MIDNORDIC TRANSPORT STUDY. NECL II project Study 3.4 Summary of Results

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1 MIDNORDIC TRANSPORT STUDY NECL II project Study 3.4 Summary of Results

2 Transport Study Background and Objectives Part of Midnordic Green Transport Corridor project (NECL II) part-financed by EU s Baltic Sea Region Programme Project develops action to enhance transport corridor stretching from central Norway via Sweden and Finland to Russia Transport study focused on competitiveness and development needs of east-west transport chains via Central Finland

3 Midnordic Transport Network

4 Forecast of Russian Imports (excl. oil, coal and raw materials) Russian imports is forecasted to grow substantially in product groups which have notable production in Mid- Nordic regions Product groups suited well in container and Ro-Ro transport, which combines even small transport flows cost-efficiently Import to Russia 211 (1 t) Import to Russia 22 (1 t) Finland Rest of the EU Rest of the World Finland Rest of the EU Rest of the World Graph source: Finnish Ministry of Transport and Communications 213

5 Finnish Port Transport Route Comparisons West-coast ports are competitive, especially in accessibility by rail, compared to HaminaKotka In transport costs, differences between transport modes are small. Electrified rail connection to Rauma is most competitive. Ports liner traffic frequency important for several product groups Ports - Jyväskylä (h, B) Ports - Jyväskylä (, A) Road Railway Road Railway

6 ROUTE STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Kokkola - Container and chemical Central Finland traffic of Port of Kokkola Vaasa- Central Finland Kaskinen- Central Finland Port s roro connections to Sweden Strong in sawn timber transport The forest industry in Central Finland prefers other ports Few connections to feeder ports Lack of liner traffic Ostrobothnia track improvement being finalised Development of Vaasa- Seinäjoki region increases need for east-west connections Possibly new bio diesel factory Postponement of Kokkola-Ykspihlaja rail projects Possible profitability problems with new shipping connections Availibility of financing for railroad improvement Pori- Central Finland Rauma- Central Finland Turku- Central Finland HaminaKotka- Central Finland Port strong in high&heavy transport Overseas connections from the Port of Rauma Central Finland s most important export port at west coast Frequent Ro-Ro connections Frequent liner connections One of the main ports for Unelectrified end of rail connection Not very strong logistics sector in the region Slowest transport times both by road and rail Suitable road connection for special transport Expansion of port and a new container quay Ongoing study on Turku- Tampere connection Congested rail connection Highway 4 part of the European core network Congested rail connection Liner traffic frequency dependent on UPM paper factory Unadequate container ship frequency Diminishing transit volumes increases prices in export container

7 Border-station Transport Route Comparisons Southernmost borderstations between Finland and Russia are best accessible by road and have best road connections on the Russian border Russia plans to partly transfer rail freight from Vainikkala to Imatrankoski route Jyväskylä - Border stations (h, B) Jyväskylä - Border stations (, A) Road Railway Road Railway

8 ROUTE STRENGHTS WEAKNESSES OPPORTUNITIES THREATHS Central Finland- Procument area for The track in most parts Niirala logistics area Niirala forest industry unelectrified Central Finland- Parikkala Uncongested route for freight traffic Central Finland- Imatra/Imatrankoski Central Finland- Nuijamaa/ Vainikkala Central Finland- Vaalimaa Logistics services closeby the borderstation Best accessible border station from Jyväskylä Electrified rail connections Most important route for exports by rail Most important borderstation for exports Only temporary border crossing for imports from Russia In Finland track is mostly unelectrified Lack of logistics services Traffic via Savonlinna by diesel trains Rail capacity Parikkala-Imatra Kouvola s role as a competitive railway hub to Central Finland Congested route Lenght of rail connection Congested borderstation Shortest rail connection to the border, if connection to Elisenvaara restored Transfer of rail freight from Vainikkala Agreement with Russia on exports by rail Rail investment projects in Finland and Russia Combined rail-road transport between Finland and Moscow Development of Vainikkala rail yard E18 road development projects Rail connection requires an agreement between the states Capacity problems on Imatra-Svetogorsk track Rail capacity Luumäki- Imatra, if double track investment is postponed Transfer of rail freight to Imatrankoski route Notable growth in passenger traffic Major traffic growth increases congestion

