NEW WAYS NUMBER FOUR | 2013

Ortviken meets the future with new packaging products

Major investments at the port of Umeå

Higher efficiency with SCA-boxes

scalogistics.se 2

EDITORIAL Improve

Dear customer. Christmas is approaching and branded SCA Transforest or Interforest Terminals. another year is coming to an end. 2013 was another We wanted a name that was more self-explanatory, challenging year. Actually the 5th year with slow shorter and easy to communicate. growth in Europe and globally. At SCA Logistics During the year we also noticed that more or we are using the time to prepare ourselves for less all our customers worked very hard to improve the future, working on our competitiveness and their competitiveness, both in terms of efficiency service portfolio. and product development. A concrete effect of our A recent example is our new rail system in customers’ product development is that the average Sweden with a specially designed rail container to order size is gradually shrinking. This makes it maximize payload on Swedish tracks and handling important for us to adjust the layout in warehouses, efficiency at load and discharge. You can read more but also to streamline our administration, since the about it in this magazine. number of bookings per shipped ton is increasing. During the year we have worked with This year we also launched our largest marine hundreds of different activities to improve our tender ever with an annual total of 75,000 TEU on competitiveness in our terminal operations and the market, this made us an even more interesting marine traffic. It is very interesting to see that it is customer for many ocean carriers. always possible to improve processes and activities, As you can see, many activities – both small even if they have been in focus many times before. and large – have been carried out to improve our One such area is fuel efficency on our RoRo vessels. performance. By working with conventional technical solutions, I would like to end this column by thanking monitoring and eco driving, it has been possible all our valuable customers for your continued to reduce fuel consumption by 3% over the year. support and all our employees for the hard work It may not sound huge, but with a high annual you have put in to make sure that we remain the fuel consumption and the sulphur directive coming preferred supplier. into play in 2015 – every tonne of fuel counts! Season’s Greetings to One and All. We are also continuing our never ending efforts to streamline our cargo handling and administrative processes. This year our terminals took another step forward as average productivity increased by 4%. This summer we changed our company name to SCA Logistics. The aim was to have a common name for all our companies, which were earlier Magnus Svensson, President SCA Logistics

NEW WAYS | NUMBER FOUR | 2013

Publisher Editorial staff Cover photo: Printing Comments New Ways is printed at an Nils-Johan Haraldsson Björn Lyngfelt SCA Tryckeribolaget, Sundsvall SCA Logistics AB, FSC certified printworks Henrik Fälldin Box 805, SE-851 23 and on FSC certified paper. Editors Erika Wiklund Translation Inlay Sundsvall, Sweden. Throughout the production Mats Wigardt Matthew Frackowiak Semantix SCA GraphoSilk 90 g. Tel. +46 60 19 35 00 process, the environmental Carl Johard Lena Zetterwall [email protected] impact is kept to an absolute Jennie Zetterqvist Mikael Högström Production Cover minimum, with a view to Frosting Cocoon gloss 200 g. promoting responsible Kommunikationsbyrå use of the world’s forests. 3

Team SCA’s new racing boat Team SCA, based on Lanzarote, continue to prepare for Volvo Ocean Race 2014–2015. Their newly developed racing boat Volvo Ocean 65 (VO65) was also recently delivered.

Everybody involved in the team is excited now confirmed and they are all eager to get The sailing team must also focus on to finally be working with the boat that to know every aspect of the VO65 and push strengthening their bodies to be fully will take the all-female crew around the the boat to its limits. prepared for the challenge ahead. The crew world starting in October next year. – It is our goal as a team to bring the members have tailored fitness programmes – The delivery of the racing boat was a best possible boat to the starting line, so it and train 5–6 days a week to reach their landmark moment in our project, says Joca must be tried and tested in all conditions individual top shape within a year. Signorini, one of Team SCA’s coaches. by then, says Felix Schliebitz, the team’s Seven of the eleven crew members are mechanical engineer.

Did you know… There is over 5.5 km of rope on “The delivery of the racing boat was a landmark board a VO65. And that does not include the mast! moment in our project.” Text: Jennie Zetterqvist. Photo: SCA 4 Text: Mats Wigardt. Photo: SCA / Lars Lindh

Infrastructure improvements in Umeå

“One less bottleneck”. This is how SCA Logistics President Magnus Svensson ­summarises the electrification­ of the railway line between the Holmsund marshalling yard and the port. More efficient ­logistics and lower costs will strengthen both the Port of Umeå’s and SCA Logistics’ competitiveness.

Freight traffic in Sweden has been increas- Important link Great importance for the future ing steadily since the 1970s. And as the SCA Logistics has been one of several im- In collaboration with Umeå Municipality, northernmost container port, the Port of portant players at the port since 1965 and the European Union and the Swedish Umeå plays a vital role for freight traffic to with Terminal Umeå, there is an important Transport Administration, the Port of and from the continent and Finland. link for traffic to Europe. About half the Umeå has invested around 160 million SEK Strategically situated in an expanding port’s total freight volume, largely consisting in a development project of great impor- region of the country, the port handles of timber products, recycled fibre and con- tance for the future expansion of the port. about 2.3 million tonnes of freight every tainerboard, passes through our terminal. Not least as regards Umeå’s increasingly year. Its catchment area covers northern – This is why it is extremely important important role as a logistics hub in the Sweden, northern Norway and northern that the logistics both to and from the port north of Sweden is it vital to have a Finland. area and inside the port itself are rational functioning port large enough to cope and cost-effective, Magnus says. with future needs with space for more 5

The purpose of the project is to straighten the E12 highway and build a new, electrified railway line to the ferry berth at the port.

