Action Port – The newsletter of Port of Kokkola 2/2023

POR

PAR T

I E S 2 /2 0 2 3

PORT OF KOKKOLA

DT IIN 2T/ E2R 0E2 S1T

L KLOA OKKO OK FK

ED

TO

NA ENW SSA LTE ATM TE ARO FYO :NR

H LEN A Ä MS EHR Y M R OTSO SIUDS C

Jouni Ovaska:

Port investments also improve maintenance reliability Digitization in rail traffic New fuels for shipping

EDITORIAL

Quick response to customer needs M

ore than 70 companies are currently operating in Kokkola Industrial Park (KIP) and they directly employ 2,300 employees. The known investments in clean energy transition, which are currently worth around 2.5 billion euros, will bring an estimated 1,600 1,700 new jobs to the region. The port logistics services provided by the Port of Kokkola play an important role in the operations of KIP’s companies and in enabling a clean energy transition.

The Port of Kokkola’s success factors include customer-oriented service, competitive pricing, and proactive and long-term investments. I would, in particular like to emphasize the importance of long-term and systematic investments. We have for decades done something every year according to a prepared strategy, sometimes something bigger and sometimes smaller. Following this principle, we have in the last ten years taken very long development steps.

Port of Kokkola Newsletter for customers and interested parties CHIEF EDITOR: Torbjörn Witting EDITORIAL STAFF: Jorma Uusitalo LAYOUT: Olli Ilmanen/Creamedia PRINTED IN: Waasa Graphics Oy PHOTOS: Jorma Uusitalo Ulla Nisonen Port of Kokkola COVER PHOTO: The basic investments

by Port of Kokkola are a prerequisite för timely customer specific investments.

PHOTO: PORT OF KOKKOLA

When so-called basic investments are made steadily from year to year, it creates the conditions to also react quickly to customer needs related to the clean energy transition. This approach is a factor that particularly sets us apart from our competitors. Good examples of investments that serve the needs of Port of Kokkola’s customers are investments in the Silverstone Port and the handling capacity and efficiency of container traffic there.

Experiences show that the concept of long-term development has worked and is working extremely well in the Port of Kokkola. By continuing according to the same principle, we ensure that we will have the capabilities to serve the operators to be located in the new Kokkola South industrial area, when the time comes. At the same time, naturally, as a national port, we have the framework to act as a reliable and efficient partner for foreign ship transports for industrial units operating in central and northern Finland.

Elsewhere in this publication, you can read an interview with Jouni Ovaska, the new Chairman of the Transport and Communications Committee of the Finnish Parliament. He also highlights the importance of ports for Finland’s security of supply and security. It is good to remember that the investments made in the Port of Kokkola will at the same time strengthen our country’s security of supply in times of potential crises and disruptions.

TORBJÖRN WITTING CEO Port of Kokkola Ltd.

ACTION PORT 2/2023

A digital snapshot facilitates the port’s rail traffic Rail transport is one important part of efficient port logistics. Port of Kokkola promotes the smooth running of rail traffic on its private tracks with a new system, which allows information related to traffic on the tracks to be collected into a real-time digital snapshot.

P

ort of Kokkola wished to find an answer to the question of how to create a real-time situational picture of the traffic on the private tracks in the port area and to ensure a smooth flow of information between the companies working in the port. The solution was the ProX-Rail situational image system designed for private railways, which is currently used by five operators in the Port of Kokkola.

– In the fall of 2020, we took part in the national preliminary study launched by Proxion Oy to consider what kind of system would provide the owners of the private railway network with sufficient information about what is happening on the tracks, says Jyrki Roukala, the Development Manager of Port of Kokkola.

The requirements of the ports and industry that participated in the preliminary study differed quite a lot. Since Kokkola had a clear vision of what is required of the system and which functions are sufficient, the ProX-Rail system was started to be built only with the Port of Kokkola. It was quickly ready, and the system was put into use at the beginning of 2023.

The rail network in the port area of Kokkola forms a typical multi-stakeholder environment, where a common real-time situational picture improves both safety and efficient port logistics.

REAL-TIME INFORMATION on track capacity reservations, service place reservations and maintenance reservations is updated in the digital situation picture.

