NEW WAYS NUMBER TWO | 2017

POWERFUL AND GROWING BUSINESS

Kiel-hauling of shipping

80 million environmental activists to Östrand

Continued turbulence in the container market

scalogistics.se 2

EDITORIAL An industrial eco system

On June 12, the new SCA was reborn after 88 years as an independent forest and forest products company traded on the Nasdaq Stockholm exchange.

The hygiene part of the company is listed The split of the company is a major event, same time, we will put stronger focus on separately as Essity. We are proud to but we as SCA Logistics and a part of sustainability. And often cost-efficient continue as the strong and healthy SCA, SCA will continue to develop cost-efficient solutions, innovations and sustainability and we will retain and build on our good logistics systems including our terminals, interact. Even though we almost never get core values: Respect, Responsibility marine services and forwarding. In fact, support from our politicians, as you can and, Excellence. our focus in developing will be even read on page 16. stronger and with a wider scope. Our old customers are still as valuable, but we will A strong and unique factor to succeed with also to take onboard new customers. our strategy is that SCA Logistics is a part of a solid and sustainable industrial eco The SCA company is “new,” but our system completed with our very important strategy is the same, and we aim to bring co-workers, the ones with the knowledge our customers’ production and products and the ability to make it all happen. closer to their markets and the consumers. This is why we are confident that we To make it possible to compete from a are prepared and ready to continuously distance and to create value. Basically, support our customers and partners. we have to be smarter and find more cost-efficient solutions. We have to focus Bring your copy of New Ways and on innovations in a mature market, enjoy it in the sun. Wishing you all which in itself is not that easy. At the a very good summer!

Nils-Johan Haraldsson Vice President Marketing and Business Development

NEW WAYS | NUMBER TWO | 2017

Publisher Editorial staff Cover photo Printing Comments New Ways is printed at an Nils-Johan Haraldsson Björn Lyngfelt Linda Snell Kaltes Grafiska, SCA Logistics AB, FSC certified printworks and Henrik Fälldin Sundsvall Box 805, SE-851 23 on FSC certified paper. Editors Lena Zetterwall Translation Sundsvall, Sweden. Throughout the production Jennie Zetterqvist Mikael Högström Semantix Inlay Tel. +46 60 19 35 00 process, the environmental Maria Åman Dan Persson SCA GraphoSilk 90 g [email protected] impact is kept to an absolute Kerstin Olofsson Production minimum, with a view to Frosting Cover promoting responsible Kommunikationsbyrå Invercote Creato 260 g use of the world’s forests. 3

Positive decision opens the way for a new logistics park

The Land and Environmental Court has now granted permission to build and operate a container port and intermodal terminal in Tunadal in Sundsvall. The positive decision is a milestone on the way to construction of the new logistics park and one of Sweden’s most important transport hubs can soon become a reality. Text: Maria Åman. Photo: Per-Anders Sjöquist.

“I see the decision as very positive and Environmental Court of Appeal, which the Land and Environmental Court has in requires leave to appeal to be granted. principle accepted the studies we and the “We expect opponents of the project local authority have made. The decision is to appeal against the decision,” Rolf an important milestone for the project,” Johannesson says. says Rolf Johannesson, Executive Vice President, SCA Sourcing & Logistics. “The ability to receive larger Socio-economically profitable The logistics park is part of efforts to vessels is crucial for the forest secure efficient freight traffic and increased industry’s future needs.” competitiveness for the region’s industries. “The ability to receive larger vessels is crucial for the forest industry’s future If the Land and Environmental Court needs and we believe that the planned of Appeal decides to take up the case, operations are socio-economically a final decision will probably be handed Rolf Johannesson, EVP, SCA Sourcing & Logistics. profitable in a long-term perspective,” down in 2018 and SCA Sourcing & Rolf Johannesson emphasises. Logistics estimates that construction for tender ready so we might be able to can begin in mid-2018 at the earliest. begin sooner unless the Land and Construction start in mid-2018 “On the other hand, we’ve already Environmental Court of Appeal decides The Land and Environmental Court’s completed the design phase for the to review the case,” Rolf Johannesson decision may be appealed to the Land and container port and have the request rounds off.

Source: comprend.com. SCA Corporate’s website one of Europe’s top ten Europe’s leading survey of corporate websites is ranking SCA as one of the most popular.

When Comprend* ranked corporate web- places and Eni, Snam and Telecom sites in Europe, SCA in Sweden and Stora Italia sharing first place with 9 Enso in Finland shared eighth place with points each. 7.8 points out of a possible total of 10. *Webranking by Comprend is Europe’s leading survey of corporate Italy dominated, taking six of the ten top websites and the only global ranking that is based on stakeholder demands. Text: Jennie Zetterqvist. Photo: Shutterstock. Per-Anders Sjöquist. 4 products further intoproducts further the future. on creating new, sustainable values from the forest, will while take Essity the hygiene and health splithas into been the two companies SCA and Essity. SCA The forestry business will focus fully SCA is ready for anew in epoch its 90-year near history. hygiene The and forest products business we will now get even greater possibilities to to possibilities greater even now get we will name. SCA the keep will activities forest purely the and industry forest companies. two their in develop able to being areas business two the in advantages greater SCA’s see owners that is decision to the background The of June. month the during place take will split the and April AGM in at the taken was two in SCA to split decision The products on forestry SCA putsfullfocus New sustainable “As an independent forestry business, business, forestry “As independent an 1929 in aSwedish as founded was SCA basis for SCA’s well-invested industry. industry. SCA’s for basis well-invested the is that resource aunique are assets forest The Europe. in land forest owned privately biggest the is which of Belgium, size the almost area an Sweden, northern in of forest hectares 2.6 million owns SCA eco-system Efficient of SCA. CEO and President incoming and Products Forest of SCA CEO and President Vice Larsson, Ulf says ourselves,” and customers of our development the on focus we develop and manufacture pulp, paper paper pulp, manufacture and we develop products, to wood addition In them. with associated values other and employees products, the all as well as assets industry forest SCA’s and all forests include will company The brand. our develop sustainability characterise all production. and efficiency Resource process. second the in used raw material the is process of one biproduct the where eco-system forest industrial an form activities These

“Now we’ll continue to manage and and to manage continue we’ll “Now 5

for packaging and printing, and renewable possibilities for growth within both the energy,” says Ulf Larsson. existing business area and the new one,” says Ulf Larsson. Invest to grow During the last ten years, SCA has invested SCA Logistics safeguards exports SEK 15 billion in its forest industry in SCA will have its headquarters in northern Sweden. One successful example Sundsvall, where SCA Logistics also has of the wood operations is the new saw line its base. This change in the company will New SCA is renewing the well-known SCA logo and will become an efficient, well-invested forest company that “Even if we’re the smaller part of the includes the forest industrial operations SCA Group, we are certainly not a and all forest land that at present is owned by the group. modest operation.”

at the Tunadal saw mill. At present, an not impact on SCA Logistics operations logistic solutions. With an in-depth investment of SEK 7.8 billion is being other than increasing the opportunities experience of the industry’s needs and made that doubles the production capacity on the market for hygiene products when a strategic terminal network and marine of the Östrand pulp mill. the hygiene and health products that were transports, we safeguard the routes out “Even if we’re the smaller part of the previously in the main group now are to the important export market,” says SCA Group, we are certainly not a modest concentrated in the new company Essity. Nils-Johan Haraldsson, Vice President, operation. SCA will be a resourceful “We provide Essity and other players Marketing and Business Development, company also after the split with good in the hygiene paper business efficient SCA Logistics.