terminals and container storage and for locomotives hauled the trains from there he adds. And one less bottleneck for our new companies to establish themselves. to the port. Being able to drive the train all traffic to the continent. the way with the same locomotive means And Curt Kristoffersson, CEO, New electrified railway line less switching and lower costs for traffic Port of Umeå is very happy to be able to The so-called Brohamn project was inau­ at the port. offer his customers rational, time-saving gurated in mid-November, putting another – Every wagon movement and every and more environmentally­ sustainable piece of the transport system called the shunt costs money, Magnus goes on. Lower freight handling. Nordic Logistic Corridor in place. costs strengthen our competitiveness and – Efficient logistics is a prerequisite Briefly put, the purpose of the project make the port more effective. for all production in the north of Sweden, is to straighten the E12 highway and he says. build a new, electrified railway line to More sustainable freight handling the ferry berth at the port. Electrification – And it’s also an enormous stride forward See also www.umeahamn.se. will contribute to faster, safer and more for more environmentally friendly logistics, environmentally friendly transportation in the port area. – Electrification is also what concerns us most, Magnus says. And in a very positive way. “Efficient logistics is a prerequisite for all Stronger competitiveness Electric locomotives were formerly used production in the north of Sweden.” as far as Holmsund station and diesel 6 Higher efficiency with SCA-boxes

Half the number of departures, a better working environment and reduced environmental impact – but with the same amount of cargo transported as before. This will be the result of new, specially designed containers that SCA Logistics has begun using on the Piteå-Umeå-Skövde route.

The late 1990s saw the introduction of the transportation to the west coast by vessel, Less departures Text: Mats Wigardt. Photo: Sjöquist PA so-called SCA Logistics shuttle from Piteå says Margaretha Gustafsson, Terminal More powerful locomotives, longer trains and Umeå to SCA Logistics’ terminal in Manager, SCA Logistics Umeå. and maximum tonnage, result in halving Skövde. Southbound, containerboard is of the number of departures, whilst the transported from Munksund and Obbola New load carrier became the solution environmental impact is reduced. Tonnage for delivery to customers in Norway, The final solution was to develop an entirely increases from 1,200 to 2,000 gross tonnes Denmark and southern Sweden. In the new load carrier, the SCA box, together on a 600-metre train. On the Munksund- opposite direction, recycled fibre is with container manufacturer Cronos in Umeå route the tonnage increases from transported to the mills in the north. Gothenburg. approximately 1,200 tonnes to 2,450 tonnes. – More freight per metre of train, Margaretha explains. We can now load as much on 20-metre wagons as we did before “We can now load as much on 20-metre wagons on 31-metre wagons. as we did before on 31-metre wagons.” The 220 boxes that have been ordered will now gradually be put into operation and it is estimated that the old system Pursued new alternatives – An enormous venture, says Margaretha. will have been completely phased With loads in both directions, the system This solution will allow us to secure quality out by the end of November. was unique when it was put into operation. and keep costs down at the same time, – Definitely a system SCA Logistics’ Skövde terminal handles she goes on. with a future, says about 150,000 tonnes of containerboard The reels of paper are loaded directly Margaretha. and 160,000 tonnes of recycled paper from the production line over to the every year. new boxes, which have been specially But expensive repairs to railway wagons designed for optimal, efficient loading of and soaring freight cost led us to seek new container­board. The boxes are owned alternatives. by SCA Logistics and placed on an rail – We searched for alternative solutions container chassis rented from new such as different types of wagons or operator Hector Rail. 7

change in emissions with the new train

Energy consumption is estimated to fall by 26% compared to previous system designs. This saving is a result of larger trains, fewer departures and energy recovery to the system. Source: Hector Rail.

Change in emissions with • 35% lower Non-methane hydrocarbon • 36% lower sulphur dioxide 1 new SCA LOGISTICS train: emissions (smog, damage caused emissions (acidification, damage

• 34% lower CO2 emissions (climate change). to health). caused to health). • 36% lower particle emissions • 35% lower carbon dioxide emissions • 37% lower nitrogen emissions (combustion-related). (greenhouse gases, climate change). (acidification, eutrophication, smog). 8 9 A reliable ferry connection means better possibilities Text: Jennie Zetterqvist. Photo: Wasa Line in the Kvarken straits

Umeå Municipality’s and the City of Vaasa’s jointly- owned shipping company NLC Ferry has been operating ferry services across the Kvarken straits for a year now. Punctuality, reliability and increased capacity characterize the route and plans are now afoot to build a completely new ferry with a eco- friendly profile and ice-breaking performance.

NLC Ferry operates services between Umeå and Vaasa. The public know the company as Wasaline, previously called Vasabåtarna until May of this year. 10

NLC Ferry took over responsibility for daily traffic between Umeå and Vaasa in January 2013. The services were previously operated by RG Line, who went bankrupt in 2011. The bankruptcy estate then became responsible for the operations. Unsatis­ factory maintenance led to problems with the engines and machinery, which on numerous occasions caused delays or cancelled crossings. There were therefore great hopes that the new ownership picture and the long-term image that was presented would ensure a more reliable ferry line. NLC Ferry’s CEO Jan Teir describes 2013 as a start-up year where the emphasis has been on getting to know the “old but “Good infrastructure and greater capacity that new” ferry WasaExpress, whilst living up gives us scope to grow means new possibilities to the customers’ expectations. – Safety and reliability are at the top to think ahead and develop business.” of our list of priorities. Our customers must be able to rely on departures being according to the timetable, which we have succeeded quite well with, he says. SCA Logistics transports approximately have been met and we are now much more Reliability has highest priority 70,000 tonnes of products from the con­t- certain of being able to fulfil our undertak­ WasaExpress has in recent years been used ainer­board factories in Obbola and ings towards our customers, she says. with charter traffic in the Canary Islands Munksund across the Kvarken Straits to under the name of M/S Betancuria. The the service warehouse in Vaasa every year. Greater capacity vessel can accommodate 1,500 passengers At the Port of Umeå, the terminal is means more possibilities and the car deck has room for 450 cars or responsible for all stevedoring activities, When the old ferry could not operate to 1,150 metres of trucks and trailers, which which involves loading and unloading over schedule, SCA Logistics was forced to is twice the capacity of the previous ferry. 800 vessels a year. transport its products by road via WasaExpress also has four new diesel Margaretha Gustafsson, Terminal ­Haparanda to reach the warehouse in engines instead of only one. Manager, SCA Logistics Umeå has great Vaasa in time. In addition to delays and – In 2014 reliability will continue to confidence in the new ferry operator. higher costs, this also had a negative be prioritized, which we hope will lead to – Everything has gone well all year. impact on the environment. more bookings, especially on the freight The ferry has very different punctuality – In our business, we are constantly side, says Jan Teir. hence reliability is high. Our expectations working to find new environmentally

