Summary report
FCG DESIGN AND ENGINEERING LTD 30.11.2016 P28756 FCG DESIGN AND ENGINEERING LTD Summary report 1 (34) 30.11.2016
CONTENTS 1. CONTENTS AND OBJECTIVES OF THE ASSIGNMENT p. 3 2. WORKING PROCESS p. 4 3. TRENDS AND BENCHMARKING p. 5 4. BUSINESS CONCEPTS p. 22 5. OPERATING MODEL p. 30 6. PROOF OF CONCEPTS p. 30 7. MORE TOGETHER - 30MILES SYNERGY p. 31 8. LINKS p. 32 9. IN REGIONAL MEDIA P. 34
Planning and compilation of the business concepts: FCG Design and Engineering Ltd (FCG): Jaana Myllyluoma, Markku Nissi, Markku Vähäkäkelä, Pauli Santala, Kristina Salomaa, Mikael Ste- ning Contact persons on the Client’s side (30MILES project): Topi Haapanen, Posintra Ltd, and Taini Rajala, Cursor Ltd
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1. CONTENTS AND OBJECTIVES OF THE ASSIGNMENT
Sustainable business concepts were developed for four Finnish marinas at the Eastern Gulf of Finland during spring and the upcoming summer. The work is carried out under the framework of 30MILES1, a project funded by the EU’s Central Baltic Programme and implemented by a wide range of partners from Southern Finland and Estonia. The project idea is to organise small ports into a cooperating network that offers a safe, interesting visiting point for travellers to explore and enjoy every 30 miles.
Picture 1: 30MILES ports
Launched in March 2016, the efforts are focused on the new guest harbour of Porvoo, and the existing ones of Laivasilta in Loviisa, Tervasaari in Hamina, and Klamila in Virolahti. FCG Design and Engineering Ltd, a Finnish multi-expertise consulting company, was responsible for the process facilitation and con- cept design, ordered by the regional development agencies Posintra Ltd and Cursor Ltd. Municipalities of the target area are also actively involved, and a special working group was established for each marina to provide local expertise and input to the work. The 30MILES research partners - Kotka Maritime Research Centre, University of Helsinki, and Kymenlaakso University of Applied Sciences - brought along additional knowledge. The driving force of the concept design was to study how the participating marinas can develop and maintain their business and services in a sustainable manner. Particular attention was paid to the eco- nomic viability and all-year round availability of the operations, overall service range at the ports, oppor- tunities arising from the location, as well as safety and environmental issues. Social sustainability was also given a high priority - people and the local culture matter. The aim was to study and find new business opportunities, identify possible new customer groups, and also to find functional elements to enhance resource efficiency of the marina operations. The focus was not only on boating, but also the tourist facilities and attractions of the surrounding re- gion. Together with local stakeholders, the aim is to explore how the ports can be connected and inte- grated to service supply and tourist routes in their operating area. A broader perspective on marina de- velopment opens doors to a whole new world of business opportunities and customer groups.
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Different ports, different profiles
Each of the participating ports has its specific starting points and unique features, which all were taken into account when determining their own, distinctive profile. In Porvoo, the current guest harbour will be moved from the eastern side of the river Porvoonjoki to the western bank and therefore represents a completely new destination for planning of facilities and func- tions. Concepts and ideas were needed especially to support and guide land use planning, and latter im- plementation of infrastructure. The ultimate goal is to create a guest harbour of the future, providing a testing environment that allows to pilot and deploy new kind of business operations. The Laivasilta guest harbour in Loviisa is seeking solutions to increase the visitor capacity and improve its services and facilities to meet the needs of bigger boats. Another aim is to develop the marina as a living room for town residents, tourists and boaters, reflecting at the same time local traditions such as construction of wooden boats. The marina area is a part of a comprehensive urban planning process that connects the port with the town center and overall territorial structure at the Gulf of Loviisanlahti. Located right next to the town center, the Tervasaari guest harbour in Hamina hosts both cruise ships and regular boats. The improvement scheme of the harbour goes hand in hand with the ongoing town center development project, which aims, among others, liven up the harbour area, increase its year- round activities and integrate it better with the lively center of Hamina. The existing town plan allows implementing strategically important residential, commercial and service construction projects as well as attractive areas for leisure and recreation.