Ulf Larsson, President and CEO, SCA.

Synergies between the operations in hygiene and forest industry company SCA have Project director Ingela Ekebro reported to the declined over time. With their historic decision to split the company in two, the owners extraordinary AGM on Helios, SCA’s SEK 7.8 strengthen the opportunities for development of the forest industry company SCA and billion investment in a doubling of the production the hygiene company Essity. at the Östrand pulp mill. Text: Jennie Zetterqvist. Photo: Peter Hoelstad.

6 Essentials + necessities = Essity

The new hygiene and health company will be called Essity and will have a completely new logo. Look at “Essity - How the logotype was developed” on Youtube to see how it was born. 7

HYGIENE MATTERS

Sufficient hygiene is a basic human right. The new Essity continues “Hygiene Matters” is a research report published SCA’s dedicated efforts in essential hygiene issues in their position by SCA that studies and observes hygiene around the world. The report has been released as a global market leading hygiene and health business. six times since 2004 and the latest publication is for the first time in collaboration with the The Essity name is a development of the Essity’s ambitions are clear from the UN organisation WSSCC (Water Supply and words essentials and necessities, which first presentation: Sanitation Collaborative Council). describes precisely what the company “We are dedicated to improving SCA has conducted hygiene education offers: everyday necessities. The vision of well-being through leading hygiene and programmes for many years, reaching millions of Essity is to increase the feeling of well- health solutions, increasing awareness people. Below are some examples from 2015: being through leading solutions in hygiene of what’s essential and providing life’s and health. necessities. Because better health and 107,000 - In Colombia, SCA’s joint-venture Magnus Groth, President and CEO hygiene means being well for people company Familia educated 107,000 expectant of SCA, will become President and CEO and for business.” mothers about motherhood and pregnancy. of Essity once the division of SCA is Familia runs several other educational programs, completed. The company will continue to Increases focus and success such as teaching young girls about menstruation develop, manufacture and sell personal We have sales in around 150 countries and puberty. hygiene products and tissue paper. under the leading global brand TENA in “Hygiene and health are prerequisites incontinence products and Tork in tissue 37,000 - SCA teaches children around the world for a better life. Our products and for major consumers. Other well-known about handwashing and in 2015, 37,000 children participated in different programs. One tool is “Ella’s handwashing adventure,” an app for iPad and Android devices that has become very “In the long term, this will lead to added value popular. So far, the app has been downloaded for the shareholders through an increased focus, 45,000 times. customer benefit and development potential.” 40,000 - In Malaysia, SCA educated 40,000 girls about menstruation and what happens in the body during puberty. The program was designed for primary schools with a focus on girls in the solutions have an essential role to play in brands are Libero, Libresse and Tempo. age range when menstruation often begins. increasing the well-being of people around With their acquisition of BSN Medical, the globe,” says Magnus Groth. Essity has strengthened its position within 33,000 - SCA provided training for 33,000 Essity will be one of the largest buyers the field of health with brands such as nurses worldwide in incontinence and skincare, of kraft and fluff pulp and also continue Leukoplast, Cutimed, JOBST, Delta Cast, for example, at a workshop in India. to be an important customer for SCA Delta Lite and Actimove. Logistics, who handle parts of Essity’s Essity will handle around 85 percent container deliveries for example. of the SCA group’s previous sales volume. The forest products business continuing Personal hygiene – a matter of life under the SCA name has accounted for Many of us take good personal hygiene around 15 per cent. and access to basic sanitation facilities for Magnus Groth is pleased that the development potential as well as enable granted. But many others have limited shareholders responded positively to the respective companies to successfully knowledge and access to clean water, board’s proposal of two publicly listed realise their strategies. We look forward to toilets or hygiene products. Since hygiene companies. Management has been an exciting future for our two strong listed and health actually are a matter of life and working with the division proposal for companies,” says Magnus Groth. death and play a crucial role within social a long time. During the month of June, Essity will and economic development the world over, “In the long term, this will lead to be separately listed on the Nasdaq OMX Essity will continue SCA’s dedication to added value for the shareholders through Stockholm stock exchange and distributed help raise hygiene standards in the world. an increased focus, customer benefit and to SCA’s present owners. Text: Kerstin Olofsson. Photo: Storkship.

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Upgrade in Lisbon SCA Logistics has a new operator at the terminal in Lisbon. Storkship will now be in charge of operations.

“We’ve worked in Lisbon since 1998 transported from Sundsvall to Lisbon and now we’ve switched to a new operator. in intermodal 40 or 45 ft short sea We based our decision on what competitive “A service that makes our containers. On the way to Lisbon they advantages our new partner can give our customers more competitive.” are transshipped in Rotterdam, which customers. We chose Storkship, who have gives a high level of service. many years’ experience of paper products “With our new set-up, we’ll be able to and a high service level,” says Urban deliver a service that makes our customers Häggkvist, Vice President Nordic and LWC paper from the Ortviken mill competitive in a market that geographically Forwarding and Associated Terminals. for distribution to customers in the speaking is hard to reach,” Urban The terminal in Lisbon handles newsprint Portuguese market. The products are Häggkvist goes on. Photo: Wasaline.

9

1 felled tree = 3 new ones For every tree felled three new ones are planted.

90 billion Sweden’s forests are worth 90 billion EuroEuro.

70 000 Sweden’s forests provide work for more than 70 000 people. 16,000 people in forestry, 38,000 Record volumes people in wood and lumber and for Wasaline 23,000 people in pulp and paper. 16,000 Wasaline’s volumes are continuing to grow and the company people in forestry has reported record evels for the first quarter of 2017.

Finnish-Swedish shipping company in units of cargo the increase was 29 per 23,000 NLC Ferry Oy Ab, that markets itself as cent compared to the same period last year. people in pulp and paper Wasaline, has just seen its best first quarter in terms of both passenger and cargo volume since it began operating in 2013. FACTS

All time high on the cargo side SCA Logistics’ transportation 38,000 Between January and March 2017, the on Wasaline (tons): people in wood number of passengers on Wasa Express 2015 2016 and lumber between Umeå and Vaasa increased by 14 Containerboard per cent compared to the same period in 2016. Umeå-Vaasa 57,507 56,550 Recycled fibre Cargo volumes hit an all time high. Vaasa-Umeå 0 1,230 Metres of cargo carried increased by just Total 57,507 57,780 over 22 per cent, tons of cargo carried by slightly more than 13 per cent, and counted Source: Sjöfartstidningen.se. 10

“The project also includes 1.4 kilometres of conveyor belts.”