FACTS about Kvarken Multimodal Link Kvarken Multimodal Link is an EU-funded a high degree of multimodality and high system more efficient, both economically collaborative project between public and operational reliability. The project comprises and from an environmental point of view. private stakeholders on both sides of the a transport system for both freight and pas- • Make the region more attractive in the Kvarken Straits. The objective is to upgrade sengers and has been developed by the City marketplace. the transport route across the straits of Vaasa and Umeå Municipality. • Secure long-term operational reliability. between Sweden and Finland and at the • Introduce innovative technologies and same time meet international demands for Objectives of the upgrade are: solutions and disseminate best practices an environmentally friendly and economi- • Design and develop a new ferry for Kvarken. within the European Union. cally advantageous transport system with • Make the ports and the regional logistics Source: Kvarken Council 11

SCA recognized in climate index for fourth time SCA has qualified for the Climate Disclosure Leadership Index (CDLI) for the fourth year in a row.

CDLI is managed by the independent an acknowledgement that SCA has the non-profit organization CDP and highest performance on systems for highlights the constituent companies reporting climate related data. within the Nordic stock exchanges that – It also shows that we manage risks have displayed a strong approach to and opportunities related to climate corporate governance in respect of change in the right way, he says. climate change disclosure practices. The achievement was announced in This year SCA took part in CDP’s the CDP Nordic 260 Climate Change climate change programme and Jan Report 2013, which can be found at Johansson, SCA President and CEO, www.cdp.net. sees the qualification for the index as

sustainable alternatives. It is therefore not good at all to transport goods by road when we had planned to transport them by sea, which is much better from an environmental point of view, Margaretha continues. Since the warehouse in Vaasa operates a 24-hour service, i.e. guaranteed delivery to the customer within 24 hours of placing an order, reliabile transportation is of the utmost importance to SCA Logistics. The fact that WasaExpress has increased capacity means that Margaretha Gustafsson considers it to be an advantage for the future. – Good infrastructure and greater capacity which gives us scope to grow, provides us with new possibilities to think ahead and develop business, she says.

A completely new ferry in seven years’ time The plan is for WasaExpress to continue in operation for another seven years and then be replaced by a completely new ferry with a ecofriendly profile, sufficient ice-breaking capacity, that runs on LNG. A pilot study is being conducted within the EU-funded Kvarken Multimodal Link collaborative project in which the City of Vaasa, Umeå

Municipality, NLC Ferry, SCA Logistics Text: Jennie Zetterqvist. Photo: SCA Jan Johansson, SCA President and CEO. and 13 other partners are participating. 12

Backman-Trummer has been operating in Finland since 1882. The parent company has 40 employees in Vaasa and at the containerboard terminal and annually handles approximately 70,000 tonnes of containerboard for SCA Logistics.

A strong partner in Vaasa

SCA Logistics’ cooperation with Backman-Trummer in Vaasa is of strategic importance for both companies. Customer-adapted logistics solutions are increasing annual consignments of primarily steel from Rotterdam to Vaasa and Backman-Trummer expects this growth to continue. – We offer financially sound transport solutions and there is definitely a potential for ­volumes

Text: Jennie Zetterqvist. Photo: SCA to increase, says Bernt Björkholm, Director Freight Forwarding at Backman-Trummer.

As one of SCA Logistics’ six associated serve SCA Logistics and they serve us, Backman-Trummer goes back 130 years and terminals, Vaasa is an important part of the among other things via their terminals in has a clear focus on international business. network which includes the main terminals Europe, Bernt Björkholm says. – We operate as a traditional transport in London, Lübeck, Rotterdam, Sundsvall and logistics company that offers full and Umeå. The Backman-Trummer transport 24-hour service guarantees deliveries service here in Finland, Bernt goes on. and logistics company has operated its On behalf of SCA, Backman-Trummer When it comes to imports, for example terminal in Vaasa since 2000. Today the receives incoming cargo from Umeå, stores of steel and other heavy industrial materials, personnel handle approximately 70,000 the goods and transports consignments Backman-Trummer uses SCA Logistics’ tonnes of containerboard annually. to customers in Finland and to a certain system vessels. The cassettes are loaded in – We have always felt that our coopera­ extent also in the Baltic countries. The Rotterdam and after arrival in Umeå, they tion with SCA functions extremely well. customers receive their products within are transported on to Vaasa via NLC We maintain a good dialogue where we 24 hours of ordering from SCA in Sweden. Ferry’s services. 13

“Our cooperation with SCA is a symbiosis that benefits both parties. And above all it means advantages for our customers and that is the most important thing.”

– Our cooperation with SCA is a symbiosis new solutions. First we have to ensure that – With its larger cargo deck and room for that benefits both parties. And above all they find our solutions and then they need more passengers it satisfies the region’s real it means advantages for our customers to be confident enough to switch from their needs better. and that is the most important thing, existing systems, Bernt continues. Bernt continues. New ferry well-adapted Sees great potential in transporting steel to the company’s operations The company began shipping steel and other In combination with the frequent ferry heavy industrial materials six years ago. services between Umeå and Vaasa, the Volumes from Rotterdam have increased cassette system allows competitive logistics from year to year and currently amount to solutions of high quality that leave a small 20 cassettes per week and Bernt has good carbon footprint. reason to believe that this development NLC Ferry is a new operator on the FACTS will continue. Umeå-Vaasa route, having started up just Backman-Trummer is a major port – We are constantly working to offer the a year ago. The switch has run smoothly service to new customers and we are confident for Backman-Trummer. operator and freight forwarder on the that we will see an increase next year as well. – We felt that the freight side functioned west coast of Finland, with extensive The cassettes’ loading capacity of 60 ton­- well with the former shipping company and so logistics solutions through ports such as nes is one of the main advantages of trans- far this has continued with the new company. Turku, Kokkola and Vaasa. Backman- porting by sea compared to trucks, which We also believe that this situation will con- Trummer is in turn part of the KWH can load 25 tonnes. tinue since two cities own the company, says Group, a conglomerate with four – But we have to remember that it Bernt Björkholm, who feels that the present separate divisions. takes a little time for customers to seek ferry is better suited to its operations. 14

