Satama Fair Edition 2022

THE WAR

VERSITILE

AIMING HIGH FOR

THE BEST TRANSPORT

IN UKRAINE

PULP LOGISTICS

LOWER EMISSIONS

SOLUTIONS

A new twist in the lumber market

Steveco offers all types of pulp logistics

Customers expect green logistics

Steveco’s road transport operations are expanding

S T E V E C O ’ S

C U S T O M E R

STATE-OF-THE-ART

ELECTRIC BOATS Transporting customised products requires special expertise PAGE 18

M A G A Z I N E

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1/2022 CHANGE IN THE PULP MARKET

Pulp transport is centralised at Steveco’s Mussalo terminal.

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DEPOT SERVICES Depot services is an essential part of Steveco’s operations and service package.

DEMAND FOR ELECTRIC BOATS IS GROWING Q Yacht’s state-of-the-art electric boats are exported at an accelerating rate.

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Editorial

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News

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Corporate responsibility

15 Transport solution 24 Depot services 26 Sales team

EDITORIAL 1/2022

THE WINDS OF CHANGE TURN STORMY THE COVID PANDEMIC, which has hit the industry surprisingly hard, is now showing the first signs of abating. Of course, we still have exceptionally many absences due to Covid, which means severe headaches in all ports. As if that weren’t enough, a real storm started blowing from the east. We have all followed the events in Ukraine in horror, and I fully understand that for many, just watching the news is becoming too much to bear.

Our difficulties are nothing compared to the suffering of civilians in Ukraine, although of course, the war and the related sanctions also affect our business, and that of our customers in particular. We have not been involved in bulk transit for years, and the container transit through Finland pretty much dried up years ago. Still, the omission of even this small share contributes to the imbalance on the Finnish route.

The entire logistics sector has been particularly hard hit by the war in the form of dramatically rising fuel prices. No one could have anticipated such a cost increase and, as a result, fuel surcharges have also had to be levied on port operations, where cost increases have traditionally been quite predictable and thus manageable.

On a positive note, perhaps this will finally accelerate the transition away from fossil fuels in ports as well. After all, the technical solutions already

exist for heavy port machines. The rapid transition has simply been hampered by money.

The first decent-scale solar power plant has just been commissioned at the Kotka container terminal. It is a pity that we were not the first, but fortunately, the gold medal in this race went to our subcontractor, who now has a solar power plant to generate electricity on the roofs of their warehouses tailored to handle forest industry products. Many consider solar power plants to be little more than just dabbling in the green transition, but this plant alone has a peak capacity of 120 kWp and a planned annual output of 110 MWh. So not quite just dabbling over just 780 square metres. We have a few more hundred thousand square metres of sunny roof space alone!

I wish our readers a happy summer!

TAPIO MATTILA Senior Vice President Marketing and Sales Steveco

PHOTO: OLLI URPELA

Publisher: Steveco Oy, Kirkkokatu 1, P.O.Box 44, 48101 Kotka, Finland Tel. +358 5 23231 Editor-in-chief: Tapio Mattila Editorial board: Elina Harjama, Markus Myllylä, Mia Brunila, Eija Suntio, Vesa-Heikki Renlund Printing house: Painokotka Oy Paper: MultiArt Silk Edition: 200 ISSN 1456-212X Cover image: Q Yachts/Altti Heinilä Address change: www.steveco.fi or eija.suntio@steveco.fi

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NEWS

Slot booking for better port services THE AIM OF THE truck appointment system TASS (Truck Appointment System Steveco) is to prevent congestion at unloading sites and the resulting scheduling problems. Truck slotting was deployed in February in Hietanen. At Mussalo’s MC4 warehouse, slot booking was introduced at the beginning of April, and the goal is to gradually expand it to piece goods trucks in all Mussalo terminals by the autumn of this year.

“In the TASS system, the haulier reserves time windows for trucks picking up and delivering cargo within their arrival and when they are served. We can shorten the time the trucks stay in the port and shorten their turnaround times. Our service will improve when we know the arri-

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Hauliers can schedule their other service needs more efficiently when they know when the truck will be free to move on to the next destination. val times of the trucks because then we will have a better opportunity to optimise the resources for unloading,” says Heikki Jääskeläinen, Development Director of Steveco.

Steveco’s customer haulier is not required to purchase any application to use the slot booking system. All they have to do is to log in to the

online TASS system, select the terminal, pick the appropriate time window, and book it. A message will be sent to the driver with information about the booking. Once the truck is loaded, the driver opens the application on their mobile phone and confirms that the journey has started. When the truck is on the road, the Steveco terminal can monitor how the schedule is followed.

For the haulier, slot booking means faster operations as the unloading equipment will be ready upon arrival.

Unnecessary waiting times in the congested unloading area of the port are reduced. The change also means that hauliers can schedule their other service needs more efficiently when they know when the truck will be free to move on to the next destination.

Container train connection to China now also in Kotka SA-TU LOGISTICS is a company specializing in logistics services, offering its customers transport services and goods handling in Finland. Steveco has been cooperating with SA-TU Logistics in Vuosaari port since 2020 in connection with the handling of container trains to China. That cooperation has now expanded to Kotka as well.