Thomas Johansson, Project Manager Project Helios. New wood-processing plant as large as twenty football pitches

Sweden’s biggest industrial project where SCA Östrand is investing SEK 7.8 billion to be able to double its production capacity, is continuing according to plan. The new mill will be run up in stages without disrupting production and the next step is commissioning Text: Maria Åman. Photo: Riku Isohella. the new wood-processing plant, due to come into operation on 4 July.

Area-wise, the construction of a new Östrand’s new fibre line and in December logs and begin testing the systems with wood-processing plant is Helios’ biggest assembly of the machinery in the new material and on 1 August we’ll close the sub-project. In total, the building, timber wood-processing plant. Incoming round old wood-processing plant,” Thomas yard and chip store cover an area of 10 ha, timber arriving by truck, train or ship Johansson goes on. equivalent to 20 football pitches, and will in future be turned into chips here in Thomas Johansson, Project Manager for a process that comprises de-icing and Respect for people crucial Project Helios, has overall responsibility thawing of the timber during the winter Helios may be a project where technological for all the work that is going here. season, debarking, chip production and solutions are the central aspect, but combustion of bark. Thomas Johansson leads the work with a The wood-processing plant “The project also includes 1.4 strong focus on people, getting everyone of the future takes shape kilometres of conveyor belts that will to work towards the same goals and On 1 November 2016, a completely new transport bark to the bark incinerator everyone feeling happy while at work. timber yard came into operation when the and chips to the new digester,” Thomas “It’s crucial to the project to respect old yard made room for the construction of Johansson says. one another, understand that we think and communicate in different ways,” Checking out underway says Thomas Johansson. At present, an electrical check-out is being Much of a project manager’s work DEADLINES conducted to ensure that all electrical consists of building relationships, signals and everything electrical are turning challenges into opportunities 2 May Mechanical check-out begins. functional before start-up on 1 June. and daring to ask questions that leads 4 July Acceptance test begins. “We started a bit early by beginning to development. 14 July Acceptance test ends. the ventilation check that according “When we face a challenge, I usually 1 Aug Old wood-processing plant closes. to our plans was to have begun on 22 ask, ‘How can SCA help?’ and ‘What May,” Thomas Johansson says. can SCA do better?’ The answers carry “After Midsummer we’ll load the first us forward,” says Thomas Johansson. 11 80 million environmental activists to Östrand

SCA Logistics has been commissioned to transport 80 million biocarriers to the Östrand pulp mill in conjunction with the gigantic investment at the mill. Biocarriers act as “home” for the bacteria that purify

the water in the production process and they will be delivered over the course of a year. A powerful Text: Kerstin Olofsson. Photo: Jonathan Hart. group of environmental activists in other words.

SCA is investing SEK 7.8 billion in the Biocarriers will be shipped from Kiel as Facts about the shipments Östrand pulp mill in order to double its good as once a week from the end of April 80,000,000 biocarriers will be transported production. It is one of the biggest ever this year until this time next year. They will from Kiel to Tunadal by SCA Logistics’ industrial investments in Sweden and the be transported in large sacks, known as “big RoRo vessels. new mill will be world-class as regards both bags”, that contain 2.6 cubic metres each Shipments will be made continuously product quality and environmental standard. and after unloading in Sundsvall they will over a year as the biocarriers are be taken by road to a warehouse in Timrå. manufactured. Bacteria purify the water “They’ll be stored there until the new When Östrand doubles its production water purification plant in Östrand comes the mill also needs to double its capacity into operation in spring 2018,” Henrik “We’ll be able to deliver a to purify the water used in the process. Fälldin goes on. And it is there that the so-called biocarriers Not all the projects at Östrand will have service that makes our come into the picture. The purification been completed by then, but the water customers more competitive.” is namely biological, which means that purification plant will be starting up a bacteria take care of breaking down the little early, in June. various substances in the wastewater. The biocarriers are packed in big bags The wastewater is collected in a large basin Problem-free transportation that contain 2.6 cubic metres each. and for the bacteria to be able to thrive and Thomas Johansson is very pleased that 1,539 big bags will be transported – reproduce, large numbers of biocarriers are SCA Logistics is in charge of transporting approximately 4,000 cubic metres. put into the water – small “plastic barrels” the biocarriers. When the biocarriers have been measuring about 3 x 3 centimetres that float “It’s perfect to have SCA resources that unloaded at the terminal in Sundsvall, around in the water and that the bacteria can solve this for us. The more SCA SCA’s internal trucks will transport them attach themselves to. A single biocarrier Logistics can take responsibility for the to a warehouse in Timrå. They will make might be home to several million bacteria. better. And it makes transporting such a total of 72 truckloads. “One cubic metre of biocarriers creates large volumes that much easier,” he says. 200 square metres of space on which the bacteria can grow,” explains Thomas Johansson, Project Manager for Helios’ water purification project. 4,000 cubic metres of biocarriers will be transported to Östrand. They will be Shipped every week delivered in large plastic sacks. This is The biocarriers are manufactured in southern what a biocarrier looks like. Germany and will be transported using SCA Logistics’ logistics solution from the terminal in Kiel to the terminal in Sundsvall. “It’s a matter of 4,000 cubic metres of biocarriers so volumes are substantial. The company that is to make them will have two machines turning out biocarriers continuously for a whole year,” says Henrik Fälldin, Sales Manager at SCA Logistics. 12 Continued turbulence in the container market

“The situation in the container market has improved slightly but it is far from normal. There is a major shortage of capacity and booking difficulties,” says Magnus Wikström, Head of Marine Transportation at SCA Logistics. 13

The turbulence on the container market goes on. New alliances in the shipping industry have come into force but the instability concerning service and availability in exports to Asia have not yet been eliminated. “We’re still concentrating on solving problems as they arise and wait out the periods of uncertainty that still prevail,” says Magnus Wikström, Head of Marine Transportation at SCA Logistics.