The Klamila harbour in Virolahti is a sheltered destination, and the easternmost guest marina of Fin- land. In recent years, local associations and companies have been actively developing the port area and its services. The new business concept is expected to give an extra boost to the service structure and business activities at the marina.
Picture 2: Marina areas in Porvoo, Loviisa, Hamina and Virolahti
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2. WORKING PROCESS
Kick off meeting The kick off meeting of the concept development process was held on March 7, 2016, in Kotka. Repre- sentatives of Porvoo, Loviisa, Hamina towns and Virolahti municipality, as well as Posintra Ltd, Cursor Ltd, and research institutes of the 30MILES project attended the meeting with FCG consultants. Formation of the marina working groups A special “marina working group” was established for each guest harbour to steer and guide FCG's work, and to continue the collaboration at least during the whole 30MILES project implementation period. Each working group gathered four times during FCG’s assignment. Other representatives of municipalities and other stakeholders of the marinas also participated in meet- ings where their expertise was needed.
Views and ideas from local people and actors Local residents and stakeholders were invited to open workshops to generate new ideas and concepts for port facility. The events were organised during the spring and early summer of 2016 in Porvoo, Loviisa, Hamina and Virolahti. Idea workshops were organised to collect ideas and views on the development of the marina area: o What should a future marina be, in order to provide . the residents a comfortable living room . boaters and other tourists interesting services . new business opportunities
Concept workshops were focused on refining the ideas: . Target groups / big themes . Service / business concepts . What kind of investments, development measures and resources are required . Joint evaluation of the business potential (based on customer flow and spending) as well as volumes of services
Co-operation with 30MILES partners The work on business concepts was done in close cooperation with local actors and stakeholders of each port, as well as University of Helsinki (Department of Environmental Sciences). A special co-operation and planning meeting was organised with the research partners of 30MILES - Kotka Maritime Research Association Merikotka, Kymenlaakso University of Applied Science, and University of Helsinki. Ms. Tuuli Parviainen from the University of Helsinki participated the working group meetings and work- shops in all target ports. In addition, University of Helsinki carried out during the summer and early au- tumn 2016 a survey to identify user preferences for development of marina services; what factors are relevant in terms of environment and safety, and to which services the small marinas should invest. Preliminary results of the survey were provided to the concept design work.
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Communication All relevant materials were distributed to marina working groups via Google Drive platform. In addition, the consultant drafted two media leaflets in Finnish, Swedish and English, the first at the launch of the assignment, the second after its implementation.
Picture 3: Process and meetings
3. TRENDS AND BENCHMARKING Boating in Finland
Watercraft type Amount 01 Motorboat 185 548 02 Sailing boat 13 967 03 Other 4 429 All 203 944 Table 1: Registered watercraft types 30.6.2016 (Trafi)
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Region Type of watercraft All
01 Motorboat 02 Sailing boat 03 Other Uusimaa 41 056 6 169 1 078 48 303 Varsinais-Suomi 26 862 3 386 706 30 954 Pohjanmaa 13 466 466 244 14 176 Pirkanmaa 12 030 541 370 12 941 Etelä-Savo 12 294 255 255 12 804 Pohjois-Savo 9 023 284 188 9 495 Keski-Suomi 8 951 340 192 9 483 Kymenlaakso 9 054 319 109 9 482 Satakunta 8 848 453 171 9 472 Lappi 7 561 119 276 7 956 Etelä-Karjala 6 885 316 144 7 345 Päijät-Häme 6 614 423 160 7 197 Pohjois-Karjala 6 719 139 143 7 001 Pohjois-Pohjan- 5 926 431 156 6 513 maaKanta -Häme 3 165 26 59 3 250 Kainuu 2 190 26 27 2 243 Keski-Pohjanmaa 1 918 118 52 2 088 Etelä-Pohjanmaa 1 703 5 44 1 752 Tuntematon 1 228 147 55 1 430 Yhteensä 185 548 13 967 4 429 203 944 Table 2: Registered watercrafts by types and regions 30.6.2016 (Trafi) – Porvoo and Loviisa are located in Uusimaa, Hamina and Virolahti in Kymenlaakso