The cooperation began when SATU Logistics started operating a new Chinese container train connection to Vuosaari port and required a train container operator. Steveco was a natural choice because Steveco’s Vuosaari port terminal has two long tracks for trains. Steveco lifts the containers from the wagons to the field and transfers them with straddle carriers to the SATU Logistics area or terminal to await shipment.

This winter that cooperation expanded operations to Kotka. “The first train from China was handled in Kotka in February. The containers were unloaded at the terminal and from there onto trucks or transferred to the Mussalo warehouse area for reloading,” says Vesa-Heikki Renlund, Steveco’s Sales Director.

SA-TU Logistics does not currently

have its own staff in Kotka. Thanks to advanced electronic services and digitalization, SA-TU is able to operate the trains from Vuosaari. Steveco is responsible for the physical handling of the containers.

“Cooperation with SA-TU Logistics is a solid and open working relationship. The most important features are a pair of tracks going directly to the port, suitable equipment at the terminal, a good location close to warehouses and a short transfer distance. SA-TU Logistics can also take

advantage of Steveco’s Move Manager Service, through which they can order unit transfers from us between warehouses and terminals within the port,” says Renlund.

There is one train a week in Vuosaari. The plan for the start-up phase in Kotka was to run two trains a month, but the situation is now fluid due to sanctions related to Russia. Import trains from China to Europe can continue to operate, but export traffic will stop if the products are subject to EU sanctions.

Specialised transport trailers for Kotkamills KOTKAMILLSILLÄ AND STEVECO have a long-term agreement for handling and storage of Kotkamills’ products in Mussalo and Hietanen, from where they continue to their destination by road and sea. In February, that cooperation deepened further when Steveco took over transport from the plant to the ports. For this purpose, Steveco has invested in trailers tailored specifically to handle these transports.

What is special about the 15.5 metre long trailers is that they feature a

completely liftable box body, as well as collapsible sides that ensure the paper rolls and cardboard packages can be safely loaded onto the trailers. The trailers also have a special cargosecuring cover inside. The shipments run daily, seven days a week, which means a great many loading operations each day. Therefore, securing the cargo must be handled nimbly and safely.

“The trailer has a customised automatic securing cover. The cover is tightened to the specified force by

simply pressing a button, and the device automatically monitors the tightness even during transport. This makes the process more efficient compared to traditional securing with, for example, straps,” says Ville Huovila, Steveco’s logistics manager.

“This new method of transportation has made the process efficient and easy for all parties. The trailers are tailor-made for this cooperative venture.

There is nothing comparable on the roads today – they are unique.”

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NEWS

Solar energy shines at the port In spring, the port of Mussalo in Kotka in southern Finland published great environmental news: TMP Logistics, a provider of logistics services at the port, has set up its own solar power plant.

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The daily amount of energy produced by the sun would be enough to heat 10,000 litres of hot water.

He also points out that the company is part of the export industry network and wants to be a model of responsible partnership for quality logistics.

POWER PLANT EXPANSION

Prior to the TMP plant, not a single solar power generation facility existed at logistics terminals in the Kotka– Hamina region.

“I hope that our example will boost development,” Pasi says.

He is already thinking about expanding the power plant and increasing the use of renewable energy to make the company fully self-sufficient in electricity.

“Self-sufficiency is especially important in today’s world situation.

The more concentrated your operations are in your own hands, the better you will succeed.”

In practice, however, the expansion would mean that the electricity distribution company would have to increase its capacity; and at the moment, the electrical transformers are too small to handle more solar energy input.

TMP Logistics could spread solar panels over a total area of 24,000 square metres which would significantly increase its electricity generation capacity.

Pasi hopes that all of Finnish society, including lay people, will work to promote the use of solar power.

BURNISHING THE PORT’S IMAGE

Pasi points out that the benefits of using solar energy in the terminal are already visible. When internal combustion engines are replaced with electric engines, the air and the products handled become cleaner. Another benefit – work itself becomes more enjoyable.

Pasi also believes that solar power will be the best branding for the entire harbour.

PHOTO: SAKARI SAKSA VISTAFILMS OY

THE NEW SOLAR POWER PLANT at TMP Logistics’ terminal will generate electricity for lighting and powering the company’s forklifts.

Tero Pasi, CEO of TMP Logistics, says that the company’s intention is to become as self-sufficient as possible.

The pursuit of carbon neutrality is not a new goal for the company: the lighting of the terminal, for example, was earlier replaced with LED lights that are activated by motion detectors.

Pasi has nothing but praise for the new solar power plant. The panels spread across about 700 square metres and provide 10 megawatt-hours of energy per month.

He says that the daily amount of energy produced by the sun would be enough to heat 10,000 litres of hot water or power an electric car for 3,000 kilometres. An electrically-powered sauna could be heated for 100 hours.

“A small and agile business needs to look forward while keeping in mind customers’ interest in environmentally-friendly operations,” Pasi stresses.

STEVECO

aims high for lower emissions Text: Annukka Ollitervo Photos: Steveco and Shutterstock

The growing interest in the share of distribution chains and logistics in the CO2 emissions calculation of products is also reflected in Steveco’s customer base. Steveco’s emissions calibration and reporting are already at a good level, but decisive technological steps to reduce emissions are yet to be realised.

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Green logistics aimed at minimising the environmental impact of logistics is what many of our customers expect today.

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inland’s and EU climate goals challenges logistics companies.

