14 minute read
Transport solution
Text: Eija Anttila
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.
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 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 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.
”Total trust in a partner is important to us.”
Text: Annukka Ollitervo Photos: Johannes Wiehn
Called 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.”
STEVECO HAS OVER 20 YEARS 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.
“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.
INFO
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
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.
PAGES 20–23
The 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.
CONTAINER SHORTAGE MEANS AN UPTICK IN BREAK BULK DEMAND
Container transport of pulp became expensive as container transport developed problems with availability, capacity and pricing. Pulp exporters began to consider break bulk vessels as alternatives, which can be loaded with anything from 10,000 tonnes to 60,000 tonnes of pulp. Steveco was involved in that development.
“We set out to develop a pulp logistics area in Mussalo where full-length trains can enter without breaking the train. Another thing is a warehouse customised for pulp, which is very different from a regular paper warehouse. The underlying planning principle was that we can offer all forms of pulp logistics to our customers in one area,” says Tapio Mattila,
Steveco’s Sales Director. The uniqueness of the pulp terminal lies in its versatility. It offers the customer a full range of logistics options at very short notice. If necessary, the pulp can be loaded in bulk on a large or small ship or transported in a container. The pulp can also be loaded onto trucks or rail wagons, either in containers or in bulk. “At the Mussalo pulp terminal, it is possible to choose any form of transport to anywhere in the world from one location, even at short notice. Decisions can therefore be made very ”The quickly,” says Myllylä. underlying In the past, there were rather few options planning for break bulk to China, for example, and principle was larger ships had to call at several ports. Now that we can offer a choice of 10,000–60,000-tonne ships from all forms of pulp several shipping companies is available. If logistics to our necessary, they can get a full cargo at once, customers in so that the freight price per tonne of pulp one area.” stays reasonable.
“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 environmentally-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
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 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
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.
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.