. Region Watercraft All
01 Motorboat 02 Sailing boat 03 Other All, Eastern Uusimaa 9 053 600 183 9836 Porvoo 4 393 350 99 4 842 Sipoo 2 462 142 41 2 645 Loviisa 2 168 108 41 2 317 Askola 13 . 1 14 Myrskylä 7 . . 7 Lapinjärvi 5 . 1 6 Pukkila 5 . . 5 All, Kymenlaakso 9 054 319 109 9 482 Kotka 3 661 204 51 3 916 Kouvola 1 952 13 15 1 980 Hamina 1 476 81 29 1 586 Pyhtää 797 10 6 813 Virolahti 593 9 6 608 Iitti 557 2 1 560 Miehikkälä 18 . 1 19 Table 3: Registered watercrafts in municipalities of Eastern Uusimaa and Kymenlaakso 30.6.2016 (Trafi)
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Type of watercraft 1-6/2016 Change compared with 1- 6/2015 01 Motorboat 2 056 -6 % 02 Sailing boat 20 +82 % 03 RIB 33 -11 % 04 Hydrocopter 1 -80 % 05 Water scooter 444 +20 % 06 Motor sailer 1 - 07 Hovercraft - 08 Other 21 -22 % All 2576 -3% Table 4: First-time registrations 1-6/2016 (Trafi)
According to the Finnish Marine Industries Federation Finnboat, the number of new registrations will continue to grow, but slowly (1-4 %).
Boating trends Boating is affected by many common economic, social and consumer behavior changes and trends. The aging population, individualisation of consumption, environmental awareness, and novelty seeking are reflected in the sector. On the one hand, the boating industry is considered to stick to the traditional, and boaters and practices having remained the same for a long time. New generations and amateur groups are, however, becoming also to boating, for example, unmarried woman are a growing buyer group. Boat ownership is not necessarily the issue, but easy access to wa- ter and sea.
Benchmarking Business concepts and operational models
CASE: Newport, Rhode Island, USA • Approximately 24 000 inhabitants • 100 km to Boston • ”New England summer resort”, nicknames: City by the Sea, Sailing Capital of the World, Queen of Summer Resorts • Could be compared e.g. with Loviisa
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Picture 4: http://www.golocalprov.com/lifestyle/newport-named-top-ten-best-small-city-in-us
Picture 5: http://www.discovernewport.org
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Picture 6: http://www.portbook.com
Newport Yachting Center Marina
Picture 7: http://www.newportyachtingcenter.com
Newport Yachting Center, Weddings & Events
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Picture 8: http://www.newportyachtingcenterevents.com
The Bohlin Weddings and Events
Picture 9: http://www.bohlinnewport.com
Borrowed & Blue, Locally Inspired Weddings
Picture 10: http://www.borrowedandblue.com
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Picture 11: Ympärivuotisia tapahtumia Newportissa
• Surrounded by Rhode Island (the smallest state of USA), most of the destinations are located within 1 hours travel
Picture 12: http://www.visitrhodeisland.com
Picture 13: http://www.mpnmarinas.eu
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Picture 14: http://www.mdlmarinas.co.uk
Picture 15: http://www.transeuropemarinas.com
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Compagnie des Ports du Morbihan Publicly owned marina in France Shareholders: one region, one municipality, and two regions Owns 12 marinas and 4 tourist sites
Picture 16: http://www.compagniedesportsdumorbihan.com
Yacht Havens Group Limited “Established in 1972 and owns nine marina and dry stacks with over 4,000 berths which operate in the UK and the Netherlands. The business model aims at remaining in the eye of the customer a local enter- prise with local staff on the ground. By owning different marinas, it is easier to learn from each other’s strengths.”
Picture 17: http://www.yachthavens.com
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Triton Marin, Galonis Oy Ab Triton Marin offers marina services in Western Uusimaa at Gulf of Finland and Turku Archipelago
Picture 18: http://www.tritonmarin.fi
NewPort concept (Marinetek)
Picture 19: http://www.marinetek.fi/newport/new-port-konsepti
Example: New Port Imatra, jointly owned by the companies Marinetek and Meritaito, which signed an agreement with the Town of Imatra in November 2015 on use of the facilities and provision of port ser- vices for 20 years.