“Sectors that have been working towards responsible operations for a long time, such as the forest industry, are already well aware of their own emissions output. Our customers are shifting their focus from their own to other emissions in the supply chain, such as subcontractors and logistics. Green logistics aimed at minimising the environmental impact of logistics is what many of our customers expect today,” says Erkko Saarinen, Steveco’s Sustainability and Development Manager.

At Steveco, this is reflected in customers’ growing interest in reporting emissions.

Development Director Heikki Jääskeläinen believes that customer demand for greater accuracy and goal-setting will increase even more in the future.

“Our emissions are intrinsic to their emissions. That is why we are expected to have a clear understanding and action plan on how to develop a sense of responsibility and reduce logistics emissions,” he explains.

COMPREHENSIVE AND ACCURATE EMISSIONS DATA

Steveco’s own emissions have been meticulously investigated. Last year, the Group introduced Envare Solutions’ Ensio monitoring system which provides data in a visual and easily understandable format for calculating and monitoring emissions – both carbon dioxide and fine particulate matter.

“We know the current state pretty well and where our emissions come from. We

also have an idea of what the realistic possibilities are for reducing them and how the goals can be achieved,” says Jääskeläinen.

“In addition to the current situation, the system gives us information on the effectiveness of emission reduction measures. It is extremely important for us to understand the efficacy of different measures so that we can make decisions that are both cost-effective and as impactful as possible,” Jääskeläinen emphasises.

Ensio’s calculations and data are also used

by Steveco’s customers to calculate their own total emissions. Interest in reporting and recordkeeping is growing all the time.

ALTERNATIVES NEEDED FOR ENERGY CONSUMPTION BY WORK MACHINES

At Steveco, by far the largest source of emissions, accounting for more than 60 per cent, is port machinery. The Group is actively exploring options to reduce their CO2 emissions.

“The most significant solution to reduce emissions would be to replace diesel with electricity or other renewable energy. However, there is currently no fuel alternative that is efficient enough, suitable for Finnish conditions, cost-effective and which meets our usability requirements,” Jääskeläinen states. ”Next summer, we will test the use of renewable diesel in designated machines and evaluate its cost-effectiveness potential for reducing emissions.”

While waiting for new technological solutions, another way to reduce emissions is to gradually renew the fleet of about 350

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At Steveco, by far the largest source of emissions, accounting for more than 60 per cent, is port machinery.

machines. New machines consume less fuel than older ones. ”If, for example, the usability improvement gained by four new machines can replace six old ones, Ensio will be able to simulate the emissions reduction resulting from the investment and calculate its effectiveness,” says Jääskeläinen.

MORE ENERGY-EFFICIENT

ONLY IMPACTFUL INVESTMENTS

PROPERTY

Jääskeläinen and Saarinen both underscore that Steveco also wants to act responsibly in measures aimed at reducing emissions. Impressive efforts are not worthwhile if they have no real effect. ”When it comes to investments, we have to remember that we are

Although the share of real estate in Steveco’s emissions is smaller than that of work machines, efficiency measures are also being taken in that area. In 2017, Steveco joined the Energy Efficiency Agreement. For example, the company has redesigned 10

warehouse lighting to use more energy-efficient LED lamps and improved heating systems for properties.

“Since most of our properties are located in ports, we are naturally interested in new heating and cooling solutions making use of seawater.

So far, they are not yet advanced enough,” says Jääskeläinen.

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talking about six-digit figures per machine, and the average service life is 10 years,” Jääskeläinen points out.

“The way in which investments are made must also be done responsibly. The potential for propulsion is carefully calculated because we take the effectiveness of our investments seriously. At the same time, we must ensure that the services we provide are cost-effective and seamless. The price tag for emission reductions must be at a reasonable level for both us and our customers.” ”Responsibility is not just our spearhead, but part of the way we think and act.”

We will continue on this path.

Text: Jukka Nortio Photos: Steveco, Shutterstock

War in Ukraine creates

turmoil in the lumber market Despite the unstable world situation – and partly because of it – Finnish sawmills are exporting their products worldwide at a record pace. Demand is high and there is a lot of available wood to be sawn.

RUSSIA’S INVASION OF UKRAINE has had a significant impact on the EU sawn timber market with Ukraine, Belarus, and Russia accounting for about 10% of sawn timber imports into the EU. As much as 3.7 million cubic metres of Russian wood, about 4.5 million cubic metres from Belarus and some 2 million cubic metres from Ukraine have been imported into the EU. Russia is now out of the EU market due to triple sanctions: the EU has banned the import of timber; shipments from Russia to EU countries have been stopped; and Issuers of PFC and FSC timber certificates no longer accept Russian timber.

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Belarusian timber is banned from import into the EU, and Ukraine’s timber trade with EU countries is at a standstill.

Finland’s sawn timber exports were 8.8 million cubic metres in 2021.

“The opportunity to take on new customers is limited because the sawmills are already operating at full capacity. Sawmills continue to buy wood, even though they have plenty of inventory,” says Kai Merivuori, CEO of the Finnish Sawmills Association.

FINLAND’S EXPORTS TO CHINA ARE DOWN

The sawn timber offered by Finland and Russia to the world market is largely similar as the tree species and the growth conditions are nearly the same. In recent years, China has invested in Russian sawmills. Chinese sawmills are simple and labour-intensive while new Russian sawmills have improved the technical quality of Russian sawn timber, making them more competitive.