– This is a really big improvement compared to before, when communication between different operators took place only via e-mails and telephone. The overall situation was difficult to manage, and there was a lot of waiting that ate away at the efficiency, which was due to the insufficient flow of information and the different situational picture of the operators. Now information can be found through one system for all operators, says Jyrki Roukala. Through interfaces, information from the system can be shared with the stakeholder environment and vice versa.

– ProX-Rail is designed to serve all actors in a multi-actor environment, from the port’s operational staff to operators, maintenance workers, and the rail network operator. It is important that a clear situational picture of the region’s logistics is available, and traffic can be directed efficiently and safely, emphasizes Markus Jaatinen, CEO of Proxion Tech Oy, which supplied the ProX-Rail system.

In Finland, the rail network consists of two parts, one of which is the state rail network maintained by the Finnish Transport Infrastructure Agency. The traffic there is managed by Fintraffic. In addition to this, there are approximately 120 license holders of private railways, such as Kokkola Satama Oy. Often, rail transports leave for their destination on private tracks, then travel on the state rail network to finally end up on private tracks again.

– It would be really important for private railways in Finland to reach a common national system. A national situational picture would help significantly, for example, in various exceptional situations, but it would also make it easier to plan operations in everyday life, says Jyrki Roukala.

ACTION PORT 2/2023

03

Versatile port services at just the right time The development of port infrastructure is a long-distance race, where basic investments and customer investments go hand in hand. Regular basic investments ensures that the Port of Kokkola is able to produce the port logistics services needed by current and new customers on a very fast schedule.

W

hen the CEO of Port of Kokkola, Torbjörn Witting, presents Port of Kokkola in various contexts, the phrase ”long-term development” is often repeated in his speech. There is a reason for this, because the growth of the port, which will soon turn 200 years old, to its current dimensions, did not happen in an instant or by chance. Instead, it has required foresight and a systematic approach.

It will be possible to enjoy the fruits of long-term development again in the coming years, because clean transition investments worth billions of euros are planned for Kokkola. The port invariably plays its own important role in these projects. When the companies do pre-surveys of the locations where they might be located, one of the first questions is whether there is a port.

– We are fully prepared to accept all newcomers to the clean energy transition, because we have built a framework for new customer investments with far-reaching basic investments, says Torbjörn Witting.

04

A GOOD EXAMPLE of building a framework is the deepening of the channel and the deepening of the port basin, which were brought into use in 2020, and the utilization of the recycled mass created in that connection.

The dredging resulted in a total of 2.4 million cubic meters of earth, which the Port used to build new port areas. About 20 hectares of port areas were built in bulk at Silverstone Port, which is now being developed into Kokkola’s second deep harbour to serve, for example, container transport and the handling of light bulk and wind turbine components.

Basic investments are sometimes large, sometimes slightly smaller. It is just as essential that they are done regularly and in accordance with the prepared strategy.

– On the north side of the Deep Port, embankments were already built in the mid-1990s, after which it was the turn of filling. That was already a long time ago, and we are now negotiating with several operators

ACTION PORT 2/2023

PICTURE: PORT OF KOKKOLA

about solutions for warehouse terminals to be located in that area, which are a typical example of customer investments. This is a good example of the long-term approach, according to which we operate at the port.

For customers, all of the above means that they have a ready-made infrastructure that can be put into use quickly, and at the right time, says Witting.

In addition to the Deep Port and Silverstone Port, the Port of Kokkola has a new port field in the General Port.

– There are areas that clean energy transition operators can use for logistics and storage needs. This contributes to the fact that the T/Chem planned area of Kokkola Industrial Park can be used efficiently for production activities.

THE ESSENTIAL thing with investments, according to Witting, is that basic investments and customer investments go hand in hand.

– If only basic investments were made, it would

Observation picture of the development plan related to clean transition port logistics in Silverstone Port and the Deep Port.

only be one part of the whole. Customized customer investments are what enable the productive business of Kokkola Satama Oy. One does not exist without the other, he emphasizes.

According to Witting, the port has followed this principle of balance with great success for more than 40 years.