Since the shipping companies entered into quite yet, SCA Logistics chooses to wait “No-one want to suffer delays or price Text: Jennie Zetterqvist. Photo: Linda Snell. new constellations where four alliances with new solutions and focus on safe- increases and we very much regret the became three, with fewer players involved, guarding capacity. situation. We are grateful for the patience there has been a lot of confusion on the “It’s only when the new alliances have of our customers and we are trying to be export market between Europe and Asia. completely fallen into place that it makes sure to notify what is happening, but Full order books and difficulties getting the sometimes it is unfortunately difficult goods out affected the entire export industry. even for us to give a clear indication The imbalance between demand to move “No-one want to suffer because it is so difficult to get information,” cargo and the supply of ships has caused says Magnus Wikström. financial stress for years. And yet it became delays or price increases.” How this will develop is difficult to even more strained when the South Korean assess right now but a normalisation must shipping giant Hanjin went bankrupt in take place. August. Many shipping companies also sense for us to possibly change our “We continue to follow the new chose to cancel departures in conjunction schedule,” says Magnus Wikström. alliances and the capacity in the market with the Chinese New Year as a result of the very closely and take our business great uncertainty and poor financial position. Great understanding decisions as things develop. The most The market situation is well-known and effective thing now is to act on the basis Improvement in China SCA Logistics has been met with a great of the rapidly changing situation,” says The new alliances came into force in April. deal of understanding from its customers. Magnus Wikström. The ships reached Europe as planned and the first ships back to Asia departed in mid-April. “Much must fall into place before the situation can be described as stable,” NEW ALLIANCES OF CONTAINER SHIP OPERATORS Magnus Wikström points out. This has happened: A recent wave of deals is reducing the number of lines, while South “We’ve seen a clear improvement in Korea’s Hanjin Shipping last year became the first big container ship operator to enter China, but there are still some problems bankruptcy since 1986. The shake-up involves almost all the top 15 lines in mergers and new on other Asian markets,” he says. industry alliances. They will be replaced by two new groupings: The Alliance of five container “It’s been difficult to get a clear message ship operators led by Hapag-Lloyd and the Ocean Alliance of four companies spearheaded by from the shipping companies about the France’s CMA CGM. The 2M alliances of Maersk Line and Mediterranean Shipping Company capacity they have and what schedules are may also change if Korea’s Hyundai succeeds in its attempt to join. applicable. Uncertainty has prevailed right to the end due to new players and new partners for shipowners.” The Alliance Ocean Alliance 2M + HMM* 2022 2022 2020

Safeguarding capacity 2 1 21 Above all, changes in Rotterdam in combination with large volumes during the spring have caused delays for SCA Logistics. From having previously operated at most two overseas terminals with their container feeders, it can now be a matter of calling at up to six terminals. Since the New alliances to take effect in late April. operators have not established their plans 14 Text: Jennie Zetterqvist. Photo: Göteborgs Hamn. Göteborgs Zetterqvist. Photo: Jennie Text: Law change can solve port conflict

The trade union conflict at the container terminal in the port of Gothenburg continues to have a great impact on Swedish exports. Capacity has dropped from the normal 10,000 containers a week to around 4,000. The Government is now considering introducing a change of the law to stop the strike action.

Normally, six out of ten containers that are Stora Enso wrote in a letter to the side and in alternative ports,” says Magnus imported or exported to and from Sweden Government that they are considering Wikström, Head of Marine Transportation pass through Scandinavia’s biggest port – leaving the port of Gothenburg if a solution at SCA Logistics. Gothenburg. Over the past year, severe to conflict is not found soon. The Chamber disruptions have occurred as a result of a of Commerce in west Sweden, who daily Welcome government inquiry conflict between the container terminal’s receives calls from distraught businesses, The conflict situation is complicated by operator APM Terminals and the describes the situation as bordering on the fact that there is already a collective dockworkers’ union. critical for society. agreement in the port, with the Swedish Transport Workers’ Union. This means Severe impact on Swedish export that the employer cannot enter into This drawn out conflict is severely another collective agreement but the hampering Swedish export businesses. “The situation is very worrying Swedish Dockworkers’ Union has been “The situation is very worrying and it and it is unacceptable that the offered an affiliated collective agreement is unacceptable that the dockworker’s to the existing one. Due to the fact that union is playing with high stakes and is dockworker’s union is playing the employer is still being punished by risking industrial competitiveness and with high stakes.” strike action, the government has employment. Our member companies announced that they want to look suffer significant additional costs and over the legislation and possibly price rises, delayed deliveries and that Shipping companies are working flat restrict conflict laws. foreign customers find new suppliers out to find appropriate solutions, some by Industrial employers welcome the instead of Swedish industry,” says Per avoiding Gothenburg entirely, where at the inquiry to be started shortly. Hidesten, President of the industrial time of printing there was a trade union “Obviously, we’re pleased about employers representing close to 1,000 embargo and a lockout as a response from the government’s initiative. Reputable member companies in the Swedish the employer. companies with negotiated collective basic industry. “We can see ocean shippers avoiding agreements should not have to be the port of Gothenburg in so far as it is exposed to extremely costly strikes and Major players sound the alarm possible. But it’s not easy to find viable blockades that impact directly against Many significant players have sounded the alternatives for large volumes. Other the competitiveness of industry,” says alarm this spring. Forest industry group bottlenecks arise quickly on both the shore Per Hidesten. of road indicated by the Swedish Transport Transport Swedish by the of roadindicated 7,850 the to only BK4 kilometres restrict to proposal government’s the rejecting thus country, the throughout weight gross 74 to permit tons decided has Parliament capacity. bearing with sufficient weighing up to 74 tons will bepermitted on all Swedish roads combinations than today. that means rigs truck from July This 1 BK4 called class that permits heavier vehicles vehicle and 3May,On parliament voted to introduce anew capacity bearing capacity with bearing on allSwedishroads for74-tontrucks Victory and associated Terminals. associated and Forwarding Nordic President Vice Häggkvist, Urban Text: Maria Åman. Photo: Linda Snell. Linda Photo: Åman. Maria Text: classify the roads that meet the new bear new the meet that roads the classify to Administration Transport Swedish the commissioned 2017. has government The 1July on effect into law comes new The routes transportation efficient towards way the On of up to 74 weight tons. agross with to trucks open be should network road what decide should capacity bearing that proposal committee’s traffic to road. shipping or rail from transferred be would freight that no risk was there where Roads Administration. Parliament instead agreed to the to the agreed instead Parliament ing capacity requirements before that that before requirements capacity ing “This is astep in the date. Then the heavier trucks can can trucks heavier the Then date. begin to drive on Sweden’s on to drive roads. begin direction. To able to create be direction. efficient transportation routes routes transportation efficient right direction.” right through Sweden in both the the both in Sweden through “This is a step in the right right the in astep is “This north-south and east-west east-west and north-south directions or vice versa, the the versa, vice or directions road network needs to be to be needs network road seen as an entity,” an as Urban says seen Häggkvist, Manager Nordic Forwarding, SCA Logistics. SCA Forwarding,

- kinds of forest. kinds by different covered at present is 31%, or hectares 4billion area, land earth’s of the third one Roughly area is covered by forest thirdOne of the earth’s land quarter. first in 119.3 tonnes million to increased volume throughput total The adecrease. showed bulk liquid other and products oil mineral only commodities, 11 the different Of striking. particularly is 10.8%(8.8% by weight) (TEU), by volume last year. period same the in than of Rotterdam Port the through passed goods more 2017, of quarter 2.0% first the In in first quarter. throughput grows by 8.8% Rotterdam’s container in Rotterdam 8.8% growth One third The growth in the container sector sector container the in growth The 69 % 69

31 % 31

15

Source: The Food and Agriculture Organization of the United Nations (FAO), 2010. Source: portofrotterdam.com. Photo: SCA. 16

“The decision to increase the fees is diametrically opposed to politicians’ ambitions to strengthen shipping’s competitiveness and reduce fossil emissions.”