“More than half of the upwards of 28 million cubic metres exported by Russia goes to China, and a significant part goes to the CIS countries (the former Soviet republics),” says Merivuori.

In 2021, China was the fourth largest export market for Finnish sawn timber after Egypt, the United Kingdom and Japan. Chinese exports fell by a quarter from the previous year.

“Finland’s exports of sawn timber to China have changed dramatically: 1.7 million cubic metres went there in 2017as compared to only 0.7 million cubic metres last year,” says Merivuori.

Europe’s importance to Finnish timber exports will increase as the focus of Russian exports shifts to Asia.

This development is accelerated by the weakening rouble, which makes Russian sawn timber attractive to those countries that do not restrict trade with Russia.

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Europe’s importance to Finnish timber exports will increase as the focus of Russian exports shifts to Asia.

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“When Russia is unable to export timber to Europe, it will direct its goods to China, India, and the former Soviet republics. This is, however, a logistical problem for Russia, where the adequacy of railway capacity is currently uncertain. The war affects logistics,” Merivuori points out.

TWO YEARS OF MARKET TURMOIL

The war in Ukraine will clearly cause an upheaval in the sawn timber market. At the same time, it introduces a new phase in the sharp fluctuations in demand and prices caused by the Covid pandemic that has lasted more than two years.

When the war in Ukraine broke out, sawn timber buyers became nervous 14

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about how they could make up for the missing tenth from the market. Then, demand saw a bounce and there was a sudden shortage of goods.

“We have seen growing demand. On the other hand, the global economy is becoming problematic due to a slowdown in construction and inflation. We are looking for a new balance between supply and demand, where the future is very difficult to predict.”

If the war continues for a long time, it will weaken the demand for sawn timber as construction, which is important to the sawn timber market, declines.

“We have seen exceptional fluctuations in both supply and demand, even quarterly, so finding that balance can take time,” Merivuori says.

INFO

In containers and in bulk Almost nine million cubic metres of Finnish sawn timber is sent around the world every year, mainly in containers.

Container availability has improved since last autumn, although container prices are at a much higher level than usual.

Sawn timber is transported in bulk to countries in North Africa and the Middle East. These shipments may be affected by sanctions on Russia. According to Merivuori, this is due to the international boycott of Russian ships, which play a significant role in traffic to Egypt, and other countries.

Text: Eija Anttila

The best transport solutions

cost-effectively and responsibly IN ROAD FREIGHT, COMPETITION IS FIERCE,BUT STEVECO HAS MANAGED TO EVEN WIN MARKET SHARE DURING THE COVID PERIOD. TURNING TO EXISTING CUSTOMERS IS KEY.

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STEVECO’S AIM TODAY – and even more so in the future – is to be a full-service logistics provider that offers end-to-end logistics services for every need. Part of Steveco’s seamless logistics chain is road transport by trucks.

Steveco is mainly known as a port operator – this still forming a major part of the operations – but road transport operations are constantly expanding.

According to Ville Huovila, Logistics Manager, Steveco Logistics, road transport started with haulage services for the forest and paper industries, and then expanded to other industries such as the steel, engineering, and furniture industries.

“Our goal is to offer the best possible transport solutions cost-effectively and implement them responsibly”, says Ville Huovila.

Among other aspects, this is possible thanks to a subcontractor network of carefully selected hauliers. All are audited suppliers.

GOOD LEVEL OF SERVICE

Steveco is constantly striving to grow as a freight forwarder and has been successful even during the Covid period.

“Overall, the pandemic has posed challenges to transportation worldwide, but we have managed to grow and win market share.”

Growth has not come easily, though. There are many players in the industry and competition is fierce. Huovila finds at least one important explanation for Steveco’s success.

“We have been able to make good use of our existing customer relationships. We have a great team, and our level of service is excellent. We have received a lot of good feedback on this.”

Of course, there is always room for improvement. According to Huovila, both Steveco and competitors need to minimize empty transport

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legs and find optimal route options to keep empty journeys as short as possible.

REAL-TIME TRANSPORTATION

TMS (Transport Management System) is a tool that works well in real-time transport management and organization, also during the pandemic. Dispatchers have access to the TMS system from home.

“We have survived well, and the pandemic has even had some positive effects: the use of paper has decreased considerably.”

As is the spirit of the times, transport order management happens largely online. The majority of consignments are the bulk coming from annual contracts, complemented by one-time customers.

Dispatchers work during office hours, but loading and other transport-related functions operate round the clock. Steveco also handles container transport.

In addition to haulage operations within Finland, Steveco’s transport services extend outside the national borders. The main market areas are Russia, Ukraine, the CIS countries, the Baltic countries, Eastern Europe and Germany, the Netherlands, Belgium, Italy, Spain, and Portugal.

RAUTE RELIES ON EXPERIENCE

Lahti-based Raute Corporation delivers plywood mills to its customers on a turnkey basis, if necessary. The company is currently supplying all machinery and equipment to a greenfield plant to be built in the town of Galich in the Kostroma region of Russia. After a tough bidding round, Raute chose Steveco as their logistics services provider.

“The total number of trucks will be 421. This includes normal loads, oversize loads and escorted loads”, says Marjo Tuominen, Supervisor

Delivery Control and Warehouses, Raute.