SCA Ortviken meets the future with new packaging products SCA Ortviken ventures into entirely new paper products: Sustainable Packaging. Taking the step into the packaging market is also a step into the future for one of Europe’s biggest paper mills that has been producing newsprint for 55 years. Text: Jennie Zetterqvist. Photo: SCA – We are hoping that SCA Ortviken’s new products will do well and that we can give them the ­service they need to succeed with their venture, says SCA Logistics President Magnus Svensson. 15

After several years’ development work, – Östrand’s sulphate pulp is completely All newsprint passes through SCA Logistics SCA Ortviken in Sundsvall, Sweden is chlorine-free, which is very good for Sundsvall and so will the new packaging launching its new packaging products Sustainable Products and product safety in products. Splendo, Operio and Puro under the contact with food, says Hans Pettersson. – We are naturally hoping that SCA ­collective name of Sustainable Packaging. Ortviken’s new products will do well and – After a period of intense effort it’s Sustainability a highly topical issue that we can give them the service they need really exciting to launch the products on Östrand’s products also leave a small to succeed with their venture, says SCA a large scale. I really believe in our new carbon footprint and the pulp factory is Logistics President Magnus Svensson. products that I am convinced have great also situated close to SCA Ortviken, which The administration and handling of the potential to grow, says Hans Pettersson, is an advantage for both the environment new products will at the same time mean Business Development Manager for New and cost-effectiveness in the products’ some changes. The packaging products’ Products at SCA Ortviken. manufacture. In an age when sustainability logistics will have entirely different pre­- issues are becoming increasingly important requisites than the well-established deliv- Characterised by high as each day goes by, our Sustainable eries of Ortviken’s reels of newsprint that environmental compatibility Packaging venture is highly appropriate. SCA Logistics has long experience of. The products stand out principally through This was confirmed for Hans Pettersson – We know newsprint, says Magnus a high environmental profile, high opacity when he took part in the year’s biggest Svensson and goes on: and very good printing characteristics. They packaging fair, “FachPack”, in Germany – By comparison, the Sustainable Pack- can be used as both packaging materials in in September. The sustainability of SCA’s aging products will at least to begin with themselves and as a protective surface on products caught the interest of many involve considerably smaller consignments different board materials, for example visitors to the fair. and more booking per tonne shipped, which makes handling a great challenge for us as regards administration. We also “Our packaging products are particularly need to ensure that we are alert to the suitable for storing food since we have new requirements from the customers. 100% control of the raw materials.” Might well be the products of the future Some customers are already under contract Solid Board that among other things is – As we all know, the wood fibre is a to purchase Ortviken’s products and more used in water-resistant troughs for fruit part of nature’s ecocycle that we borrow are on the way. Test consignments have and vegetables. The products can also be and then give back again. Our packaging been sent and SCA Logistics is happy to used to make micro-corrugated board for products are particularly suitable for see that the Sustainable Packaging range meal cartons on aeroplanes. The board storing food since we have 100% control is now being launched on a large scale. consists of several layers, all of which of the raw materials, he goes on. – It makes great demands on us and can be supplied by SCA. we see that as a challenge and part of Listening to what customers want our development. These might well be Based on extensive knowledge SCA Logistics currently ships Ortviken’s the products that create the volumes that SCA Ortviken has been manufacturing entire production, which can amount to we will live on in the future, Magnus newsprint as its main product since as long a maximum of almost 900,000 tonnes rounds off. ago as 1958. Development of the product annually. offering has its origins in the decline in The products have high demand for newsprint in recent years, opacity and very good printing mainly as a result of a weaker economic characteristics. outlook and the fact that the Internet has taken over much of the advertising market and readers’ time. The paper in the packaging products is based on the technology, machines and extensive knowledge in the area of newsprint that can be found at Ortviken. The difference compared to traditional newsprint is that the packaging products are reinforced with sulphate pulp from Ortviken’s sister factory SCA Östrand. 16

“Our container vessels normally take the Kiel Canal route both southbound and northbound.”

The Kiel Canal – the world’s busiest man-made waterway

The Kiel Canal links the North Sea and the Baltic and is the the world’s busiest man-made waterway. Almost 100 km in length, the canal saves SCA’s container vessels a lot of time and makes transportation more efficient for all of northern Europe. Text: Jennie Zetterqvist. Photo: IStockphoto Zetterqvist. Photo: Jennie Text:

Plans to build a canal between Brunsbüttel the Baltic Region and the rest of the world. years later work began to increase its width on the Elbe and Kiel’s Holtenau district on The vessels gain time and can save money to 102 metres and make it 11 metres deep. the Bay of Kiel existed as long ago as the through not needing to take the longer In September 2013, an average of 81 vessels 16th century. But it would take until 1895 route round Skagerrak at the northern tip a day chose to navigate the Kiel Canal. until it was completed and the Kiel Canal, of Denmark. SCA Logistics’ ContainerExpress passes or the Nord-Ostsee-Kanal as it is called in through the canal twice a week. Germany, could be opened by Kaiser Wil- The obvious route for Container Express – This can save both time and money. helm II. Today the canal is an important When it opened, the canal was 67 metres Their draught would otherwise force base for shipping between the countries in wide and 9 metres deep but just some ten them to sail via the Great Belt and with 17

Traffic through the canal

50 000

40 000

30 000

20 000

10 000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0

The Kiel Canal is the most heavily used artificial seaway in the world. The graphic shows the total number of ships that passed through the canal from 1996–2012.

