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THE NETWORK EXPANDS

INTO THE WORLD

To provide local expertise, Steveco opens up new offices in the Baltic states and Sweden.

Steveco offers first-rate logistics and stevedoring services for a wide variety of needs.

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TRADE

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EDITION

OCTOBER 2014

MEET THE TEAM Imre Kßtt and his colleagues serve Steveco’s customers around the Baltic.

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text by Thomas Freundlich photos

by Juha Metso and Shutterstock

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teveco Logistics is a full-service global logistics provider. Steveco’s services cover all customs clearance, freight forwarding, transport, warehousing and handling services. Steveco handles the entire transport chain from the manufacturer to the final consignee, depending on the client’s needs.

Steveco has been involved in transit traffic between Finland and the CIS countries since 1989. The company’s long-term experience guarantees reliable deliveries, and all logistics services are available from a single source. To further strengthen its service offering, Steveco has recently expanded its representation network, and the company now has offices in Tallinn, Estonia; Riga, Latvia; Klaipėda, Lithuania; and Malmö, Sweden.

“As a result of this growth, we are now able to offer full logistics services to our customers in all of the Baltic countries as well as Sweden. For example, previously we only had a sales representative in Riga,” says Tomi Rautio, Senior Vice President, Steveco Logistics. “We have also expanded the capabilities of our local subsidiary in Russia with new personnel and added operational resources.”

A major part of Steveco’s logistics business has to do with handling import, export and transit cargo to and from Russia as well as the CIS states.

With this in mind, Sweden may sound like a surprising direction for the company to expand its representation network.

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/&5803, “In fact, Sweden is important for both us and our customers. It is also a key location for forest and other heavy industries, so many of our existing and potential customers also operate there,” Tomi Rautio notes.

LOCAL KNOWLEDGE

Ultimately, it’s all about building a full-service logistics network. Poland and Germany are active routes for southbound exports, while Finland and the Baltics provide alternate options for shipments from Sweden. Location aside, one thing is constant: the need for local expertise.

One of Steveco’s special assets is extensive knowledge of Russia and Russian business practices. Steveco is one of the leading forwarding companies in logistics between Finland and Russia as well as other CIS countries. Through its local subsidiary Steveco LLC, Steveco provides comprehensive logistics services in Russia, from warehousing and forwarding to road, rail and inland waterway transportation to and from Russia.

“It’s crucial to have people on the ground who not only know the local conditions inside out, but can also handle the full range of services required by our customers,” says Rautio. “Our customers are always looking for the best routes for their cargo and we are there for them, whatever the country and destination.”

STEVECO EXPANDS ITS SERVICE OFFERING IN THE BALTIC STATES AND SWEDEN. PAGES

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October 2014

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THERE IS NO SHIPMENT OR DESTINATION THAT STEVECO CAN’T HANDLE. At the moment, one of the key questions for shippers is the EU sulphur directive. “Maritime transport will remain a major import and export pathway for the foreseeable future. However, if the directive has a significant impact on maritime transport costs, shippers will likely choose routes that minimise sea transport and favour ground and rail shipping. So we are always ready to find the optimal alternatives for the customer’s needs,” Rautio notes.

FULL SERVICE

Over the last years, Steveco has evolved from a traditional stevedoring company to an end-to-end logistics provider.

Steveco’s service repertoire has also grown rapidly. Previously known primarily as a stevedore for the forest industry, the company can now offer a full global agent network for any cargo and destination. Services range from transglobal container shipping and storage to customs clearance services, export forwarding, documentation and ground delivery to the final recipient.

Steveco’s customers operate in a number of industrial and commercial sectors. The company’s import forwarding

Steveco’s advantage is the capacity to provide a seamless service offering that spans the entire logistics chain.

A major part of Steveco’s logistics business has to do with handling import, export and transit cargo to and from Russia as well as the CIS states.

covers customs clearance for non-EU goods, T-1 customs documentation, advising on shipments, transport arrangements and statistical services for EU goods. The company provides warehousing services in Finland and now also in the Baltic countries and Sweden, either at its own warehouses or with local partners.

“The demand for import services has been growing strongly,” Tomi Rautio notes. “For example, we routinely import entire shiploads of steel stock and railway track, while also taking care of customs clearance for the shipments.”

Some of the most imposing pieces of equipment imported by Steveco Logistics include components of wind turbines. “Our customers have been happy to entrust us with these shipments since we can handle the customs clearance, even for such extremely high-value items. We have been handling quite a few of these shipments lately, and routinely manage similar projects for other logistics companies as well,” says Rautio.

LOOKING EASTWARD

The Baltics, Sweden, Russia and Finland form one of the key logistics networks in Europe. A typical freight itinerary might include ferry transport from Sweden to Latvia 4

October 2014

imports grew every year, from some 2.3 million tonnes in 2003, to 3.9 million tonnes in 2008. Then, virtually overnight, in 2009 imports collapsed to 1.6 million tonnes due to the onset of a recession in the Russian economy.