Shipments to the Vaalimaa border crossing and on to Russia leave either from the Raute plant in Nastola or from rented warehouse space at the port of Hamina.

The contract also includes loading service.

“Professionalism is evident in Steveco’s management of logistics services. They are a big and experienced player.”

In Tuominen’s opinion, the operations are efficient and the communication between Raute and Steveco works magnificently.

“We know all the time, in real time, where each truck and each load item advance. And if any questions about transportation or storage should come to mind, we get the answers quickly.”

Experience is extremely important when doing business with Russia. Raute has traded with Russia for a long time, but anything can happen before the border, at the border, and beyond the border.

“If we had an inexperienced partner, things could go totally awry. That is why communication is paramount. This is a joint project between the two of us.”

”The pandemic has posed challenges to transportation worldwide, but we have managed to grow and win market share.”

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The Q Yachts electric boat is a product that needs a roof crane to be loaded and unloaded, and a mega trailer to transport it.

CUSTOM-TAILORED FROM DESIGN TO DELIVERY Q YACHTS IS A FINNISH MANUFACTURER OF STATE-OF-THE-ART ELECTRIC BOATS. THE BOATS HANDCRAFTED IN FINLAND AND POLAND ARE EQUIPPED AND FINISHED ACCORDING TO THE CUSTOMER’S SPECIFICATIONS. TRANSPORTATION IS ALSO ARRANGED TO SUIT THE CUSTOMER’S NEEDS AND SCHEDULE. 18

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”Total trust in a partner is important to us.”

Text: Annukka Ollitervo Photos: Johannes Wiehn

C

alled the ’Tesla of Electric Boats’, Q Yachts manufactures customised boats that are not only enjoyed by users, but also benefit the environment: the ultra-quiet and energy-efficient electric boats are environmentally-friendly products of the future, for which demand is expected to rise significantly.

The majority of Q Yachts’ electric boats are sold directly to private individuals as well as through resellers around the world. Currently, the main market is in Central Europe where the demand for electric boats is growing.

Johan Uunila, CEO of Q Yachts, says that the boats manufactured in Finland and Poland are transported to distant countries by sea. European deliveries are handled by land in one truckload from door-to-door.

“Delivery requires coordinating many parts with different partners.

In addition to customs clearance and insurance, unloading at the customer’s end, for example, requires its own plan with careful scheduling and ensuring crane availability,” he points out.

ON TIME AND SAFE DELIVERY

The first joint project between Q Yachts and Steveco involved the delivery of a state-of-the-art Q30 boat from Kotka to Tuscany, Italy. Steveco was responsible

for the scheduled delivery of the boat to its handover at destination.

When transporting customised specialty products, trust in the partner is very important as tight cooperation is a big part of the customer’s good client experience.

“The most important thing for our customers, the buyers, is that the boat arrives on time and safely. Everything went well with Steveco. We are really satisfied,” says Uunila.

“Steveco is a big player with comprehensive networks and outstanding expertise. In our cooperation, we of course also value their competitive pricing.”

“The Q Yachts electric boat with Lithium batteries requires ADR transport, which requires the driver carry a permit for transporting of hazardous goods,” he says.

Excellent project management and scheduling are critical due to the special equipment and special arrangements involved. Steveco closely monitors the progress of shipments and reports back to the customer at agreed intervals.

“Transporting electric boats requires exactly the kind of service for which we have the experience, expertise and the right equipment. We are very happy to be a party to exporting environmentally-friendly, high-end Finnish products to the world,” says Tuokko.

STEVECO HAS OVER 20 YEARS INFO

EXPERIENCE IN EXACTING LAND TRANSPORTATION

Steveco has been operating land transport to countries outside Finland for twenty years. ”We have good contacts and longterm partners with whom we handle very different types of transport, from individual cars to shipments of several hundred cars and demanding transports that require special equipment,” describes Marko Tuokko, Sales Manager at Steveco.

Transporting an electric boat requires specialised expertise from a transport partner.

Q Yachts 1. Q Yachts, founded in 2015, is a Finnish developer and manufacturer of electric boats.

2. Turnover in 2021 was about €0.5 million, and this year the goal is to double the turnover to €1 million.

3. The boats are manufactured in Finland and Poland. Thanks to the innovative design of the hull, the boat glides very smoothly and energy-efficiently without producing polluting emissions.

4. Market area: worldwide.

More information: https://q-yachts.com

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Text: Jukka Nortio Photos: Steveco

A wide range of pulp

LOGISTICS OPTIONS The centralisation of pulp transport at Steveco’s Mussalo terminal will increase pulp logistics efficiency and flexibility.

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T

he pulp market has undergone quite a change over the last twenty years. Where pulp was previously produced mainly for domestic paper and board mills, the major part is now exported as market pulp. This has increased the volume of container traffic.

“The needs of our customer companies have changed as the market has expanded.

Exports to China in particular have grown rapidly. Containers as a transport mode have a primary role because all logistics there relies on containers,” says Markus Myllylä, Steveco’s Sales Director. ”The use of containers does not require moving tens of thousands of tonnes; instead, the pulp can be delivered even in smaller batches on a continuous and regular basis.”