Magnus Wikström, Head of Marine Transportation at SCA Logistics. 17 Keel-hauling of shipping is causing Swedish industry to list

On 1 January 2018 the Swedish Maritime Administration intends to introduce a new model for fairway dues and pilotage. “We are extremely critical of the administration’s decision, which in effect will kidnap the country’s shipping and industry. Sweden will lag behind in international competition with a list in Text: Maria Åman. Photo: Linda Snell. the business balance,” says Magnus Wikström, Head of Marine Transportation at SCA Logistics.

The decision to introduce the new charging competition in the marketplace are one what ice-breaking will cost in 2018 until model, which will come into effect on way to go,” says Magnus Wikström. a very late stage,” Magnus Wikström 1 January 2018 is based on the European continues. Commission’s approval of the charging Tight schedule makes “Increases that affect Swedish industry model, where the Commission does not budgeting difficult are appearing thick and fast. First the new consider the model to lead to any uncer- The levels in the new charging model, sulphur directive. And in addition to the tainties from a state subsidy perspective. which will be differentiated on the basis 8% increase in fairway dues on the vessel “These are substantial increases and of the environmental class that a vessel is portion and the goods portion at the amount to millions of SEK, which will hit assigned, will not be completed until some beginning of 2017, pilotage fees were raised primarily RoRo vessels extremely hard. time in August or September. “This is by 5% to cover the cost of ice-breaking that The costs will affect Swedish industry, very late and will make our budget work the state had previously paid for in its which will have to pay the price with difficult. For example, we will not know appropriation,” adds Magnus Wikström. reduced competitiveness and ability to invest as a consequence,” Magnus Wikström observes. CONSEQUENCES Net tonnage classes The proposed new charging model will hit coastal and short sea shipping, which is already extrapolated upwards subject to tough competition with for example truck transport, particularly hard. SCA The changes to the charging model will Logistics has services to for example ports along the Swedish coast and to Germany, affect both fairway dues and pilotage fees. the UK and the Netherlands. Calculations show that the proposed charging model would The proposed availability fee for a pilot double SCA Logistics’ fairway dues and pilotage fees compared to the present systems will depend on a vessel’s net tonnage class, and would also have serious detrimental consequences for the company’s traffic and meaning in practice a higher availability Swedish industry’s competitiveness. fee for a larger vessel than for a small one. “We think this is very strange. The pilot’s job, to sit and wait for a vessel, is the same regardless of the size of the vessel NEW ENVIRONMENTAL CLASSIFICATION to be piloted. If fees are to exist at all, there should be a fixed charge and not a system The new environmental classification is not as attractive as it sounds. As far as SCA Logistics of fees that are extrapolated upwards,” is concerned it is primarily a matter of changes to tonnage classes, the pilot availability Magnus Wikström goes on. mark-up, and changes to frequency rebates that will be subject to increases compared to the “If the Swedish Maritime Administration present systems. Even if SCA’s vessels were to be placed on a higher level according to the cannot manage its task of operating more environmental indexing part of the charging model, other parts mean that the result will be an efficient pilotage, the Swedish model needs overall increase in the charges. The proposal does not provide better incentives to invest in to be reviewed. Privatisation and free climate- and environment-improving measures, for example the use of catalytic converters. 18

Diametrically opposed that the ship-owners who have catalytic ambitions to strengthen shipping’s to political ambitions converters will turn them off,” competitiveness and reduce fossil The new charging model has been criticised Magnus Wikström predicts. emissions by shifting freight from road by the industry for not having the environ- “The decision to increase the fees is to rail and shipping,” he rounds off. mental control effect that the Swedish diametrically opposed to politicians’ Maritime Administration expresses as one of its ambitions. “The incentive for environmental FEES investments to be placed in an environmental class would as far as Sweden’s fairway dues and pilotage fees: The Swedish Maritime Administration is a public SCA Logistics’ RoRo vessels are concerned enterprise with a return on capital target that requires the agency to operate at a profit and mean a basic investment of about 6 deliver the surplus to the state. The fairway dues finance the Swedish Maritime Administration’s million SEK and an annual operating cost activities and operations at the same time as most of the EU’s member states do not have any of approximately 12 million and that as an state fairway dues. Sweden’s present fairway dues are therefore a competitive disadvantage environmental rebate on the fairway dues for merchant shipping in Sweden and for Swedish trade and industry. (Source: Svensk Sjöfart) the incentive would be 501,034 SEK, which is totally unreasonable. The result will be Environmental impact analysis of fairway dues

The Swedish government has decided to commission government agency Traffic Analysis to make an environmental impact analysis of the Swedish Maritime Administration’s proposed new fairway dues. Within the framework of the current self-financing principle, Traffic Analysis will propose adjustments that give better environmental and climate benefits and make it easier to attain the goal of shifting long-distance road cargo to shipping.

The Swedish Maritime Administration is a Cargo from road to rail and shipping public enterprise and is principally financed “Sweden is to be one of the world’s by the charges paid by merchant shipping first fossil-free welfare states. To achieve in Swedish waters. To ensure that the this we all need to make an active effort Swedish Maritime Administration’s to reduce emissions. Part of that is to accounts are in balance by 31 December use transportation in a smarter, more 2017 at the latest, the government efficient way, for example by transferring Source: Swedish Government Offices. Photo: Kristian Pohl/Regeringskansliet.

“Sweden is to be one of the world’s first fossil-free welfare states.”

commissioned the agency to design a freight from road to rail and shipping,” model for charges and dues. The Swedish says Minister for Infrastructure Maritime Administration’s principal Anna Johansson. income is fairway dues and pilotage. The final report is to be presented Traffic Analysis will now conduct an by 1 July 2017. environmental impact analysis of the proposed new fairway dues. Minister for Infrastructure Anna Johansson. 19

New rules for safe storage of dangerous goods at Port of Sundsvall SCA Logistics Sundsvall now offers greater possibilities for storage of dangerous goods in containers. The old ten-day time limit has been abolished Text: Maria Åman. Photo: Linda Snell. and dangerous goods can now be stored securely for indefinite periods.