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Marinetek and Meritaito seek together more similar marinas like in Imatra. The business idea is that the municipality admits the port operator the right to operate the in the port area, and transfers the owner- ship of the existing port structures to the operator. The company operates the port during the contract period term and makes investments in order to achieve a modern, well-maintained and safe marina. The aim is to deliver the services by local resources as much as possible. 2
Naantalin Vierasvenesatama Oy The marina of Naantali town was transferred in the end of 2015 Municipal Tourist Services to a new company, Naantalin Vierassatama Oy, established for marina operations. The company has a 20-year service contract, and it has also bought six guest berths and a service station. In addition, the company operates about 200 guest berths and 200 rental ones for the local population. The town still answers for the pedestrian piers and bridge at the harbour area. 3
Guest marinas and waterfront concepts
Picture 20: Tønsberg, Norway
2 http://www.meritaito.fi/uutiset/marinetek-ja-meritaito-kehittamaan-kuntien-venesatamia.html (in Finnish) 3 http://www.kauppalehti.fi/uutiset/uudet-yrittajat-investoivat-naantalin-venesatamaan/tDaxMrzy (in Finnish)
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Picture 21: Lillesand, Norway
Picture 22: Waxholm, ”archipelago capitol” of Sweden
Picture 23: TanumStrand, Sweden
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Picture 24: Toronto Central Waterfront, Source: Archdaily.com
Picture 25: Waterfront: Aarhus, Denmark
Picture 26: Wilkes-Barre Riverfront Park, USA
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Picture 27: Arena, Berlin
Picture 28: Arena, Berlin
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Picture 29: Paprocany Waterfront, Poland
Picture 30: “Sparkly clean floating river pool proposed for Australia’s polluted Yarra River” (Inhabitant.com)
New accommodation concepts, special accommodation
Picture 31: Container hotels
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Picture 32: Boat hotels
Picture 33: Glamping (glamour + camping)
Sharing economy and boating DOKK Dokk is a marketplace and a web store for boating services in Finland. Dokk does not produce the ser- vices, the service providers are private persons and small business in Finland that specialize in various boating and sailing services. https://dokk https://dokk.fi/en/kauppa
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Picture 34: https://dokk.fi
Picture 35: GetMyBoat.com
Picture 36: Sailo.com
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4. BUSINESS CONCEPTS
All four small ports at the Eastern Gulf of Finland have their own strengths and success-factors, which were determined together with the local stakeholders. Own brand profile and target profile were drafted for each of them, but at the same time there is a certain synergy, which was identified in terms e wider 30MILES - “different, yet together".
PORVOO – NEW GUEST MARINA Starting point
Picture 37: Location and planning area of the new guest marina in Porvoo
Strengths and possibilities
Picture 38: Strengths and possibilities in Porvoo
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Profile
Picture 39: Profile of the Porvoo guest marina
Business concept
Picture 40: Business concept of Porvoo guest marina
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LOVIISA - LAIVASILTA Starting point
Picture 41: Location and current services of Laivasilta, Loviisa
Strengths and possibilities
Picture 42: Strenghts and possibilities in Laivasilta, Loviisa
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Profile
Picture 43: Profile of the Laivasilta guest marina in Loviisa
Business concept
Picture 44: Business concept of Laivasilta, Loviisa
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HAMINA – TERVASAARI
Starting point
Picture 45: Location and current services of Tervasaari, Hamina
Strengths and possibilities
Picture 46: Strengths and possibilities in Tervasaari, Hamina
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Profile
Picture 47: Profile of the Tervasaari area in Hamina
Business concept
PIcture 48: Business concept of Tervasaari, Hamina
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VIROLAHTI – KLAMILA
Starting point
Picture 49: Location and planning area of the new guest marina in Klamila, Virolahti
Strengths and possibilities
Picture 50: Strengths and possibilities in Klamila, Virolahti
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Profile
Picture 51: Profile of Klamila, Virolahti
Business concept
Picture 52: Business concept of Klamila guest marina, Virolahti
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5. OPERATING MODEL
Active co-operation is necessary in comprehensive service development of the guest marinas. The ma- rina/area host is responsible for port services, marketing, sales and promotion, compilation and provi- sion of additional services, co-ordination of events, invite other stakeholders to collaborate, and main- tain the co-operation network. Resourcing and responsibilities must be agreed separately.
