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Steveco is an end-to-end logistics provider that fulfills all your freight forwarding and logistics needs. page 6

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Breakbulk

528H 1

edition

may 2014

proven gateway east Finland is high tech for smooth operations. page 2

F

When a customer needs punctual and reliable ­ delivery to Russia, F i n l a n d ’ s p o r t s a r e ­­ the safe choice.

proven gateway East text by Risto Pennanen photos by Juha Metso and Elina Harjama

fact

Best Baltic Sea ports

Quality of port infrastructure

Country Score

pages

2–5

or transporting goods to Russia, Finland is a natural choice – an efficient transit country that can ensure the best possible risk management. In the ­latest Global Competitiveness Survey by The World Economic Forum, ­business executives ranked Finland’s ports highest in the Baltic Sea and fifth highest worldwide. Port efficiency is increasingly important as businesses change their processes towards greater fluidity in line with the lean concept.

Companies need to get goods into production or into a store just in time. ­Unnecessary time in storage means higher cost and lower competitiveness.

Greater efficiency up and down the chain often translates into significant cost savings, but it can also mean more trade and industry vulnerability, which is why the reliability of the logistics chain is today more important than ever.

“If the summer shoe selection arrives too late in the shop, they won’t sell,” says Key Customer Manager Sami Orimus of Steveco Logistics.

The aim of the lean philosophy is to have the goods in the right place at the right time and in line with the agreed terms. Businesses want to trim the waste and raise productivity. In Moscow, for instance, storage space is expensive, so many businesses wish to keep stocks low. This can be achieved only if delivery can be guaranteed as agreed with the customer.

1. The Netherlands

6.8

2. Singapore

6.8

Efficient and safe

3. Hong Kong

6.6

4. United Arab Emirates

6.4

The high marks for Finnish ports in the WEF survey didn’t surprise. The import-export sector has always been vital to Finland, and is the foundation for Finnish expertise in this area. Due to its geography, eastward is the only direction for which connections by land can be made from anywhere in the country, and this goes to the heart of Steveco’s excellent and long acquired expertise in handling the entire logistics chain.

5. Finland 6.4 6. Panama

6.4

7. Belgium 6.3 8. Iceland 6.0 9. Germany

5.8

10. Sweden

5.8

…

The Global Competitiveness Report shows that Finland has the best Baltic Sea ports

17. Estonia 5.6

and fifth-best ports worldwide. The Netherlands is the only European country ahead

88. Russia 3.9

of Finland.

Source: The Global Competitiveness Report 2013–2014, World Economic Forum

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May 2014

May 2014

3

container balance and two-way shipping. If this cannot be done, traffic will move to other ports and cost pressures increase,” says Jouni Ahrela, Managing Director in Finland of CMA CGM, a global shipping company.

The bottom line is that Finnish ports must keep their competitive edge.

“They need to be able to provide services at a lower rate 24/7,” Ahrela concludes.

fact

Reliable logistical environment Finland’s infrastructure ranking among 148 countries Protection of property

Extensive ICT expertise

1.

Bribery 2.

Efficiency of judicial system in dispute settlement

2.

Expenses for companies from crime and violence

3.

Good corporate governance

2.

Quality of infrastructure

3.

Quality of roads

9.

Quality of railways

6.

Quality of aviation infrastructure

6.

Quality of power distribution

5.

Quality of ports

5.

The transport

Source: The Global Competitiveness Report 2013–2014, World Economic Forum

environment in Finland is safe and secure.

The quality of ports is due to many factors. Service reliability, lead times and security score particularly high.

Service reliability is especially crucial in winter when our modern icebreakers keep the sea lanes open even in the harshest ice conditions.

“In Russian ports, we have challenging situations particularly because of congestion, but breaking the ice to keep channels open is also a big challenge in harsh winters,” says Timo Hatva, Logistics Director of the forestry products company Stora Enso.

Stora Enso closely monitors the ports for service reliability, any handling damages incurred as well as loading efficiency. Keeping a close eye on cost efficiency is also key to successful operations.

Finnish ports score high in many key areas. The volume of weekly departures in all directions is manageable, shipping services are competitive and container capacity meets current demand.