“Thanks to a new regulatory framework “Our customers in Sundsvall are mainly * IMDG: International Maritime we are now free to store IMDG* at the local industries transporting dangerous Dangerous Goods Code. ** IMO: The International Maritime terminal for an unlimited time, which goods to their plants. These are generally Organization, The United Nations allows us to offer new and existing chemicals that are needed in production specialized agency with responsibility customers an increased service,” says and with the increased possibilities for for the safety and security of shipping and safe storage we can offer more cost- the prevention of marine pollution by ships. *** The term transportation includes loading effective and logistics-wise smarter and unloading, storage and other handling solutions,” Mikael Högström sums up. that constitutes part of the goods’ movement. “With the increased possibilities for safe storage we can offer more cost-effective CLASSIFICATION OF and logistics-wise smarter DANGEROUS GOODS solutions.” For transportation purposes, dangerous goods are divided into nine classes depending on the goods’ physical and chemical properties:

Mikael Högström, Sales Manager, Class 1 Explosives. Marketing and Business Development Class 2 Gases. at SCA Logistics Sundsvall. Class 3 Flammable liquids. Class 4.1 Flammable solids, self-reactive International regulatory framework and solid desensitised explosives. The IMO’s** international IMDG code Class 4.2 Substances liable to regulates transportation*** of packaged spontaneous combustion. dangerous goods list, regulations for Class 4.3 Substances which, in contact limited quantities, regulations concerning with water, emit flammable gases. packaging and tanks and dispatch and Class 5.1 Oxidising substances. transportation regulations. Class 5.2 Organic peroxides. “The classification regulates how the Class 6.1 Toxic substances. goods are transported and we transport Class 6.2 Contagious substances. eight of the nine classes. We don’t handle Class 7 Radioactive substances. radioactive substances and a few of Class 8 Corrosive substances. the sub-categories,” Mikael Högström Class 9 Other hazardous substances Mikael Högström, Sales Manager, Marketing and emphasises. Business Development at SCA Logistics Sundsvall. and items. Text: Maria Åman. Photo: Paul Smith.

20 Powerful and growing business

Shipping of high-grade refuse derived fuel (RDF) from Europe to Sweden where used materials are recycled and turned into energy at district heating plants is a growing business. SCA Logistics is strengthening its competitiveness with recycling and waste companies by offering functional, efficient and environmentally conscious logistical routes. Reduced costs and environmental benefits are the result. 21 22

Sorting and recycling of used material Clean, sustainable transportation Cost-effective are prerequisites for a sustainable future. The established RoRo solution reduces CO2 The landfill charge in England was Using combustible materials for energy emissions and keeps the bales together from raised to £86.10 per mt on 1 April and in district heating plants as an alternative beginning to end, loaded on cassettes. a further increase can be expected next to depositing them in landfills reduces Sorted and sealed in plastic and with strict year. The intention of increasing the emissions of greenhouse gases. It also demands regarding handling during loading charge is that players in the market will reduces the use of other fuels in the and unloading, the RDF bales are prevented look for new solutions that are more district heating systems. from being damaged. economically and environmentally Sweden is the leader in this field and sustainable. imports of RDF are a prerequisite for “We can see today an increase in sustainable energy production in the “We can see great exports from the UK of materials for country’s district heating plants. recycling and we believe this upward “We can see great opportunities for opportunities for collaborations trend will continue for both RDF and collaborations with players who export with players who export RDF SRF*,” Nils-Johan Haraldsson predicts. RDF to industries in Sweden. Our existing to industries in Sweden.” “We are meeting a growing market transport solutions based on fixed and with optimised logistics when fuels are frequent schedules reach destinations turned into energy. Refused derived around the country and are a competitive “Greater demands for handling, logistics fuels load is a growing business for alternative,” says Nils-Johan Haraldsson, and clean, sustainable solutions, we offer the future and we have the solutions Vice President Marketing and Business reliable transportation that delivers at the today,” Nils-Johan Haraldsson says. Development at SCA Logistics. right time,” Nils-Johan Haraldsson goes on. * Solid Recovered Fuel.

Nils-Johan Haraldsson, Vice President Marketing The RDF bales are sorted and sealed in and Business Development at SCA Logistics. plastic for a clean handling. 23

Leadership that inspires a better safety culture Over the course of the five-month “Leading safely” programme, fifteen leaders have been working to develop their ability to contribute to a better safety culture at the company. Lars Pettersson, a supervisor at SCA Sourcing & Logistics, is one of them. With a focus on

issues that concern health and safety, his personnel have increased the number of risk Text: Maria Åman. Photo: Per-Anders Sjöquist. observations by 600 per cent, exceeding the target by a substantial margin.

When the project began, Lars Pettersson set safety at the workplace and a supervisor himself the goals of contributing to a better attend these meetings. health and safety culture at the workplace, “The new routine also includes giving being a source of inspiration for his feedback to a person who for example co-workers and increasing the number submitted a risk observation and saying of risk observations by 200 per cent. His strategy was to be persistent and talk about health and safety with his co-workers every day. “I take every opportunity to talk about health Motivation for success “I take every opportunity to talk about and safety.” health and safety. For example, I regu- larly encourage my co-workers on the team to make risk observations and think what the result of their action was,” Lars about our ‘Take 2’ routine – taking two Pettersson goes on. minutes to think before acting when carrying out their work,” says Lars Goal attainment Pettersson. exceeds expectations Giving positive feedback, encouraging People’s increased focus on health and what’s good and doing more of what safety has given good results. works creates motivation that breeds “Over the past six months we have Lars Pettersson, supervisor at SCA Logistics. successful projects and contributes to received 34 risk observations, compared goals being attained. to 6 in the previous half-year,” Lars “It’s important to give praise when Pettersson says. TAKE 2 someone does something good, such as The increase is equivalent to 600 per for example reporting a risk observation,” cent, which exceeds the target by a broad Take 2 and make a risk survey. Lars Pettersson emphasises. margin. Two minutes can make the difference “I have the full support of my own between a job being done safely and New routine ensures action manager in our health and safety work. an accident occurring. The ‘Take The new routine of having a monthly I have also noted greater commitment to 2’ routine, making risk surveys and meeting where reported incidents are these issues on the part of top management, thinking before acting are a way to reviewed and followed up contributes to who now ask questions they didn’t ask see risks and rectify them before all matters being dealt with. A safety before about various safety measures,” an accident happens. representative, the person responsible for Lars Pettersson rounds off. Text: Maria Åman. Photo: SCA. 24 detailed flowchart. All SCA Logistics’ Logistics’ SCA All flowchart. detailed a work in the visualised that exhibition an was step next the and beginning the from Right project of the launch the marked processes of the review The solutions new to challenges From &Logistics. Sourcing SCA President, Vice Executive Johannesson, Rolf explains implementation,” for now have abasis and winter and autumn the during analyses our We made services. our how we deliver and of how we work analysis in-depth an made follow-up. and invoicing management, cost management, to document departure and planning transport booking, through order from work processes, of all up alist drew we project, the of phase first the During prerequisites for growth are just afew. getting things right from the beginning. Optimised administration workflows, more efficient and better extensivean long-term internal project: Right from the beginning. There is much to begained from In order to improve processes and routines within the organisation SCA Logistics last winter began Right fromthebeginning “We have reviewed every process and and process every “We have reviewed