The Kiel Canal in figures

• Opened in June 1895. • Is today 102 metres wide and 11 metres deep. • Took 8 years to build. • Vertical clearance is 40 metres. • Was originally 67 metres wide and • Can accommodate vessels with a beam 9 metres deep. of 32.5 metres and 9.5 metres draught. • Excavated and dredged between For more statistics and figures visit 1907 and 1914. www.kiel-canal.org.

the tight schedule that our weekly service Enormously important however, the canal needs to be modernised. operates to we need the shorter route, for European shipping Local representatives of ports, shipping says Magnus Wikström, Head of Marine The canal is at the same level as the sea companies and trade and industry are Transportation, SCA Logistics. and there are locks at both ends to compen- demanding among other things that a fifth sate for the tide. The average vessel saves lock be built, that the two large locks at around 250 nautical miles by choosing Brunsbüttel be modernised and that the The right route in bad weather the canal instead of rounding Denmark, eastern section of the canal be straightened SCA Logistics’ RoRo vessels may also in which makes the route extremely popu- and deepened, writes the Swedish maritime some cases choose the Kiel Canal route. lar and queues can occur at times. Last magazine Sjöfartstidningen. Sometimes the vessels dock at Lübeck and year, almost 35,000 vessels, not includ- – Preserving and upgrading the canal as the Kiel Canal route is then unavoidable. ing pleasure craft and other small vessels, part of Germany’s transport infrastructure is And when, for example, weather conditions sailed through what is the world’s busiest a national obligation and fully necessary to are critical or when a lock passage time in man-made waterway. maintain the competitiveness of our economy London has to be met, the canal route may – The Kiel Canal is enormously and our ports, says Axel Mattern, Managing be the best choice. important for SCA Logistics and for all Director of Port of Hamburg Marketing. – This is up to the captain. But if a storm shipping in northern Europe, Magnus says. is approaching that will mean a headwind across the North Sea, he will choose the Kiel Maintenance is needed route. Otherwise it’s always better for our to secure the future Ro-Ro vessels to go round, Magnus says. To ensure its existence in the long term, 18

A German fire chief with a Text: Carl Johard. Photo: Marc Grein Swedish accent With his broad experience of both shipping, ports and land transportation, Jörn Grage gives intermodality a face. Jörn has been SCA Logistics’ ­Terminal Manager in Lübeck for about a year.

Growing up in Hamburg on the River Elbe, sidiary I was responsible for the sales and jointly-owned company to develop and close to one of the world’s largest container imports from Australia, New Zealand, market Swedish-German rail transportation, ports, he developed an interest in ports and USA and Canada to Germany. he went to work there. vessels. Influences from mass media also In the late 1980s, when international – I thought it was a very exciting project played a part. shipping was going through a serious crisis, and it gave me the opportunity to add to and – When I was a young boy at school Jörn was lured over to the Port of Hamburg expand my knowledge of logistics at sea, there was a TV series about a shipbroker who brokered the often family-owned vessels on Germany’s river system. It “I have developed a distinct safety mindset which I have looked like an exciting life and profes- sion and that was probably where my also brought to my new job at the Lübeck Terminal.” interest in what was to become my future career was awakened, says Jörn Grage, Manager of SCA Logistics’ Terminal and HLLA, a leading container terminal in port and on land with knowledge of the in Lübeck. operator in Hamburg. railway sector, he goes on. – I was made responsible for their Began his career as a shipbroker marketing division for the Scandinavian A great challenge After leaving secondary school he studied countries. My duties also included a In September 1993 Jörn began there and to be and later became a shipbroker close market exchange with the Port of was assigned responsibility for sales of and agent for a number of international Stockholm, he goes on. steel, furniture and food transportation shipping companies, such as ABC In parallel with his work, Jörn studied from Germany to Sweden. Four years later Containerline N.V. and United Arab economics with an emphasis on marketing. he was head-hunted by his biggest customer Shipping Company UASC. When the German and Swedish railways BTL, Bilspedition’s railway arm, which – At Containerlands German sub- were looking to set up the EU’s first bilateral at the time was called Scandinavian Rail 19

FACTS

Name: Jörn Grage. Age: 48. position: Terminal Manager, SCA Logistics Lübeck. Lives: House in Delingsdorf. Family: Wife and two sons, 9 and 11 years old. Interests: Skiing and spending time with his family. Deputy Fire Chief in Delingsdorf’s volunteer fire brigade.

Cargo AB, later to merge with Schenker and the possibilities we can also offer them as he also mentions the most immediate Rail Logistics and Forwarding. through our system as regards northbound upcoming challenges: – My task was to start and build up an cargo. For the last 20 years I have worked – Maintain and increase our high level organisation for them in Germany. I was 32 with transportation from Germany to Sweden of productivity, attain our financial goals and it was a great challenge for me, which and I really feel that I have something to and make our operations more efficient to I accepted and succeeded with. When I left, contribute here. I have built up knowledge attract more northbound traffic, he says. I was DB Schenker’s representative for rail of this market that may be of great help to The terminal mainly deals with Ro-Ro transportation in Scandinavia, Germany, us in the future, he goes on. traffic but also some container loading and Austria, Switzerland and Benelux, he says. unloading. Believes the Lübeck terminal The terminal has a 35,000 sq m Closing the circle has a bright future storage area. Jörn has been SCA Logistics terminal The terminal in Lübeck, which specialises – We have a special area for storage and Manager in Lübeck for about three month. in forest industry products and is shared stuffing of the overseas containers. We can – When SCA offered me the post I did with Metsä Board, cooperates very closely do all loading and transshipping indoors, not hesitate in the slightest because this with Lübeck Hafen. The terminal’s total which means that we are independent of would give me the opportunity to come annual volume amounts to almost 1.3 million the weather. closer to the roots and bring together all tonnes, of which SCA Logistics’ share is The Lübeck terminal is also very well the competence I had amassed over the 650,000 tonnes. Southbound traffic is situated geographically. years. As Terminal Manager in Lübeck I mainly forest industry products and north- – Already today there are serious am involved in both terminal operations bound recycled fibre and automobile parts. bottlenecks and traffic limitations on at the port, maritime transportation and – Here in Lübeck the quality of our the road and rail routes from Germany land transportation by both road and rail. work in the terminal is outstanding, a and Denmark over the Öresund Strait to I am well acquainted with what customers level which it is very important to continue Sweden. Today we are the most southern on the continent and in Scandinavia want to maintain, says Jörn, at the same time port on the Baltic. We can offer a short 20

route from northern Europe to the continent. It is also a only a short distance New record for from the continent across the Öresund Strait to Scandinavia. We have good rail and autobahn connections and our area Swedish timber alone has 3.3 km of railway line.