By 2013, imports were rebounding slowly, but were still at pre-2003 levels.

“It’s important to look at this from a wider historical perspective,” says Marja Kuisma. “Over the years, Russian international trade has gone through many difficult periods at regular intervals. The economy will eventually recover.”

“Looking three to five years ahead, I’m certain the situation will again be very different,” adds Tomi Rautio. “In today’s global world, it’s almost inconceivable that Russia could become an economically isolated market. There is simply too much demand for imported consumer goods.”

More than ever, local expertise is essential. “In the Baltics, and especially in Russia it’s impossible to accomplish anything without a trusted local partner who can take care of everything. That is just the basic requirement of doing business in these markets,” Rautio says.

NEW PATHWAYS

or Lithuania, where the shipment may be either stored at a warehouse or forwarded onwards. “It’s up to the customer whether they prefer to have their warehouse or ‘hub’ in Finland, the Baltics or elsewhere in Europe,” Rautio says.

The recent turmoil in Ukraine and the Crimea, along with the ensuing EU sanctions imposed on Russia have impacted exporters and importers.

“The Ukraine crisis is mainly seen in payment difficulties between buyers and sellers,” says Marja Kuisma, Senior Advisor, Steveco Logistics. “This, of course, affects the logistics chain as well.”

However, the main challenges of east-west trade relations and freight logistics are likely to unfold on a longer timescale. “The repercussions of the Ukraine situation sometimes tend to be exaggerated in the media,” says Tomi Rautio. “In fact, the major issue – and one that we and our customers have been dealing with – is the ongoing recession of the Russian economy and the weak exchange rate of the rouble. Ukraine and the Crimea are just the latest manifestation of this larger problem.”

A telling indicator in the historical records is the total volume of eastbound transit cargo – mainly cars, electronics and other consumer goods – transported via Finland to Russia. In the first decade of the new millennium, transit

Rautio notes that tough economic times can also provide opportunities for enterprising companies. “During an economic upswing, everyone just wants to keep the status quo. Nobody is interested in changing anything. In contrast, economically difficult periods can be a great time to re-evaluate one’s offering and find new routes to market.

When the economy eventually recovers, you will be poised to exploit those opportunities,” Rautio notes.

Steveco’s advantage is the capacity to provide a seamless service offering that spans the entire logistics chain. The company also works often with other freight companies and can handle transport to and from any terminal – not just its own.

“For example, very few logistics companies can also offer stevedoring of heavy cargo as well as container handling,” Tomi Rautio says. “For multimodal transport we have extensive expertise in railway cargo, especially to and from Russia.”

Put simply, there is no shipment or destination that Steveco can’t handle. “Whether the cargo arrives by ship, truck or rail, we – and our recently extended partner network – will be there to ensure it makes its final destination smoothly,” says Marja Kuisma. For shippers operating in or through Russia, Estonia, Latvia, Lithuania or Sweden, this means new options, new routes and new possibilities to find the best solution for their individual transport needs.

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NETWORK text by Martti Linna photos by Johannes Wiehn FACT

Igor Zhigora, Russia Igor Zhigora, Managing Director of Steveco LLC, is based in Moscow. Zhigora began his logistics career in 1991, the year The Soviet Union once again became Russia. “Practically everything has changed since then. The market has developed, clients have become more professional and consumers are more quality conscious. Steveco is well equipped to serve its clients. The location of the Port of HaminaKotka is logistically optimal, prices are competitive and the border formalities between Finland and Russia are handled smoothly.”

FACT

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FACT

Maria Emelyanova, Russia

Peter Langerbeck, Sweden

Maria Emelyanova serves Steveco’s clients from St. Petersburg. Emelyanova enjoys her job as the Operations Director of Steveco LLC. “The shipping rates to Russia via Finland are competitive.

I regularly go to Finland for holidays, too.”

Peter Langerbeck has an office in Malmö, Sweden – or more accurately, as he says, in the smart phone he carries in his pocket. Langerbeck started working in logistics back in 1976. “Sweden is a significant market for logistics services. Steveco opens up new opportunities for our customers in the Baltic region. Steveco’s strengths lie in strong technological expertise and experience of eastbound traffic.”

October 2014

St. Petersburg Tallinn

Moscow Malmö

FACT

FACT

Jevgenia Kim, Estonia

Imre Kütt, Estonia

Jevgenia Kim brings new capabilities and ideas to Steveco. Working as the Country Manager in Tallinn, Estonia, Kim joined Steveco earlier this year. “This is a fascinating industry. Every day brings something new and I’m always meeting interesting people.”

Imre Kütt works as a Steveco Logistics Sales Representative in Tallinn, Estonia. Kütt has worked in logistics for five years. “Steveco is a big and well-known player in the market and continues to develop strongly. The Estonian market is small, but our shared border with Russia presents a huge opportunity for us.”

October 2014

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