scrutinised. and analysed listened, others The stage. work at each to say how they asked were processes the work who in people the areas. various in knowledge specialist their with contributed and to influence, tunity oppor the given were attended, employees improvement effort that involves involves that improvement effort “Right from the beginning is a long-term and very important important very long-term and “We hung the flowchart on a wall and on a wall flowchart “We the hung Then we discussed together what can can what together we discussed Then the entire organisation.” entire the - deviations, learning from them and and them from learning deviations, handling for structure optimal an create to be might example Another products. bulk managing for support of system kinds new finding or service best the able to deliver to be information right the given always we are that of ensuring areas. main six into structured and concentrated been have These improvements. for suggestions hundred several in resulted exhibition The Several hundred suggestions adds. Johannesson Rolf improvements,” suggesting and angles new from at them looking surface, to the challenges bringing on. goes improved,” Johannesson be Rolf Co-workers hard at work with the flowchart. the with work at hard Co-workers “In concrete terms it might be a matter amatter be it might terms concrete “In way of effective an was exhibition “The 25

getting it right the first time,” explains has better information on which to beginning is a long-term and very Rolf Johannesson in more detail. base decisions. important improvement project that The changes will be introduced in “By the time we have finished, many involves the entire organisation and that stages over a fairly long period. manual routines will have been automated means we will be well prepared to meet “Right from the beginning is a major and integrated into our information future growth,” Rolf Johannesson explains. project that requires a clear structure system. Another part of our assignment and organisation. We will be working is to find the information system of the in stages, where we finish each one future for SCA Logistics and Right from before moving on to the next. This the beginning gives us a good foundation IN BRIEF will allow us to check everything and for a clear requirement specification in maintain good control throughout that respect,” says Rolf Johannesson. Six main areas in Right from the chain,” says Rolf Johannesson. SCA Logistics is currently evaluating the beginning: several different information systems 1. Standard form and booking support Foundation for future development that are available today. 2. New System Solution When the project comes to an end, the goal “We’re studying one of them a little 3. Gate Solution is that the workload on the administrative more closely and we may soon have a 4. Routine Changes side will have decreased, that work flows in a decision. It doesn’t mean that we’re 5. Bulk Product Management more optimal fashion, and that management terminating the project. Right from the 6. Deviation Management

Maersk Line leader on the oceans with the biggest container vessel Maersk Line has launched its first 2nd generation Triple-E, Madrid Maersk, a 20,568 TEU* container vessel. Madrid Maersk called at the port of Tianjin in China as the first stop on its maiden voyage and

is the first of eleven vessels in the new Triple-E series. Text: Maria Åman. Photo: Maersk Line.

Thanks to a deeper hull and smaller engines the new Triple-E series can carry 2,000 more containers than the previous generation with an almost identical length, breadth and height. Madrid Maersk is the first in a series of eleven 2nd generation Triple-E vessels. It is also the first of the 27 vessels Maersk Line ordered in 2015 to enter service.

Short-lived first place Madrid Maersk takes over the position of world’s biggest container vessel from MOL Triumph, which has a capacity of 20,179 20-ft containers. This will not last for long The 2nd generation Triple-E’s nominal capacity is nearly 2,000 more 20-ft containers than the however because OOCL Hong Kong, with previous generation within a vessel body with nearly identical length, breadth and height. a capacity of 21,100 20-ft containers is due to enter service soon. FACTS Gross Tonnage: Length Overall x Breadth Extreme: Year Built: (*) All TEU figures are nominal capacity. 214,286 399 m × 58 m 2017 TEU = Twenty-Foot Equivalent Unit. Deadweight: Nominal capacity: 210,019 tons 20,658 TEU 26

Customer-adapted boxes with digital innovation In addition to product development, SCA’s innovation work also involved developing services that increase sales and are based on long-term relationships with customers. A good example is SCA Containerboard’s new sales support called Line. Text: Kerstin Olofsson. Photo: Per Pettersson, SCA.

“It’s an IT tool that means that we can help patterns that the number of possible customers when they want to develop new combinations is next to endless. corrugated board boxes. By means of SCA Containerboard manufactures simulation we can suggest box designs the liner and their customers put liner and that match the customers’ requirements fluting together to make corrugated board exactly,” says Lise-Lotte Jaktlund, who and produce boxes of corrugated board. works in SCA Containerboard’s technical Lise-Lotte and her colleagues at technical customer service. customer service collaborate closely with Corrugated board is made up of several the customers and assist them with layers of liner and fluting. Liner is the flat technical advice to ensure that they get layer and fluting is the rippled layer placed the best out if SCA’s liner. between the layers of liner. You can have “Thanks to Line we can offer customers one, two or three layers of fluting and a broader service and help them even more. because there are so many different kinds We can make it easier for them when of liner, fluting and corrugation structures/ they’re developing new products at the

materials are safe to use in contact with food, their environmental impact, and “We can make it easier for what their sustainability in humid climates our customers when they’re is are also stated. Up to three different simulations can be run simultaneously to developing new products.” allow different alternatives to be compared. “It’s no longer necessary to produce samples to assess the boxes’ characteristics same time as we show them the technical but we can now see this in advance with advantages of SCA’s liner,” Lise-Lotte says. the help of the simulations,” Lise-Lotte continues. Simulates the finished product Line contains a database with details about More efficient adaptation of different kinds of fluting and liner – both the customer’s production SCA’s products and products from other With the help of Line, SCA can also help suppliers – and calculates how the different its customers optimise their container properties function when they are combined board ranges. with each other. ”I visited a customer recently who In addition to the final product’s manufactured almost 150 different kinds of Lise-Lotte Jaktlund, SCA Containerboard’s technical customer service. strength, print quality, whether the corrugated board but could now see that 27

More reliable transportation

New, innovative services are a way for SCA Containerboard to expand its services to its customers. Another important service is the frequent and reliable transportation they can offer thanks to SCA Logistics.

”It’s a big advantage to have control over transportation all the way to the ports on the continent,” says Fredrik Lindvall, Supply Chain Manager at SCA Containerboard, and goes on: “The system with vessels that call at important ports around Europe is both well-designed and extremely reliable. Customers know that they will get their deliveries on time. It’s also simple for the customers because they know when to order their goods to get them at precisely the time they want.