Early interest in Sweden exports to China Jörn Grage likes new challenges and oppor- Text:Jennie Zetterqvist. Photo: SCA tunities to use his enormous creativity to Swedish timber exports to China will reach record levels find new logistical solutions for customers this year. Forecasts are pointing to more than twice the in different industries and sectors. – I like working with people with an 2012 volume of approximately 150,000 cubic metres of international background, and getting to sawn timber products. know new people from other fields and This development is largely due to an increase in industries with different challenges and cultures. demand for high-quality pine timber for carpentry work, Jörn speaks almost perfect Swedish and interior fittings and furniture. his interest in Scandinavia took root when he was very young. Anders Andersson, Vice President – Above all if we can reverse the trend – When I was a young boy my family Marketing Direct Sales at SCA as regards building in wood, which and I often spent our summer holidays on Timber, regards China as an exciting was once the traditional way of build- the Danish island of Läsö, where we stayed country because of its rapidly growing ing in China but which has almost with a Danish family and after about two imports of sawn timber products. disappeared in recent years, he says. weeks I could speak Danish with them. – China is today one of our 5 or 6 Source: Skog & Industri. That is also where my interest in northern most important markets. We have a European culture was born, he goes on. great advantage in that we have been 450 000 Over the years he has also taken established in China for a long time 300 000 Swedish courses and read quite a few and have built up competence about

Swedish books. the Chinese market. 150 000 2014 – If you can speak English and German Anders feels that there is good 2012 2013 (forecast) 0 and our north German dialect, Swedish is potential to increase exports even Cubic metres of exported sawn timber not far away, he says. more. products to China from Sweden.

Deputy Fire Chief When Jörn Grage is not working he is at home with his wife and two sons, 9 and 11 years of age, in their house in Delingsdorf, a small village with 2,500 inhabitants on the road between Hamburg and Lübeck. In Germany, Delingsdorf is famous for its strawberries. For the past 30 years he has also been involved in the village’s volunteer fire service, where he is now deputy fire chief. Here again, he is involved with people with different backgrounds and education, who work together to resolve serious problems, often in extreme situations. – I have developed a distinct safety mindset which I have also brought to my new job at the Lübeck Terminal. Luckily for us, we’re not called out many times a year, he rounds off. 21

SCA supports typhoon victims in the Philippines andText photo: SCA On November 7, the Philippines was hit by the worst typhoon so far measured over land. More than 11 million people are believed to have been affected by Typhoon Haiyan and survivors are in desperate need Joséphine Edwall-Björklund, SVP Corporate Communications, SCA. of food, water, medical care and shelter. All contributions are needed.

SCA as a company contributes by sup- – We are making this donation to help the typhoon victims. The initiative was taken porting Médecins Sans Frontières’ (MSF) rescue effort and provide aid and comfort while images from the hardest hit areas were emergency fund with a financial donation. to the victims of this terrible disaster. still appearing on the television screens. – We are deeply saddened to hear of the In addition to the donation to MSF, – I’ve never been so touched. You want loss of life and devastation caused by the SCA is providing hygiene products to the to save the whole world. That’s not possible, typhoon, says Joséphine Edwall-Björklund, affected areas. but small contributions can help a lot too, SVP Corporate Communications, SCA and SCA Logistics employees also took an says Thomas Nordin, truck driver on the continues: initiative to donate money for the benefitof terminal in Sundsvall.

SCA included in WWF’s Environmental Paper Company Index SCA is recognized by the WWF for leadership in transparency for disclosing its ecological footprint in the WWF Environmental Paper Company Index 2013.

Early in 2013, WWF invited 70 of the Manager of WWF International’s pulp and world’s most important and strategically paper work. relevant paper manufacturers to participate – Responsible sourcing, manufacturing in the third edition of its Environmental operations with a low impact on the climate Paper Company Index (EPCI). SCA is one and innovative and resource-efficient of 25 pulp and paper manufacturers who products are all focal points for SCA’s accepted WWF´s invitation to show leader- development as an international company, ship in transparency and to disclose its says Kersti Strandqvist, SVP Corporate ecological footprint. Sustainability, SCA. We warmly welcome SCA scored 92% (max 100%) in initiatives such as this by WWF as it helps respons­ible fibre manufacturing, 68% in us on our path towards continuous improve­ clean manufacturing and 53% in reporting ment of our operations and products. and EMS. The EPCI started in its current form – More important than the scores in 2010. Participation has increased from achieved is the transparency shown by the 5 participants in 2010, to 15 in 2011 and participants. Companies that declined to now 25 in 2013. SCA has participated in all participate have missed a chance to three indexes. demon­strate the efforts they might be A list of all 70 invited companies and

undertaking to address environmental the results for the participating companies Text: SCA Essentials. Photo: WWF issues, says Emmanuelle Neyroumande, can be found at www.panda.org/epci2013. 22 The circle closes for our own vessels The predecessors of SCA Logistics’ three Ro-Ro vessels, M/S Obbola, M/S Ortviken and M/S Östrand were the sailing ships built by the mill owners in Sundsvall. During the timber industry’s golden age, hundreds of ships were launched here to transport timber products to customers around the world.

