km cycled per day. The employee bicycle has been a pleasant way to travel also during family excursions.

– I’ve been really satisfied with the new bike, and due to the tax benefit the purchase price was quite affordable, said Haapala.

TAPIO LAMPINEN, Technical Manager at Port of Kokkola also decided on an electric-assisted bike. Like Haapala he is more than satisfied with his new ride.

– The spouse and I tried an electric mountain bike in Ruka and it immediately felt just right. I went to the shop on Monday to familiarise myself with the bikes, and bought it on Tuesday. Pedalling brings a smile. An electric bike is a fun ”toy”, stable and easy to ride, he says.

In addition to commuting, the bike is in frequent use during the family’s free time.

– The business commute adds up to 18 kms per day, and total kilometers since mid-September is up to 1,400. The car has now been in the garage for about a week, so fuel cost savings are considerable. I can warmly recommend this to others.

The benefits of commuting by cycling include, according to Lampinen, that the mornings are really cheerful and effective, which brings a good feeling to the workday.

– Because you dont get sweaty under the hat on an electric bike, there’s no need to take a shower at work in the morning. After the working day, one can pedal away, for example at 25-30 kph, when the electrical assistance is no longer used.

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CUSTOMER PRESENTATION

”Seamless collaboration Neste good operational c Kemira, Outokumpu and Neste were the first operators in Kokkola’s large-scale industrial area. The customer relationship between Neste and Port of Kokkola has been going since 1961, and vessels with Neste cargo have arrived and departed from quay number 7 in the Deep Port from that same year.

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uch has happened in just over six decades. In addition to the Deep Port, the Port has constructed the Silverstone Port to include both Neste’s oil pier and the adjacent Boliden pier, and today’s Neste Corporation still runs one of the company’s distribution and warehousing terminals in the large Kokkola Industrial Park.

Petri Lempiälä joined Neste in Kokkola in 2005 and has been the terminal manager from 2013. His predecessor as terminal manager was Jani Rentola, who currently is responsible for the operations of all of Neste’s terminals and maintenance warehouses in Finland, and is based in Kokkola.

– Neste collaborates extensively with the entire organization of the port. We have known each other for a long time. It helps to get to the point right away, and the sustained experience working together brings a certain kind of peace and stability, as everyone id familiar with the topics at hand. At the same time, people know how to look at things a little more broadly, Lempiälä and Rentola say.

INITIALLY, NESTE’S role was to supply fuels, primarily heavy fuel oil, to large-scale industrial plants and power plants. Operations expanded shortly thereafter with the starting up of fuel distribution by truck, enabling us to add transport fuels to the product range of the distribution network gas stations and other end customers.

Over the decades, Neste’s industrial customers have upgraded their equipment and introduced new energy sources. In addition, we added new transport fuels and other heating fuels to the supply. While the total annual volume passing through the port has stabilized at half a million tons in the 21st century, the number of product grades has increased.

– The largest product groups are middle distillates, which include light heating fuel oil and fossil and renewable diesel. The share of heavy fuel oil is now only marginal. The share of renewable fuels is growing all the time, Lempiälä and Rentola say. Both Neste MY Renewable Diesel™ and Neste My Renewable Fuel Oil are included in the distribution operations from Kokkola.

In addition to Kokkola, Neste has car distribution terminals in Porvoo, Naantali and Kemi. The customers of the Kokkola terminal are all domestic oil companies. Tanker deliveries cover primarily the regions of Vaasa, Seinäjoki, Jyväskylä, Kuopio and Oulu, as well

Petri Lempiälä (left) and Jani Rentola with the Neste terminal in the large Kokkola Industrial Park in the background.

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n guarantees capabilities”

the pipelines at the quay. When the Port renewed the road bridges in the demanding industrial surroundings, we managed to service and renew at the same time Neste’s pipelines going under the bridges, that is, we managed to combine two large-scale projects, Petri Lempiälä lists examples of joint projects.

Oil spill response is an important part of bigger picture. Also here, the parties have made significant inas Kainuu, but certain product groups are transported vestments, for example by acquiring necessary equipfrom Kokkola to the whole of Finland. ment. In addition to this, the Port and Neste regularly Petri Lempiälä says that fuels are also transported organize joint oil spill response exercises. by ship from Kokkola. Last year, mostly renewable Digitalisation offers opportunities for optimizing products were loaded on tankers from Kokkola to the shipping. As an example we may cite the exchange of Swedish market. The total of vessels calling the traffic information between Neste’s and port of Kokkola discharging or loading Neste the Port’s systems. It helps, among products amounts to about fifty ships a other things, the Port to plan the year. utilization of the quays, and reduces emissions from ships, SINCE THE BEGINNING, that is, for • The world’s leading producer of reas up-to-date quay situation more than 60 years, Neste has been newable aviation fuel and renewable die- information allows ships using Quay number 7 in the Deep sel, as well as renewable raw material solu- to optimize their speed in Port. tions for the polymer and chemical industries order to minimize wait– It has been a good place for us • Net sales in 2021, EUR 15.1 billion ing times. This way, fuel to operate, as the long history of • Comparable operating profit in 2021, EUR consumption is reduced, use proves. In addition to the quay, 1,342 million resulting in reduced emiswe have developed a number of • Approximately 4,900 employees in sions. other things together with the Port.

2021 – Neste currently also has The seamless collaboration guarantees ongoing development projects good operational capability for Neste. related to the terminal’s own opThe Port and Neste are both critical players erations. For example, we are renewin security of supply, so continuous development ing terminal automation, and on the enis also important, says Jani Rentola. vironmental side we have recently implemented – Initially, there were two pipelines, and in the early water treatment and drainage solutions. In addition, 1990s we built a third pipeline with the Port, adding a we are responding to changing legislation that imposfourth after the turn of the millennium. Since then, we es various requirements for oil ports, Lempiälä conhave in cooperation renewed all the cargo arms and tinues.

Neste Oyj

The tanker t/s Kiisla unloading at the familiar quay in the Deep Port.

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