Rising global freight rates and problems with the availability of containers mean that other options must be available alongside container traffic. Break bulk, which has always figured strongly in South American pulp exports, has become an important part of maritime pulp logistics in Finland as well.

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Steveco’s Sales Director.

The uniqueness of the pulp terminal lies in its Container transport of pulp became expensive as versatility. It offers the customer a full range of container transport developed problems with avail- logistics options at very short notice. If necessary, the ability, capacity and pricing. Pulp exporters began pulp can be loaded in bulk on a large or small ship to consider break bulk vessels as alternatives, which or transported in a container. The pulp can also be can be loaded with anything from 10,000 tonnes to loaded onto trucks or rail wagons, either in contain60,000 tonnes of pulp. Steveco was involved in that ers or in bulk. development.

“At the Mussalo pulp terminal, it is possible to “We set out to develop a pulp logistics area in choose any form of transport to anywhere in the Mussalo where full-length world from one location, even at short trains can enter without notice. Decisions can therefore be made very breaking the train. Another quickly,” says Myllylä. ”The thing is a warehouse customIn the past, there were rather few options underlying ised for pulp, which is very for break bulk to China, for example, and planning different from a regular paper larger ships had to call at several ports. Now principle was warehouse. The underlying a choice of 10,000–60,000-tonne ships from that we can offer planning principle was that several shipping companies is available. If all forms of pulp we can offer all forms of pulp necessary, they can get a full cargo at once, logistics to our logistics to our customers in so that the freight price per tonne of pulp customers in one area,” says Tapio Mattila, stays reasonable. one area.”

CONTAINER SHORTAGE MEANS AN UPTICK IN BREAK BULK DEMAND

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Pulp exports through Steveco have grown by more than 50 per cent in the last five years.

“The use of even smaller ships has increased significantly due to container problems. Every call to a port increases the price of freight, so loading at one stop is a cost-effective way to operate,” says Myllylä.

SERVICES DEVELOPED TOGETHER WITH FOREST COMPANIES

Steveco has been developing pulp export logistics for decades with several forestry companies. The Mussalo pulp terminal in Kotka is the most prominent achievement of this development work to date.

“Our terminal is one of Finland’s first world-class pulp terminals. It allows us to supply the world with products from several different companies in the same environment.

Logistics integration can bring significant benefits,” Myllylä emphasises.

The site, specifically tailored for pulp logistics, was opened in autumn 2019. It includes a 20,000-square metre warehouse, a 20-hectare field, and a new 220-metre pier. They were constructed as a joint venture by Steveco, the Port of HaminaKotka and UPM. The project was boosted by UPM’s decision to concentrate all maritime traffic from the Kaukas and Kymi pulp mills in Kotka.

On the other side of the quay in the same area, pulp from Metsä Group’s mills is handled.

A new phase in the terminal area will begin now that Steveco will build a new 24,000-square metre terminal, primarily for Stora Enso, scheduled for completion in autumn 2022. ”The terminal is in a great location in the Mussalo D area and offers efficient, safe and environmen22

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tally-friendly delivery options for various modes of transport both to Europe and overseas,” says Timo Hatva, Stora Enso’s Senior Vice President, Logistics in Finland.

The extensive concentration of pulp logistics operations serves the forest industry and the entire Finnish economy. ”The D area of Mussalo has become a nationally significant logistics centre for the forest industry, and

and containers filled very fast,” says Myllylä.

Pulp exports through Steveco have grown by more than 50 per cent in the last five years. Last year, Steveco already processed almost two million tonnes of export pulp, which is about 50 per cent of Finland’s pulp exports.

Containers were used for 60 per cent of the total amount, while 40 per cent was transported in bulk.

The Mussalo terminal utilises the latest technology in pulp transport. Many pulp units come with a RFID tag that allows the manufacturer to see where in their mill system each unit is moving and how each product unit is handled.

LISTENING TO CUSTOMERS RESULTS IN NEW SERVICES

with its 15.3-metre fairway depth, it is competitive in the entire Baltic Sea region,” says Kimmo Naski, CEO of HaminaKotka port.

SMOOTH OPERATIONS ACROSS THE TRANSPORTATION CHAIN

The handling of containers is already a smooth operation right at the beginning of the logistics chain because the pulp enters the port in units dimensioned according to the size and load capacity of the containers.

Container loading is centralised at the port since it is not very practical to transport containers to pulp mills.

A regular flow of empty containers returns to the port. ”The pulp comes in full trains to Mussalo, where wagons are unloaded

Steveco will continue to be the largest and most reliable high-quality pulp handler in Finland. This has been achieved through the continuous development of services together with its customers. ”We are further developing a multifunctional pulp terminal that serves our customers in all market situations so that they can decide, even at the last minute, which mode of transport to use to move the goods,” says Myllylä.

Customers have clear goals for ongoing development of pulp terminal services.

“Operations must be completely uninterrupted and predictable. There can be no surprises. In the event of deviations, there must be room for making capacity adjustments. We are constantly developing cost-efficiency.

Operations must be completely transparent and paperless,” says Mattila, summing up Steveco’s development goals.

”The terminal offers efficient, safe and environmentallyfriendly delivery options for various modes of transport.”

UPM TRUSTS STEVECO The growing uncertainty in the container market has had a significant impact on the forest giant UPM’s logistics.