– We pay a lot of attention to layout design and implement things systematically. When you make even small investments every year, you can achieve an amazing amount in ten years, and it is also a cost-effective way of doing things. Even though we build and do things with a strong lead, the thought sometimes comes to mind, whether we have done enough, he admits.

ACTION PORT 2/2023

05

”Port investments are al in security of supply” - Shipping is a significant part of Finland’s exports and imports, and the role of the ports is absolutely central to our country’s security of supply. When the owners invest long-term in the development of the ports, they at the same time take on a part of the social responsibility for the supply security of the whole of Finland, emphasizes Jouni Ovaska (Centre Party), the new chairman of the Parliament’s Transport and Communications Committee.

R

ussia’s war of aggression against Ukraine brought security of supply and security to the fore in a completely new way, not only in Finland, but also in other parts of Europe. According to Jouni Ovaska, one of the most important issues at the European level in the next few years is how to ensure the movement of goods in Europe, and above all, from a national perspective in Finland and around the Baltic Sea. – Even if it sounds boring when repeated, Finland is an island. That is why maritime transport has such an

important position, and while we are talking about our country’s shipping, we are also talking about safety. We must always take into account what exceptional circumstances may cause us, and how we must prepare for various disruption situations.

In addition to the ports, Ovaska connects the entire transport infrastructure to the same entity.

– In general, we have to keep the roads and other channels in such a condition that the goods can be transported to and from the ports. Geographically, Finland’s location is such that you have to see a step further in these matters and prepare for it if something unfortunate happens.

According to him, security of supply has traditionally been valued and considered important in Finland.

Ovaska also reminds that security of supply applies not only to goods, but also to foodstuffs and taking care of one’s own food production. This places a spe-

– The Port’s investments do not necessarily show up as a financial return right away.

CHAIRMAN OF TRANSPORT AND COMMUNICATIONS COMMITTEE JOUNI OVASKA

06

ACTION PORT 2/2023

lso investments Jouni Ovaska hopes for direct connections and an uncomplicated exchange of messages between the committee he leads and the port operators.

cial responsibility on political decision-makers both in national decision-making and at the municipal level.

– For example, investments in the development of ports do not necessarily bring an income stream right away. However, it is good to remember that all investments in maintenance reliability are investments in our safety.

ACCORDING to Jouni Ovaska, what kind of role do ports play in the new government program that was recently agreed and sealed?

– In terms of basic principles, the entries in Prime Minister Petteri Orpo’s government program are positive for ports. The program wants to secure shipping and a comprehensive port network, which is already a big entry in itself. Maintenance reliability is also mentioned. The halving of fairway dues already started during Juha Sipilä’s government and it would be good if the fairway dues were halved permanently. In summary, it can be noted that the government program creates the basis for the development of ports and continues the positive line that has been followed in Finland in recent years.

EU-level decision-making is also important for the development of Finnish ports. Last spring, positive news came from Brussels, according to which the

port of Kokkola is a strong candidate for the TEN-T core network in the Europe-wide TEN-T transport network.

– Being part of the TEN-T network improves funding opportunities. On the other hand, it also sets requirements for port owners to take care of the available infrastructure. Nationally, we also have a national Liikenne 12 traffic system plan, which is drawn up for each government term. Among other things, it considers future funding models, such as how it would be possible to utilize state funding versus port co-financing when planning fairway projects.

According to Jouni Ovaska, ports will also play an important role in enabling the green transition in the future, and digitalization and maritime automation offer ports a lot of opportunities to streamline their own operations.

Most of Finland’s ports are municipally owned, like the Port of Kokkola. Ovaska participates in the decision-making of his hometown Tampere, for example as a city councillor, and therefore he knows how to look at, for example, the development of ports from the owner’s point of view.

– I think it is important for the owners to see the benefit and value of the port more broadly than only from the point of view of their own municipality. This is because ports have both an important regional economic and national significance. Owning a port involves risks and incurs costs, but the port also creates financial returns and the fact that, as the owner, the municipality carries social responsibility in a valuable way.

– In the case of ports, the spirit of the game is that the investments in the port do not necessarily show an immediate financial return, but rather long-term development. As a municipal decision-maker, I know that it is quite often difficult to assess from the operating economy point of view what can be afforded at any given time. In the case of ports, the effects of investments in any case extend over decades, Jouni Ovaska reminds.

