Port operations

The Group’s Port Operations are conducted by Finland’s leading port operator, Finnsteve. Finnsteve focuses on the unitised cargo services required by regular liner traffic in the ports of Helsinki, Turku and Kotka. It also offers bulk shipping operations in the industrial port of Kantvik.

Helsinki is Finnsteve’s main port, and also the major import and export harbour for unitised cargo in Finland. The fastest sea connections between Finland and Sweden go from Turku. The port of Kotka specialises in the unitised cargo services needed for container transports, including transit containers to Russia. Norsteve A/S, a wholly owned subsidiary of Finnsteve, carries out stevedoring and terminal operations in the port of Oslo.

In 2008, Finnlines’ Port Operations generated revenue of EUR 122.1 (133.2) million and employed an average of 1,006 (1,014) people.

PORT OPERATIONS IN HELSINKI

The most important event during the year for Finnsteve in Helsinki was the transfer to the new Port of Vuosaari on 24 November 2008. All functions previously carried out at Helsinki’s West Harbour and Sompasaari were transferred to Vuosaari in an overnight manoeuvre. Finnsteve stopped operating completely in the older ports on 19 December.

Demolition of the buildings in those ports will begin according to plan in early 2009. Offices and residential buildings are planned for the old areas.

Finnsteve started planning the Vuosaari project in 2004, and actual construction work began in early 2007. The port project was completed to schedule and in line with the overall budget. The layout in Vuosaari is significantly clearer and more efficient than that of the old ports in Helsinki. The investment was very significant in terms of finances and operations.

The port’s four new PostPanamax-size container cranes represent latest technology. They have sufficient capacity and power to cope easily with predictable future growth in container volumes. The number and performance of the port’s new container handlers are optimal.

The new export terminals allow for cargo handling in any weather conditions, as per current regulations. Meanwhile, the new import terminal in the logistics area diversifies and increases the provision of supplementary services.

Stevedoring for ro-ro vessels is easier thanks to new double ramps, so time spent in port can be reduced by vessels if necessary. The layout of the trailer fields is designed to make the car traffic involved in exports and imports much more fluid.

The financial figures for 2008 were negatively affected by the cost of transferring to and starting up the Port of Vuosaari, and demolishing work conducted at the old ports (West Harbour and Sompasaari).

As new operators became involved after the opening of the Port of Vuosaari, competition increased significantly.

The investment into the Port of Vuosaari, totalling almost EUR 100 million on Finnsteve’s behalf, was made during the economic boom, while the port’s opening took place in a downturn. This is a particular challenge in terms of making operations profitable. The new, efficient port provides excellent opportunities for increasingly rationalised and efficient customer service, however.

PORT OPERATIONS IN TURKU

The ramp construction project in Pansio was completed for the Port of Turku on 19 December 2008, and Finnlines’ large ro-ro vessels transferred to Pansio. Two new warehouses and terminal halls were built in the area.

A fire on a rail ferry vessel caused an interruption in rail ferry traffic in December, leading to a fall in the cargo volumes handled. The number of transit vehicles grew significantly, but as the global economic downturn began affecting Russia, a temporary backlog built up in warehouses towards the end of the year. The number of containers handled continued to grow in early 2008, resulting in overall growth over the previous year, despite a fall in volumes at the end of the year.

PORT OPERATIONS IN KOTKA

A project to lengthen the dock in Kotka began in the summer of 2008 and is expected to be complete in early 2009.

In Kotka, the loss of a major client will require special measures during 2009. Problems in transit traffic have significantly reduced the volumes handled in the port.

PORT OPERATIONS IN OSLO

The new port of Sjursøya was opened in Oslo in June 2008. The functional and financial costs of the opening had a negative impact on profits for 2008.

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