When the demand for containers rose sharply, Matti Tamminen, Logistics Director of UPM’s pulp business, had to start thinking about logistics solutions in a new way.

Since 2018, he has led the global logistics of the company’s pulp business in Mannheim, Germany.

All pulp from UPM’s Kymi and Kaukas mills to the Asian market normally travels in containers and to Europe in bulk. The containers to Asia are shipped from the port of Mussalo in Kotka by feeder vessels to the ports of Central Europe, from where they are reloaded on ocean-going vessels. Europe accounts for about two-thirds and Asia for about one-third of the pulp leaving Kotka.

The majority of pulp container capacity is secured by transportation contracts. However, bottlenecks in the global container market last year caused occasional disruptions to capacity availability.

“During the last summer and autumn, we decided to move some of the pulp transports from Finland to the Far East to bulk carriers. They accounted for about one-fifth of Asian volume last year. At the moment, it looks as though we can cope with containers,” he says.

The pulp terminal built by Steveco and UPM in Area D of the Port of Mussalo is a major hub for UPM’s pulp logistics.

“At the end of 2019, we concentrated the shipments of Kymi and Kaukas production in Mussalo. Centralisation gives our transport planning more flexibility. Handling at our warehouses is now much more modern. We can transport even more of our pulp by rail directly to the port.

Steveco is an extremely important partner for us as we continuously develop this logistics chain,” says Tamminen.

The area will continue to develop as new piers are completed and another pulp storage facility is built in Area D. “In the future, we will be able to switch even more of our logistics from road to rail. Train scheduling and operational efficiency will improve in the future when two unloading tracks can be used. Finland’s largest container terminal, right next to our warehouse, gives us the flexibility to send our containers all across the world’s seas,” says Tamminen.

Steveco and UPM are developing the digitalisation of pulp logistics to provide better transparency throughout the logistics chain. Minimising the carbon footprint is another important area for development. The continual increase in rail transport has been a great success.

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SERVICES

Insourced depot services ups

efficiency and customer satisfaction A few years ago, Steveco Oy woke up to the fact that depot services is an essential and central part of the company’s operations and service package, a core business that it wanted to gather into its own hands.

The result – greater customer and staff satisfaction.

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Text: Eija Anttila Photo: Steveco

T

he first site to insource was Vuosaari. A couple of years later the Mussalo container terminal also joined the initiative. Until spring 2018, depot operations were handled through a subcontractor, which now could be dropped from the depot empty container operations.

“Before we made a decision that was quite a big deal for us, we discussed the matter with our key shipping customers.

They thought it was a good and important idea that would give them the whole handling chain directly from us,” says Tapio Mattila, Senior Vice President, Sales.

Feedback from customers has also been quite positive.

OVERALL RESPONSIBILITY

According to Mattila, insourcing depot operations was a natural and important move, not least because Steveco has an end-to-end responsibility for the entire package, whether or not a subcontractor is used.

“Even the customer knows whose head is on the block,” Mattila laughs. “But seriously, the depot service is an important part of our service.”

Many different adjustments were needed in the early stages of the operation, but now, three years later, Steveco is very pleased with the decision. Feedback from customers has also been quite positive.

THE RIGHT HAND DOES KNOW WHAT THE LEFT HAND IS UP TO

The insourcing of the depot service was a big deal for Steveco, not least financially. Jani Ylämäki, Terminal Manager at Vuosaari, says that the first thing was to buy machinery.

Five empty container handlers were acquired in Vuosaari, along with

reachstackers, container stackers and an empty stacker.

“The new operations also required staff to be trained in both handling the machinery and the inspection of containers,” says Ylämäki.

Steveco recruited new staff in Vuo­ saari, while the rest of the resources needed were available in-house.

In Ylämäki’s opinion, one of the best aspects of insourcing the depot service has been the way information now flows in a streamlined and faster process.

“When information moves only within the company, things get done more efficiently. The right hand always knows what the left hand is doing.”

According to Ylämäki, the operation is on the right track in Vuosaari, running smoothly and free of complications.

“The whole thing is on the plus side by far.”

WORKPLACE MOTIVATION AND WELLBEING

In Mussalo, the depot service has a

slightly different operating model than in Vuosaari, but communication has become more straightforward and operations more efficient. In Mussalo, no additional personnel were needed for the depot.

Terminal Manager Niko Arola says that operations have started smoothly.

Machinery purchases were necessary in Kotka as well, to the tune of eight empty stackers.

Arola considers the increase in staff motivation and improved work ergonomics to be two significant benefits.

“Even senior drivers have been enthusiastic about the depot as they alternate between driving straddle carriers and reachstackers,” Arola points out.

Ergonomically, the difference is that a straddle carrier driver looks downwards for most of the shift, while a stacker driver looks upwards to a height of up to 20 metres.

Overall, Arola sees a great deal of potential and development opportunities in the depot service.

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Text: Kirsi Riipinen Photo: Marko Laukkarinen

TOP-NOTCH SALES TEAM Steveco’s sales team is made up exclusively of experienced professionals who leave no stone unturned in their pursuit of success for their customers.

A

nd now we proudly introduce Steveco’s caused problems for many customers. It’s made it difficult Power Seven sales team: Tapio Mattila, for them to estimate how much it will ultimately cost them to deliver the goods.”