Picture 53: Operating model for the four guest marinas
6. PROOF OF CONCEPTS
Feasibility of each concept was assessed in terms of business potential, impact on vitality of the local culture, ecological sustainability, and technical feasibility. From business point of view, Porvoo stands out based on already existing attractions and tourist flows.
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Picture 54: Assessment - proof of concepts
7. MORE TOGETHER - 30MILES SYNERGY
The following picture outlines proposals for cooperation between the ports of 30 the MILES project. The first steps can be small and yet allow cost and resource savings, for example, in joint rental and use of equipment and watercraft or joint, innovative procurement of lighting.
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Picture 55: 30MILES synergy possibilities
8. LINKS
(Partly in Finnish)
Trafi, Finnish Transport Safety Agency, boat register, information services http://www.trafi.fi/veneily
Finnish Transport Agency is responsible for most of Finland’s waterways and canals http://www.liikennevirasto.fi/web/en/waterways#.WD4iHtV974Z
Finnish Sailing and Boating Federation http://www.spv.fi
Finnish Marine Industries Federation Finnboat http://www.finnboat.fi
Suomi veneilee, ”Finland is boating” http://www.suomiveneilee.fi
ABC of boating, guide in Finnish http://www.suomiveneilee.fi/veneilyn-aapinen
Marina guide (in Finnish) http://venesatamat.fi/
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“Visit Archipelago” http://www.visitsaaristo.net/fi
Guest marina brochure of Eastern Gulf of Finland (in Finnish) https://issuu.com/porvoo/docs/vene- satamaesite_212x230_2016_web
Marina listings: https://www.marinanow.com/ http://www.marinafinder.com/
ETIS - European Tourism Indicators System for sustainable destination management http://ec.europa.eu/growth/sectors/tourism/offer/sustainable/indicators_fi
UNWTO Guidebook on sustainable tourism development http://icr.unwto.org/content/guidebook-sustainable-tourism-development eneovid: Study on the competitiveness of the recreational boating sector, 11/2015 https://ec.europa.eu/growth/tools-databases/vto/content/study-competitiveness-recreational-boating- sector
Boat Building Programme (Tekes, the Finnish Funding Agency for Innovation Finland, final report) In Finnish: http://www.finnboat.fi/linked/fi/Vene_Ohjelma_Loppuraportti_FI_SVE.pdf http://www.finnboat.fi/linked/fi/VISIO_2025_Tulevaisuuden_venepalvelut.pdf In English: https://www.tekes.fi/globalassets/global/ohjelmat-ja-palvelut/paattyneet-ohjelmat/boat_pro- gramme_final_report.pdf
SmartPorts - Modern and attractive small ports network through cross-border interactive information system, joint marketing and improved port services (ongoing Central Baltic Project) http://database.centralbaltic.eu/project/32
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9. IN REGIONAL MEDIA
(in Finnish) http://www.posintra.fi/uutta-vauhtia-vierassatamille/ http://www.cursor.fi/fi/cursor/tiedotteet/uutta-vauhtia-vierassatamille http://www.spv.fi/uutisarkisto/-/asset_publisher/M5rOSbURB5Nb/content/30miles-%E2%80%93-itai- sen-suomenlahden-vesistomatkailun-kehittaminen;jsessionid=FA0864BAC3FBEF6FB22C8BA80C52778B http://www.lehtiluukku.fi/lehti/kaupunkilehti-ankkuri/_read/13.04.2016/106912.html (pages 4-5) http://www.kymensanomat.fi/Online/2016/04/20/Tervasaaren%20kehitt%C3%A4miseksi%20etsit- tiin%20ideoita%20Haminassa/2016320636664/4 http://www.reimari.fi/2016/04/26/ideoita-on-kasapain-toteuttaminen-vaatii-rahaa/ http://www.fcg.fi/lehti/etusivu/?id=173 http://www.kaakonkulma.fi/2016/09/22/klamilan-satamaan-suunnitteilla-majoitusta-ja-paljon- tekemista/