Finland - Developing the International Freight Infrastructure

The Finnish economy has been affected by theVuosaari has been designed as a fast gateway port,
global economic downturn, with a contraction ofwith low container dwell times, limited on-site empty
0.5% expected for 2009. Nevertheless the freightstacking and a fast, paperless gate.
services infrastructure is being radically overhauled toThe site also includes a 35 acre logistics park that will
prepare for future growth, with significanteventually be home to over 130,000 square metres
development plans underway at both Finland's mainof warehousing. Nurminen Logistics has been amongst
ports.the first to take up a 11 acre concession and
Although exports of specialised steel products, miningestablish two drive-through warehouses and a
equipment and container handling machinery are stillcovered rail terminal, which will significantly improve
relatively strong in Finland, the paper industry isthe efficiency of freight forwarding.
experiencing difficulties. Facing a double whammy ofThe Vuosaari suburb is also growing rapidly, with a
slowing consumer demand and overproduction in thepopulation of 30,000 set to grow to 45,000 in the
paper manufacturing industry in general, the papershort term and there has therefore been
industry is struggling. Timber and plywood exportsconsiderable effort put into establishing a pleasant
are also being hit heavily because of the sharpenvironment around the port. This has included
slowdown in construction. As the timber industryconstructing a 11 metre high, 1.5km long wall around
accounts for over 15% of Finland's total exportthe whole port area to hide it away as much as
revenues, any downturn here is having a big impactpossible. There have also been lighting towers built so
on the volume of freight forwarding from Finland.that lighting associated with the freight services is
This notwithstanding, it is a time of radical change indeflected away from residential areas, as well as a
the international freight transport infrastructure for1.5km tunnel to separate freight forwarding traffic
Finland, with 2009 seeing the opening of the newfrom residential and other local traffic.
Vuosaari port in Helsinki, following twenty years ofThere has also been a 13.5km rail tunnel constructed,
planning and development. This is actually a first inmainly with the objective of helping to avoid traffic
the history of the European freight services industrycongestion, Initially 10 trains a day are scheduled but
as it is the first time a European capital port hasthis will soon double.
relocated since the advent of containerisation.So, with all this focused activity and planning for
Vuosaari is now the new port for Helsinki and everyexpansion, Vuosaari is set to take the port of Helsinki
shipping company and freight company is keeping ato a new level and establish a new era of freight
keen eye on developments there.forwarding for shipping companies in Finland.
Two main cargo handling areas in the old port haveVuosaari is not however Finland's largest container
been closed down and the freight servicesport. That is Kotka, which is flourishing as a result of
transferred to the new port. The development ofthe growth in Russian transit demand. The two ports
the new port has been a major project, with its totalhave somewhat different profiles. Kotka handles a
cost put at over one billion euros. The move hasgood balance of exports and imports, whereas the
involved massive investment on the part of theinternational freight traffic at Helsinki's port is strongly
shipping companies, with Finnsteve alone contributingimport-led.
more than 100,000 euros. Finnsteve is also introducingKotka has also recently completed a 150 hectare
greater competition in the lo-lo container sectordevelopment for a new logistics site and is planning a
where there are now three container stevedores. Itmajor expansion project that would see capacity
is projected that the 150 acre site at Vuosaari willincreased to 2.5M TEU a year by 2025. The port is
have a capacity of 2M TEU a year. This is roughlybuying adjacent land and studying the development
four times the capacity of the existing port and thisat Vuosaari closely with a view to learning from the
scale of growth will clearly revolutionise freightVuosaari freight forwarders experience.
transport in the area.So with its two main ports undergoing significant
There are also now widespan gantry cranes at theredevelopment, Finland is all set for a bright future at
port of Vuosaari. They are oversized as the accessthe forefront of the freight services sector.
fairway to the port is only 12.5 metres deep.