Gothenburg is often referred to as Sweden’s Every sawmill owner in Sundsvall there- Ocean-going barque launched in 1874 foremost shipping city. But there was once fore also became a shipowner, with their It was also at the shipyard next to the wharf a time when the shipyards in Sundsvall own shipyards and slipways right next to in Ortviken that the ocean-going barque Text:Mats Wigardt. Photo: IBA Industribild SCA/ were at least as productive as those on the sawmills and factories. “Magnus Huss” was launched in 1874. west coast. – Almost all the sawmill owners in The vessel then made trips between Europe At Sundsvalls Skeppsvarv alone, that lay Sundsvall and the surrounding area were and the USA, southern Asia and the West alongside where present-day Hamnplanen also involved in shipping in some way, says Indies for many years. is situated, around 160 vessels were launched former Sundsvall museum curator Mona In the ship’s diary, which is preserved between 1835 and 1873. The shipyard thus Bornecrantz. in SCA’s archives at Merlo Castle, once contributed to make Sundsvall one of the Fredrik Bünsow’s summer residence, we can country’s most prominent shipbuilding cities. Wanted to control transportation read of hazardous voyages to foreign ports The sawmill owners in the Sundsvall with cargoes of timber produced at the Sawmill owners involved in shipping area who wanted to control transport- steam sawmill at Killingholmen in Ortviken. And it was the sawmill era that was the ation and built their own sailing ships reason for Sundsvall Bay’s almost unique included Fredrik Bünsow at Skönviks AB, The arrival of the steamship concentration of shipyards and shipping shipyard, steam sawmill and pulp factory But after 1885 shipbuilding in Sundsvall companies. owner James Dickson at Svartvik, and came to an end. With the arrival of the There were sawmills on every promon­ wholesaler A F Forsell who owned both steamship it had become more profitable tory, plenty of natural harbours, an abundant a timber business and a shipyard at for the timber industry to ship its products supply of suitable building materials and Ortviken. on vessels other than its own. mill-owners who needed to transport their All three companies, Skönvik, Svartvik It would now take until the 1960s for timber products on vessels of their own – and Ortviken, were later to become part of SCA to pick up where where the mill-owners and customers around the world crying the SCA group, formed in 1929 by merging of the latter years of the 19th century had out for timber and sawn timber products ten smallish forestry companies along the left off shipping their products on their from Norrland. Norrland coast. own vessels. 23

SCA built a new distribution system After having for many years loaded small volumes on small vessels at every small ­factory along the Norrland coast – all in all a total of 25 ports – and then discharging the cargo at 150 different European ports, SCA decided to build a new distribution system with its own terminals and its own vessels. SCA Logistics therefore ordered three specially designed ice-going vessels from the Lindholmen shipyard on Hisingen in Gothenburg. The vessels, M/S Tunadal, M/S Munksund and M/S Holmsund, were intended to operate shuttle services between the terminals in Norrland and on the continent. – In the past SCA only shipped its own goods, with time, demands on efficiency and quality. Cargo is now consolidated with other Forest industry companies says Lars Petersson, Senior Advisor, SCA Logistics who has a solid background in the ship- Bales of paper pulp were bundled in pack- – The new technology meant a trans­ owning industry, among other things as the ages of six, reels of paper were handled formation of the whole handling system CEO of Gorthon Lines, now Transatlantic. with a vacuum hoist and the paper pulp when loading and unloading, says Lars had its own special loading equipment. Petersson. “Just in time” became a concept Fast, efficient handling Sawn timber products were packaged and the schedule was sacrosanct. The new vessels were each of 12,000 tonnes into units for fast, efficient handling. Thirty years later, at the beginning of with straight cargo holds with 90° corners the 1990s, it was time for a new genera- and new equipment for efficient loading “Just in time” became a concept tion of vessels to take over: M/S Obbola, and unloading was installed at the ports. This was a giant step from the manual ­ M/S Ortviken and M/S Östrand, also With all the pieces of the puzzle in place, loading of olden days where muscle known as the white ships. handling was faster, costs were lower and and cargo booms were the only means there was less damage. available.­ The future brings new demands New products brought new demands, weather-sensitive crane handling with cargo-hatches were replaced by Ro-Ro technology with cassettes driven onto the vessels by means of a ramp at the stern. The cargo holds have room for 165 cassettes, each capable of loading 60 tonnes. – What previously took four days to load can now be loaded in five hours if all the cargo is to be loaded at the same port, he goes on. And cargo damage is now almost non-existent. What the future holds Lars is reluctant to speculate on. He says that it is a turbulent industry where anything can happen. Compe- tition and emissions set the price to aim for. On the other hand, he believes that the white ships sailing under the SCA flag will be in operation for another 10–12 years. – But the details can always be honed further, he says. And we save more money by being quick in port than at sea. 24

Collaboration strengthens winter ice-breaking

Russian long-term forecasts are indicating a long, harsh winter season. Strengthened by the new Finnish-Swedish ­collaboration agreement, the Swedish Maritime Administration is prepared to keep shipping lanes open in the Baltic.

The Swedish Maritime Administration is to be assisted by the ice-breaker that hap- equipped to deal with the first ice. When responsible for ensuring that all Swedish pens to be closest, regardless of the vessel’s the situation becomes difficult, Otso and ports remain open all year round regardless destination. The aim of the agreement is Kontio from Finland will probably come of the ice conditions in winter. Shipping to improve access to ice-breakers, shorten to help. Sweden also has four other tradi- must continue no matter the season. waiting times and bring costs down. tional ice-breakers ready to go, including – We can no longer close countries or The agreement was tested live last Oden that is considered to be the strongest coasts as we actually did until the 1960s. winter, which the Swedish Maritime ice-breaker in the Baltic. Oden was form- The logistics situation and maritime Administration classifies as a completely erly rented out as a research vessel in the transportation are completely different normal winter. Antarctic. This provided considerable today, says Ulf Gullne, Head of ice-breaker – We saw that the agreement functioned income but was discontinued after an management at the Swedish Maritime incredibly well, Ulf says. unusually large number of ships became Text: Jennie Zetterqvist. Photo: Sjöfartsverket Zetterqvist. Photo: Jennie Text: Administration. The Swedish and Finnish fleets can in stuck in ice in Swedish waters several Vessels that are suitable for winter principle be regarded as a joint ice-breaker harsh winters in a row. operation are entitled to ice-breaker fleet and the ice situation they will have to – We have agreed with the industry assistance in Swedish coastal shipping deal with remains to be seen. that all our ice-breakers shall stay at waters and in sea lanes between open water – But there are Russian forecasts and home during winter. They are part of and sea lanes protected from sea ice, drift also some from the USA that indicate a Sweden’s infrastructure are needed here, ice or similar ice obstacles. long, harsh winter, he goes on. Ulf goes on. The Swedish Maritime Administration New collaboration agreement Multi-purpose vessels also has two multi-purpose vessels at its strengthens ice-breaking assist in difficult winters disposal: Tor Viking II and Balder Viking. Since 2011 Sweden and Finland have a new The ice-breaker Ale, which at present is In addition to ice-breaking they are also collaboration agreement that allows vessels moored in Luleå in Sweden, is usually best used for anchor handling and towing 25