9 Comparison of International Routes 1 Mid-Nordic route was compared to selected routes between Asia/North America and St. Petersburg Comparison was focused on container transport, where Re-loading is common and even small transport flows are combined into greater volumes

10 Comparison of International Routes 2 New York - St. Petersburg (km) Mid-Nordic route is competitive in transport length in transport between North America and Russia Road Short sea Overseas Major challenge for the Mid- Nordic route is minor container and liner traffic of Port of Trondheim New York - St. Petersburg (d, A) Road 4 2 Short sea Overseas

11 Conclusions (1/2) Transport of the Midnordic Corridor Russian import markets the most potential for the corridor (food, machinery, and chemical exports) Sphere of influence of Trondheim logistics centre most likely to be restricted to Norway and Sweden Transport between Finnish west coast and Central Finland No foreseen major shift of transport flows to west-coast routes The ports of Rauma and Pori are the most competitive ones in terms of land transport routes and shipping frequencies

12 Conclusions (2/2) Transport between Central Finland and border stations For imports of forest industry, functionality of the Niirala and Imatra routes important both in road and rail transport. Role of Parikkala in road transport possible to develop for reasonable costs. Part of rail freight transport from Vainikkala to Imatrankoski route increases need to improve costefficiency of latter route In order to avoid congestion at Vaalimaa and Nuijamaa, exports by road need good alternative routes

13 Development Objectives for the Midnordic Corridor for 22 Objective 1 MIDNORDIC IS A LOGISTICS QUALITY CORRIDOR FOR EASTBOUND EXPORTS The area has well-performing and safe transport connections to the most important border crossings of imports and exports and destinations in Russia INDICATOR Transport time h Transport costs Export volume t/a The Midnordic Corridor creates cooperation-oriented and competitive transport chains to the Russian markets 2 MIDNORDIC IS SELF-SUFFICIENT IN LOGISTICS SERVICES Logistics service companies located in the Midnordic regions provide sufficient and high-quality services serving the needs of local business life 3 RAIL FREIGHT TRANSPORT HAS A MAJOR SHARE IN MIDNORDIC LOGISTICS An increase in the share of rail freight transport decreases traffic congestion and environmental impact Rail freight terminal services enable developing competitive rail freight in domestics transport as well 4 MIDNORDIC IS A COMPETITIVE LOCATION FOR EXPORTING INDUSTRIES Midnordic is a competitive location for exporting industries - Forest, machinery, food, and chemical products industries Value of production in transport and warehousing Company satisfaction in surveys % Share t/tkm % Number of rail freight terminal and their throughput t/a Value of production and exports /a

14 Suggested Actions for Developing East-west Midnordic Corridor Transport Routes N:o DESCRIPTION 1a Improvement of cross-border traffic between Finland and Russia Improvement of speed and safety at road connections, especially in Russia Faster cross-border procedures 1b Improvement of export cooperation to Russia and development of export concepts in collaboration with Midnordic partners Setting up Nordic export partner group Utilisation of logistics centres in combining exports flows of SMEs Studies on further potential in logistics synergies 2 Enhancement of logistics service markets 3a 3b 4a 4b Studies on adequancy of service supply Ensuring of prerequisites of logistics service providers Preparation for transfer of rail freight transport from Vainikkala to Imatrankoski route Improvement of rail track between Imatra and Imatrankoski After significant traffic growth, improvement of Pieksämäki - Parikkala track Taking advantage of new opportunities in rail freight logistics Potential launch of combined transport service to Russia, potential of rail freight development by new capacity along the Oulu-Helsinki railroad, container freight transport concepts and terminals, increase in rail freight competition Follow-up and enhancement of prerequisites of Midnordic exporting industries Removal of bottlenecks along major export and import routes

15 FURTHER INFORMATION Regional Council of Central Finland Traffic Engineer: Pekka Kokki Phone: Report available at NECL II project homepage:

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