Vice President, Sales and Marketing, International trade has also been hampered by Markus Myllylä, Vesa-Heikki Renlund container imbalances, which Orimus says may be felt for and Mia Brunila, Sales Directors, and a long time to come.

Sami Orimus, Markku Tuokko and Päivi NygrenHe is pleased that the sales team has been able to help Laitinen, Sales Managers. customers and look for alternative delivery methods to Now that Covid-19 is fading, the team has taken up sea freight, if needed. Instead of a sea container, goods hybrid work combining remote work with being in the have travelled in bulk on ships, and sometimes the head office on Kirkkokatu street in Kotka. And there are smartest thing has been to use rail transport. even times, though rare, when they are all at the office A lot of research has gone into looking for the most together at the same time. suitable options for each customer and shipment.

“We have a common mindset to be on the move and to meet customers in person. Combined with online meetA TREASURE TROVE OF EXPERTISE ings, this is a workable hybrid model,” says Brunila.

Renlund says that the finely-tuned skills of the sales team Mattila cites an everyday example from the exceptional stem from the diverse careers of the team time of the pandemic of how modern members. Colleagues have experience technology plus in-person customer It is easy for the cus- in various aspects of production relations can streamline operations. and forwarding, with an impressive He arranged an online meeting with a tomer to contact a familiar client operating in the Far East, familiar sales person accumulation of specialised expertise.

The sales team members take care of during which they reached an agreewith any questions their customers independently – whether ment on future matters. After hearing it is exports, imports, transit, loading or about the online meeting, a friend of they might have even customs clearances. It is easy for Mattila’s remarked, “You see, the whole about deliveries. the customer to contact a familiar sales thing was handled in an hour, and you person with any questions they might didn’t need to travel anywhere”.

“I said he was wrong. We were able have about deliveries. to renew the contract online because we had first laid the Because the sales team is close-knit and its members foundation for a trusting business relationship, face-tohave known each other for many years, customers benefit face, before the pandemic hit,” says Mattila. and get help from other team members when they need it.

“If I need special knowledge about freight, for example, A PANDEMIC OPENS UP NEW ROUTES I get the best advice from a colleague, which I can pass on Orimus is well aware of how the pandemic has complicatto the customer. In turn, team members seek advice from ed Steveco’s customer relations. me about a specific project and special handling,” says “Container shipping has been really messed up during Renlund. the pandemic. Import and export freight prices around The team took steps to introduce a new version of the the world have been higher than ever before, which has customer management system to work more systemat-

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“We are down-to-earth and approachable people, but at the same time deeply committed professionals.”

1 Mia Brunila 2 Tapio Mattila 3 Vesa-Heikki Renlund 4 Markus Myllylä 5 Päivi Nygren-Laitinen 6 Marko Tuokko 7 Sami Orimus

ically in February. Up-to-date information is helpful in planning and monitoring as part of the in-house information flows, in addition to working with customers.

Another benefit is that it gives team members more time to listen to customers’ concerns when their working hours are not wasted looking for issues that have already been resolved.

OUR SEASONED TEAM

How do team members characterise their working group?

If the definition boils down to just one word – or two – team members say it is “highly skilled” with experience accumulated over decades. That lengthy experience means they have dealt with all kinds of situations.

“We get to do and resolve a lot of different things.

Even the veterans update their skills regularly, and the company is delightfully willing to invest in training. It’s impossible to get bored here because the work is dynamic

and varied,” says Brunila.

Mattila hopes that the integrity and openness of the team members will reverberate all the way to the customers.

“We are down-to-earth and approachable people, but at the same time deeply committed professionals.”

The members of the team hope that Steveco’s delivery reliability and fine reputation will also be clear to its customers, along with the company’s reputation for responsibility to its commitments.

“We also feel a great responsibility for the success of our customers’ business. We leave no stone unturned to complete all assignments, as we work within the sales team and with production,” says Brunila.

The team members assure customers that they can contact any of them at any time. They are on call to pave the way to success. And they like to remind customers that there are no stupid questions! So, feel free to ask our ace sales team any and all questions that come to mind.

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Exports or imports, projects or break bulk cargo No matter what the project, you don’t have to worry. We will handle the entire delivery on your behalf – reliably and cost-effectively.

Steveco is Finland’s largest full-service logistics company, which specialises in stevedoring and logistics services. We have long-term experience in, e.g. Exports in the engineering industry and also heavy or oversized cargo will be handled effortlessly. In addition to this, various imports and transit cargoes arrive smoothly.

As our customer, you are the most important operator of the process, and the transport solutions are customised according to your needs. In this way, we ensure quick, reliable and cost-effective transport for your products. If necessary, we can provide you with project and cargo forwarding as well as road, sea and rail transport.

Our transport services by sea are available from all of Finland’s ports. We handle transports directly from the factory to the destination, but there are also intermediate storage services at the sea ports as well as in Lappeenranta and Kouvola.

Please contact us - let’s prepare the best solution for your project.

SALES DIRECTOR Vesa-Heikki Renlund tel. +358 44 2323 335 heikki.renlund@steveco.fi

@stevecoGroup

Steveco Oy

SALES DIRECTOR Markus Myllylä tel. +358 44 2323 785 markus.myllyla@steveco.fi

@steveco_oy

SALES sales@steveco.fi

@StevecoOy

www.steveco.fi

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