ACTION PORT 2/2023

07

International shipping is moving to new, more sustainable fuel solutions to mitigate climate change.

A billion-euro e-methanol plant is being planned in Kokkola, the end product of which could replace the diesel and heavy fuel oil currently used by ships.

Port of Kokkola’s port infrastructure plays an important role in the project.

A

ccording to the International Maritime Organization’s (IMO) current greenhouse gas strategy, the goal of global shipping is to reduce emissions by 50 percent by 2050.

There are several low-emission maritime fuel alternatives, such as hydrogen, ammonia, methanol and nuclear power. Some of the shipping companies have already made strategic plans for future fuels, and for example the major shipping company Maersk decided to go for green methanol. Maersk’s vision of green methanol was one reason which encouraged the initiators of the planned e methanol plant in Kokkola to move the project forward.

THE PROJECT called Vanadis Fuels will be located in the area of Kokkola Industrial Park (KIP). Production is scheduled to run at full capacity in 2029 when the facility will produce low-carbon electric fuels (e-fu-

els) for industry and maritime needs. 400,000 tons of the main product, that is green methanol, will be produced annually.

Aliceco Energy Ltd. from Pietarsaari and TEH2, a subsidiary of the French energy giant Total Eren, are behind the project. Vanadis Fuels, on the other hand, is a project company jointly owned by the parties while Aliceco Energy will develop and organize the project in Finland. Viktor Ekman, CEO of Aliceco Energy, sees huge market potential for the plant’s main product.

– The world demand for green methanol is growing strongly. In the discussions with Maersk, it turned out that in the future they will have a big need for green methanol in their own ships, and that’s why they became interested in our project. According to Maersk’s representatives, their annual need will be 20 million tons of methanol, Ekman states.

He says he is particularly proud of the advanced and material efficient technology in the production plant, where Stefan Storholm from Pietarsaari and Clas-Eirik Strand from Vaasa, both experienced experts in the energy sector, have played a big role in the development of it.

– In the process, green carbon dioxide is recovered from Kokkola Energia’s biomass power plant without

Shipping is moving to ne

A billion-euro e methanol investment is plann

A big transition phase is going on in shipping, when new fuel solutions are introduced in ships.

08

ACTION PORT 2/2023

the use of large amounts of chemicals. During the biomass’ combustion phase, oxygen will be used instead of air. This is an environmentally friendly solution, which will lower the investment costs of the production plant and improve the cost efficiency of the production. This oxygen combustion solution will now be used for the first time on a commercial scale. A total of three patents have been sought for the technology, says Viktor Ekman.

THE COST ESTIMATE for the project is at least 1.5 billion euros. Viktor Ekman estimates that the plant will employ around one hundred people in the production phase and 500–600 people in the construction phase.

The numbers are big, but according to Ekman, the purpose has been specifically to think big from the start.

– We started with a large-scale project because the goal is to get big players like Maersk and Total Eren as partners. Then we have a better chance to ensure the profitability of the operation, and in general to get big players interested in the project. Of course, the market is also bigger.

– We soon noticed that there is a lot of caution towards such big projects in Finland. People wondered why we consider that the size range had to be so big and it was suggested that we should test the technology on

a small scale with less money. But money seeks money, and such a large facility, when realized, is something that can move the Finnish economy forward.

For Aliceco, Total Eren is a preferred partner in many ways: the company is big, it had the courage to take up the presented technology, Total Eren was also interested in the product, and the company’s strong balance sheet is no small thing.

– Despite Total Eren having solid resources, there is the normal detailed planning and feasibility process to go through before the final investment decision is made. In any case, one of the things that made Total Eren interested in us was precisely the scale; in fact, the scale of the planned facility in Kokkola was almost too small for them.

Ekman praises Kokkola Industrial Park for offering an excellent setting for an e-methanol plant.

– Both the port and the infrastructure related to port logistics, as well as the goods needed by the production plant, are ready here. With Kokkola Energia, we immediately got into a good discussion about collaboration.