“To stay competitive, however, port operations need to be even more agile and constantly develop,” says Hatva. container balance scores high

Finland is also a good transit country for container transport because empty containers can always be refilled with 4

May 2014

exports. In Russia, it’s a different story. Nearly half of the containers that arrive in Russian ports still leave empty and need to find replacement cargo elsewhere.

Finland exports a great deal of container-transported goods, so there is always someone to foot the bill for the return freight.

“In Finland, you can always find cargo for the return leg, so the customer is not burdened with empty container repositioning costs,” says Steveco’s SVP for Sales and Marketing, Tapio Mattila.

If an empty container has to be carried to Rotterdam or elsewhere before return freight is available, the logistics chain loses efficiency and incurs unnecessary costs.

Transit freight passing through Finland and Finland’s own exports eastbound go hand in hand.

“They create strong flows that aid others. Strong terminals remain competitive because of their skilled personnel, adequate operating hours and good technology,” says Stora Enso’s Hatva.

Therein lies the challenge for Finnish container ports in the future. Port competition has risen significantly, so holding on to traffic flow is more important and challenging than ever.

“It’s vital for shipping companies for ports to maintain

Finland, the home of Nokia, has long been in the forefront in applying ICT solutions, as clearly seen in the industry-authorities-operators chain. Finland is high tech for smooth operations The Steveco container terminal, for instance, uses a check-in kiosk for trucks to alleviate rush hour queues and provide services at all hours. The multilingual kiosks operate in Finnish, English, Estonian and Russian. A similar service is also available online.

Recently Steveco introduced Aviso, a service the forwarding agent can use to monitor the containers’ movements in real time.

Information technology is vital to ensuring agility and adaptability throughout the chain. Real-time data on the cargoes of incoming vessels helps the ports to plan capacity in advance so goods move on from the port as quickly as possible.

IT ensures that loading, customs clearance and transportation are managed without delays and customers receive their goods on time.

“With our regular customers, containers arriving in Finland leave for Russia the next day. Of course, this requires that all the paperwork is in order,” says Orimus. cross-border and international

Modern ports cannot rely on logistics alone – all links in the chain must be reliable. The World Economic Forum’s Global Competitiveness Survey indicates that Finland’s good infrastructure, property protection, low crime and judicial system are all important factors in the country’s shipping competitiveness.

Finland’s good relations with port and other authorities are also an asset in cross-border operations. Steveco, for example, has an expert representative who consults with The National Board of Customs, which puts the company in a good position for its voice to be heard when reforms are being considered, and who keeps the company abreast of changes in Finnish, EU, Russian or other regulations.

Finland’s railway network and road infrastructure are well maintained. From Finland’s biggest transit port in Kotka, goods can be transported to Russia by road or by rail. This spring Steveco launched container-carrying

Local service in Russia Finnish knowledge and understanding of its eastern neighbour guarantees that transit traffic passing through Finland is in the most experienced hands, and Finnish operators know the best route for each customer.

Many Finnish companies are also used to operating in Russia via their local offices. Steveco has sales offices in Moscow and St Petersburg. With its local presence, the company can provide even better service to customers operating in Russia. When you are near the customer, it is much easier to understand their needs.

Local knowledge also benefits customers who export to Russia. Laws and regulations and their practical application can fluctuate and often quite quickly, so the advantage goes to operators inside the country.

“Local offices can often be more helpful to customers than offices further away,” says Steveco’s Sami Orimus.

freight train traffic from Kotka to Moscow. Steveco Logistics also handles the final stretch from the Moscow terminal to the customer, and then returns the empty container to Kotka.

It is the customer’s requirements that determine whether road or rail transport is the better option.

“Rail transport is an excellent choice for customers with regular, large deliveries that need to reach their destination at the same time,” says Orimus.

In Finland, you can always find cargo for the return leg.

May 2014

5

Steveco handles logistics

from end to end

Steveco logistics is a one stop shop for all your freight forwarding and logistics needs. text Thomas Freundlich illustrations Shutterstock expert Mia Brunila / Steveco Logistics

origin

transfer

destination

A shipment of home electronics products awaits

At the port of Rotterdam, the container is

At the customer’s warehouse, the container is ­unloaded

transport at a factory in China.

discharged from the container ship and loaded onto a smaller feeder vessel.