“If we should have a really difficult winter, we can bring in our multi- purpose vessels as well.”

in off-shore operations. They normally received help immediately. Should waiting operate in the North Sea. times nonetheless arise, they must never Did you know… – If we should have a really difficult be longer than four hours. Last winter, the winter, we can bring in our multi-purpose average was just over two hours. The first Swedish national ice-breaker vessels as well, Ulf continues. – We have many units that can assist was delivered in 1926 and was regardless of whether they have a Finnish originally given the unimaginative Target: 4 hours’ waiting time maximum or a Swedish flag at the stern. Collabo­ name “Statsisbrytaren” (National The Swedish Maritime Administration’s ration with Finland means that we can Ice-Breaker). She was renamed Atle target is for 90% of merchant tonnage use our resources efficiently and ensure in 1929. to be given the assistance they need with that vessels get to where they are bound, no waiting time at all. Last winter, 95% Ulf Gullne says.

Old Norse names All the Swedish Maritime Administration’s Poetic Edda, a collection of Old Norse Oden was the oldest and wisest of all the ice-breakers have Old Norse names. poems. The name is a variant of Attila, gods in Nordic mythology and the name Ale is probably a short form of names like which means “little father”. Frej is the god means “furious”. Ymer is the giant in Alfer and Alrik and may mean “almighty”. of fertility in Nordic mythology and the Nordic mythology, created out of hoar frost Atle is a fictional king mentioned in the name probably means “master” or “ruler”. and sparks. 26 Text: Carl Johard. Photo: IStockphoto Photo: Johard. Carl Text:

SCA Hygiene and SCA Logistics are making a joint land tender in Europe

At the end of the year, SCA Logistics and SCA Hygiene will for the first time execute a joint land tender comprising 70% of all the SCA group’s transportation by land in Europe. In all, the tender involves some 3,000 transportation lanes and a volume of over 260,000 truckloads. – This enormous volume makes SCA a very attractive partner, says Jan Kroek, Global Transport Sourcing Manager at Global Hygiene Supply.

Five years ago Jan Kroek began looking at We carried out a few tenders together using Last year the joint tender accounted for how to make SCA Hygiene’s transportation Transporeon’s e-auction tool. Because of 50% of SCA Hygiene’s total land transpor­­- purchasing more efficient. the very positive results we decided to t­ation, in all involving over 2,000 lanes. – My focus was on tissue transpor­­tation execute a large joint tender for SCA Tissue in Europe. Together with Personal Care in and SCA Personal Care. We have done this An important step Sweden we also began to study whether it every year and our volumes are steadily In 2012 and 2013, SCA Hygiene and SCA was possible to improve joint sourcing. increasing, he goes on. Logistics have continued their cooperation 27

“This land tender will comprise 70% of of SCA’s total annual volume spent on land transportation.”

Work is currently going on to draw up Number of lanes requirement specifications and decide what routes will be included. In principle all 3 000 countries in Europe are concerned. – This land tender will probably be 50% 2 000 larger than last year’s, Jan says. In all, the tender involves some 3,000

transportation lanes and a volume of over 1 000 260,000 truckloads. – It will comprise 70% of of SCA’s total 2012 2013 annual volume spent on land transportation. 0

This enormous volume naturally makes 2012 the land tender involved 2,000 lanes. SCA an attractive partner and we are hoping 2013 it will amount to 3,000 lanes. to achieve better, more attractive prices by trying to reach more carriers in this way, he says. – We expect the transport market to slowly stabilize with less overcapacity. We still One-year agreements fore see further savings but perhaps at a bit SCA Hygiene and SCA Logistics use lower level. Transporeon’s TIContract tool for on-line Another important driving force is to auctions. Over 20,000 different carriers get better performance from the carriers. around Europe take part. – A third driving force is that we want by executing a joint sea tender for overseas – Then we choose which of them we to reduce our CO2 footprint. Here we transportation. This has also given good want to invite, Jan goes on. are trying as far as possible to favour the results. The next step for SCA Logistics is When SCA has completed its preparation railways and multi-modal solutions and to include large volumes in SCA Hygienes’ the tender will be opened and the companies companies with the latest, most modern land tender. can submit their offers. vehicles and engines. – We are implementing a joint tender – The tendering process will run from to be able to achieve further savings for mid-December to mid-January. Then we A common face to the world our group and offer the best possible draw up a short-list per lane based on the But there are also other advantages that competitive services on the market. It is offers we receive. In many cases, personal SCA is looking to achieve by this. an important step to take because compe­ meetings will follow, where we hold more – Showing the European transport market tition just gets tougher all the time, both detailed discussions and finally negotiations. the same face gives the carriers a good picture on the paper and pulp side and in hygiene, The new agreements will then run for of SCA’s transportation and transport needs he continues. one year, from 1 April 2014 until 31 March and how these can fit into their offerings and 2015, he says. their offers. It might also lead to an increase An attractive partner in northbound transportation. SCA Logistics’ and SCA Hygiene’s joint Many driving forces SCA can also improve the whole land tender will comprise a large part of The major driving force behind the joint purchasing process by standardising the the SCA group’s land transportation on tender is of course to reduce SCA Hygiene’s agreements that exist and the demands Europe’s roads, railways and rivers from and SCA Forest Products’ costs. made of all carriers. Sweden in the north to Italy in the south, – Last year we achieved savings of 3–5%, – This is an effective way of learning England in the west and Russia in the east. which translates into substantial sums. from each other, Jan Kroek rounds off. Sender: SCA Logistics AB, Box 805, SE-851 23, Sundsvall, Sweden.

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