Freight Services in Finland - To Russia With Love

Freight services in Finland are being transformed bydevelopment will virtually double the size of the
one single key economic driver - the growth incurrent Mussalo development at Kotka. As Kotka
freight transport demand from Russia. Despite thealready accounts for over 40% market share of all
recent short term slowdown of the Russianfreight forwarding in Finland, it is clear to see that this
economy, the underlying demand is positive and thewill make Kotka a giant within the Finnish freight
freight services infrastructure in Finland is expectedservices infrastructure.
to continue to be boosted as the requirement forAnother port in Finland whose fortunes are closely
freight transport increases over the medium and longtied to Russia is Hamina. Hamina is only 35 kilometres
term. Shipping companies and freight forwarders arefrom the Russian border. Its performance this year
therefore keeping a keen eye on developments inhas been the worst of the four main Finnish ports -
Finland.Hamina, Helsinki, Kotka and Rauma. However, the
It is believed by the Finnish government andCity of Hamina and the Finnish Government have just
independent analysts that there will be a long termapproved a vital strategic plan that will help build
demand for a EU based port to handle Russia'sHamina's reputation as a leading Finnish port serving
freight transport and, in fact, this growth is nowRussia. This is a large scale Ro-Ro and container
being seen at the container port of Kotka which hasexpansion project which will set it in good stead for
overtaken Helsinki to become Finland's largestthe future and position Hamina at the forefront of
container port, with an estimated 650,000 TEU thisinternational freight transport and freight forwarders.
year. This reflects a growth of 12% in freightThere is currently only one stevedore operating at
transport through Kotka in the latest year.Hamina, a daughter company of the port authority
The international freight at Kotka is balancedwho prefer to run their own service. However, there
between exports and imports and the containeris every possibility that this will change in future as it
logistics are exemplary in relation to Russian freightseeks to advance its freight services to better serve
forwarding. Empty containers from Russia are backthe evolving needs of the Russian marketplace. Many
loaded with paper products. This is in contrast toa shipping company and freight company is likely to
Helsinki which has import-led international freight. Thislook favourably at sending freight freight through
means empty containers have to be railed to RaumaHamina in future years.
to be filled with paper products for export, incurringAnother factor that will boost Hamina further is that
additional costs and making international freightthe port is now linked to Antwerp. This will streamline
transport that much less competitive for thefreight to Russia from Finland. Hamina offers all
customer.modes of transport to Russia, including regular block
There are four stevedoring companies active intrains, trucking and feeder services to St Petersburg.
Kotka, with Steveco the dominant stevedore andSo although Hamina currently accounts for only 10%
the main stevedore operating within freightof all freight transport in Finland, it is predicted that its
forwarding of forestry products.star will rise in tandem with the underlying growth in
Kotka has completed a 150 hectare development fordemand from Russia. The love affair between freight
a new logistics site at the Palaslahti area and this isforwarders in Finland and the blossoming Russian
part of a long term plan to see freight forwardingeconomy is set to go from strength to strength.
capacity increased fourfold by 2025. The new