Rotterdam

steveco is an end-to-end logistics provider with a comprehensive network across the globe. Steveco is the ideal partner for companies looking to streamline their worldwide logistics chains. At Steveco Logistics, a designated contact person is at the customer’s service throughout the entire transportation process. Steveco helps find the best possible route for shipments to any destination.

and the electronics appliances are ­distributed to a shopping centre in Moscow.

Kotka Rotterdam Moscow

Hongkong

2 days in

At the factory, the products are loaded into a

At Rotterdam, the

In Kotka, the

Steveco arranges ground transport for the

container is transferred

container is

container. After the handover from the

to a smaller feeder

offloaded and

shipping company, the required transport

The container

vessel bound for the

transferred to

documents are created. Depending on

arrives at the

port of HaminaKotka in

the Steveco

the discharge schedule of the vessel, the

customs ter-

Finland.

­container yard.

container can often continue from Kotka

minal for dec-

even the same day.

larations and

Moscow

container. The designated shipper completes the

The container is loaded

export declaration. The container is transported

onto a container ship that

continues to

to the port by the shipment closing time to await

transports it to the port of

the customer’s

the departure of the ship.

Rotterdam.

warehouse.

30 days Hong kong – suez canal – rotterdam

2–3 days kotka – moscow

4 days rotterdam – kotka

1–2 days at terminal in Kotka

Steveco returns the empty container to Kotka.

excellent communication lines with port authorities. As an expert consultant to the Finnish Customs administration, Steveco has the latest information on developments in the field, and can serve as a link between customers and Finnish Customs officials. This speeds up the examination of shipments and facilitates the issuance of permits required by EU customs legislation.

Steveco’s strengths include

slow steaming saves fuel

the fast lane

Slow steaming at low engine loads can save

Steveco’s Truck Check

thousands of tons of fuel for a container ship

In service allows the

on a long intercontinental route. Slow steaming

check-in for ground

typically adds approximately two days to the

transport shipments to

transport time between Asia and Europe.

be completed swiftly online or at automats in the terminal.

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May 2014

Steveco has unparalleled expertise

of operating in Russia. The company’s long experience has created a trustworthy partner network with local knowledge that helps customers do business in Russia. The experts at local subsidiary Steveco LLC are always ready to help if any problems arise. Steveco’s agent network also extends into the Far East.

delivered safely Fast and precise logistics depend on a network of reliable long-term partners.

Steveco’s extensive network guarantees that customers’ shipments are always ­delivered to the right place at the right time without complications.

May 2014

7

Contact us When you need comprehensive logistics solutions, contact Steveco Logistics.

Steveco Oy, Sales Senior Vice President Tapio Mattila +358 44 2323 502 tapio.mattila@steveco.fi Marketing and sales

Steveco logistics, Sales Vice President Kauko Saarela Tel. +358 44 2323 402 kauko.saarela@steveco.fi New customers

Sales Director Markus Myllyl채 +358 44 2323 785 markus.myllyla@steveco.fi Forest industry, shipping lines

Key Account Manager Mia Brunila Tel. +358 44 2323 558 mia.brunila@steveco.fi Import

Sales Director Mikko Raki +358 44 2323 325 mikko.raki@steveco.fi Sawn goods, container lines, depot, projects Sales Director Vesa-Heikki Renlund +358 44 2323 335 heikki.renlund@steveco.fi Forest industry, bulk, shipping lines

Key Account Manager Marko Tuokko Tel. +358 44 2323 742 marko.tuokko@steveco.fi Transit, export to CIS and haulage freight Key Account Manager P채ivi Nygren-Laitinen Tel. +358 44 2323 562 paivi.nygren-laitinen@steveco.fi Import, export and transit Key Account Manager Sami Orimus Tel. +358 44 2323 256 sami.orimus@steveco.fi Export

Kouvola

Imatra

Lappeenranta Kotka Helsinki St. Petersburg Riga

Moscow

Steveco Logistics offices

Mailing address P.O. Box 44 FI-48101 Kotka, Finland Visiting address Kirkkokatu 1 (Steveco head office) FI-48100 Kotka, Finland Tel. +358 5 2323 1 Fax +358 5 2323 392

Key Account Manager Alexey Kostenko Tel. +358 44 2323 594 alexey.kostenko@steveco.fi Transit, rail transportation to CIS

In its operating system, Steveco follows the management systems conforming to standards ISO 9001 and ISO 14001 and specification OHSAS 18001.

www.steveco.fi