Aliceco has applied for investment support of 50 million euros from the Ministry of Employment and the Economy for the project. The process of Environmental Impact Assessment (EIA) of the project will start this autumn.

ew fuels

ned in Kokkola

Viktor Ekman with Port of Kokkola’s Deep Port and Silverstone Port, as well as Kokkola Energia’s Power power plant, in the background,

ACTION PORT 2/2023

09

MY JOB

L

ike the work of marketing professionals in general, a large part of Alexandra Haapala’s work is related to Port of Kokkola’s brand in one way or another. A brand can be defined, for example, as the image that others have of the company, its services and quality.

Today, the first impression of a company is often based on the company’s homepage.

– The homepage serves as the company’s business card to the outside world. It is really important that they are modern in functionality and content, and visually interesting. Updating the homepage is one of the biggest marketing-related projects that have been implemented at the Port during my time, says Haapala.

Together with the CEO, the marketing secretary ensures that the Port’s brand is consistent and managed, and that it is developed. In practice, this means, among other things, a consistent look in terms of colours and texts in both printed marketing materials and digital channels.

One significant step in the development of Port of Kokkola’s marketing was the decision to start publishing the Action Port stakeholder publication in several languages. Most of the readers get Action Port as a

digital version, but the publication is also distributed in print to the Port’s neighbourhood.

– With Action Port, we are able to tell in more detail customers and other stakeholders about the Port’s news. As, for example, outsiders cannot, for security reasons, enter the port area, it is important that we actively communicate to the outside world, because a lot of important things happen in the port.

LinkedIn, on the other hand, is the social media channel where the Port publishes its interesting current news. The Port started on LinkedIn in the spring of 2020, and has currently around 1,600 followers.

– That is, in comparison with other Finnish ports, a really good number of followers, and it tells about the interest that different parties have in us. There are followers from all over the world.

Port of Kokkola is one of the pioneers in digitalization among Finnish ports, and Alexandra Haapala is looking forward to the new things artificial intelligence will bring to both marketing and other functions of the port.

– Although artificial intelligence will certainly make work easier and bring more efficiency, humans will

Alexandra Haapala’s job description includes, in addition to her work as marketing secretary, invoicing and stock monitoring. In the background, the warehouse areain the General Port and the only All Weather Terminal (AWT) in the Nordic countries.

The marketing secretary involved in many things Digitalization has changed and is changing marketing to a historic extent. The working day of Alexandra Haapala, Port of Kokkola’s Marketing Secretary is particularly varied and interesting because of the versatility of the work. In the Port’s efficient organization, the marketing secretary gets to do more than just marketing work.

10

ACTION PORT 2/2023

continue to have their own role. A port is a large functional entity, and people are needed to understand and manage it.

ALEXANDRA HAAPALA has been working for the Port on a permanent basis since the beginning of 2015. The operation of the Port had become familiar before that, when Haapala first completed the final internship related to her BA in Business & Administration at the Port and after that she stayed for summer work.

– It’s an international work environment, and this is a real vantage point into the logistics crossroads, which the operations of the port constitute. At the same time, I get to see up close the huge variety of logistical service packages there are available to customers. In addition, the international aspect inspires me to study and use foreign languages, and at the same time the knowledge of different cultures increases, Haapala states, and especially praises the advantage of visiting trade fairs.

– You never know in advance who you might meet at the fair, and what kind of follow-up discussions and

new customer relationships the meetings can lead to.

It’s also important to meet current customers at the fair, and it’s nice to exchange news on current topics with colleagues.

According to Haapala, the rewarding part of a marketing secretary’s work is, for example, a completed project or a solution related to the visual appearance of the marketing material, which turns out to be successful after printing. The seascape that opens up from the port office also offers a sense of well-being.

– A very diverse birdlife lives in the waters around the harbour, and during the day you can often see dozens of different bird species. In addition to birds, a seal may also appear sometimes.

The Port Kokkola harbour will soon have 200 years of operation behind it. Thanks to its long history, Haapala expects a lot from the future as well.

– In my case, it means that in order to develop in my work, I will start my studies in the fall in a program leading to a master’s degree. The focus of my studies are business economics and management, which I have always been interested in.

is

FEM Levi

Welcome to our stand C14 31 October - 2 November 2023!

Welcome to our stand G75 28 - 30 November 2023!

ACTION PORT 2/2023

11