Regular, frequent deliveries For customers in the Nordic region it’s not by sea but by rail that their goods are transported. But the advantages are many had almost identical characteristics. the same: regular, frequent deliveries and This allowed the customer to reduce part of full control throughout the entire chain. their product offering without narrowing ”Among other things SCA Logistics their product portfolio, in turn giving them operate a shuttle service by train to fewer switches in their production and Skövde three times a week. From there, reducing waste!” the goods are taken by truck to our “This is a good example of innovation customers in the Nordic region. Being Increases competitiveness not only being a matter of developing able to offer such uncomplicated and Line can also be of use when SCA wants new products,” says Magnus Viström, reliable transportation for our products to develop new types of liner. Innovation Manager at SCA Forest gives competitive advantages over our “If we’re considering developing a new Products. competitors,” Fredrik Lindvall liner, with specific characteristics, we can “New services can also increase our rounds off. simulate in advance how it will function competitiveness and our sales. Line also together with other materials, which is shows that digitisation creates a great advantage in the development opportunities for us to offer our customers process,” Lise-Lotte says. services,” Magnus Viström rounds off. 28 High interest from future customers at Transport Logistic

Record participation with visitors from all over the world. SCA Logistics met great interest at Transport Logistic in successful cooperation with Port of Kiel for the first time. “Our stand was like a magnet,” says Jörn Grage, Terminal Manager, Lübeck. Text: Jennie Zetterqvist. Photo: Azadeh Hollmann, Tina Kropp.

Transport Logistic 2017 in Munich is the “Everyone’s there at Transport Logistic Our primary goal was to put ourselves on industry’s leading international trade fair and that gives us a fantastic opportunity show for European industry and present and the most important meeting place in to meet many partners in a short time,” the new transportation possibilities we Europe for both those who offer transport Jörn Grage goes on. offer between Europe and northern solutions and those who consume them. Sweden,” says Jörn Grage. Greater breadth with a shared stand SCA Logistics shared a stand with Port of High interest from future customers Kiel and Color Line Cargo, which gave The interest shown by future potential “The new wagon allows us to greater possibilities to show the breadth customers from various industries was lower our logistic costs.” and combined strength that the whole port high, especially in the new route from Kiel offers. At the same time it gave SCA to Malmö, Sundsvall and Umeå that is Logistics a very good opportunity to serviced twice a week for all type of cargo This year set a new record with 60,000 market its specific possibilities as a renewed like container trailers, industrial goods and visitors from 120 countries. The nine player in the market after its relocation project cargo. halls were fully booked from 9-12 May from Lübeck to Kiel. “Judging from the response we received, with a total of 2,162 exhibitors from ”Our stand was like a magnet with a we succeeded in reaching the market and 62 countries. steady flow of both visitors and partners. awakening interest. The stand was crowded the entire time and it has already materialized in new opportunities. The prerequisites SCA Skog presented their first specially designed wagon, for new good partnerships are really Sgg80s, from Innofreight at the fair. The wagon defines new standards in the transportation of round wood in positive,” Jörn Grage continues. Scandinavia and increases the cost efficiency. New wagon presented In conjunction with the fair, SCA Skog also presented their first specially designed Sgg80s wagon from Innofreight, which defines new standards in the transportation of round wood in Scandinavia. The load has been increased by 25-30% per block train. “This allows us to increase our cost efficiency in the long term. Innofreight’s robust post systems reduce maintenance costs significantly in comparison with the ExTe posts that have been used so far,” explains Lars Nolander, Logistics Manager at SCA Skog. 29

SCA’s biofuel reaches a growing market

Sawdust from SCA’s sawmills is refined into high-quality biofuel. SCA Logistics’ marine transportation enables climate-neutral wood pellets from SCA BioNorr to be transported efficiently to the growing market in Europe. Text: Jennie Zetterqvist. Jennie Text: Photo: Per-Anders Sjöquist.

SCA BioNorr is one of Sweden’s biggest Growing export market a year, which is equivalent to the total and leading producers of wood pellets of In Sweden, biofuel has already replaced annual demand in Sweden. It’s gratifying documented high quality. fossil fuel to a large extent in both private to see more and more people realising “Our pellets are a clean, natural households and industries. The same the advantages of carbon dioxide neutral product, manufactured from controlled sustainable development is now taking bioenergy,” Stefan Rönnqvist continues. sawdust that for the most part comes originally from SCA’s own well- Strong shipping solutions managed forests. This gives us control SCA’s plants are strategically located over the entire chain, from forest to “It is an enormous strength close to ports and pellets are currently end customer,” says Stefan Rönnqvist, exported by sea from Luleå to primarily Head of Bioenergy at SCA Energy. to have a professional Denmark, Belgium and Great Britain. SCA shipping partner with the BioNorr uses SCA Logistics for its marine Increases environmental gains right expertise in the area.” transportation needs. The sawdust is compressed into a “It is an enormous strength to have homogeneous fuel at three production a professional shipping partner with plants in northern Sweden: Härnösand, the right expertise in the area. We get Stugun and Luleå. Through an extended place all around Europe, where demand very good support and feel secure in that collaboration with Bioenergi i Luleå is increasing constantly. we get the best logistics solutions with AB, SCA BioNorr recently optimised “The export market is good and is SCA Logistics,” Stefan Rönnqvist says. the logistics and production, giving growing by about 1.6-1.7 million tons further environmental gains at all three locations. Today the focus is on deliveries to customers in the region around the FACTS respective production plant. “With our extended collaboration Climate neutral in Luleå the logistics function even – part of nature’s eco-cycle: better. SCA BioNorr now takes Pellets are climate-neutral because when overall responsibility for supplying combusted they emit the same amount of raw materials, sales, marketing and carbon dioxide as the growing tree once customer service, while Bioenergi in took up from the air. Pellets contribute Luleå focuses on producing the volumes to a sustainable society because their we want. The coordination makes us a combustion does not contribute to stronger player who can put even more acidification, produce harmful emissions resources into development to benefit our of carbon dioxide or accelerate the customers,” Stefan Rönnqvist goes on. greenhouse effect. 30

The way out into the world for sawmills On Wednesday 3 May, Kvarken Ports Umeå in cooperation with SCA Logistics brought together the region’s sawmills to present developments and future opportunities at the port. Text: Maria Åman. Photo: Kvarken Ports. The focus on the future and leadership and perceptions of the port’s operations inspired exchanges of experience and networking.

SCA Logistics’ terminal manager in Umeå, months of 2017 have grown still further Margareta Gustafsson, and Ellenor and at an impressive rate compared to the Nordborg, Chartering Manager Container same period last year,” Markus Rönnblom at SCA Logistics, spoke about how SCA told his audience. Logistics can offer the sawmills in northern Container volumes are predicted to Sweden attractive ways to export their increase to over 50,000 TEUs by 2020 and products around the world with efficient Kvarken Ports is preparing itself for the transport solutions and logistics systems. future volumes. SCA Sourcing & Logistics’ terminal in “We invested in a new mobile crane that Umeå offers efficient transportation, can lift 125 tons last year. At present we’re handling and storage of products from the planning a conversion of the south quay to iron ore fields in the north to Örnsköldsvik which container handling will relocate in

“We have all the prerequisites to increase our service to the region’s sawmills.”

in the south and can reach the world via order to optimise container handling Margareta Gustafsson, SCA Logistics’ the company’s own terminal network. with larger handling areas and new berths. terminal manager in Umeå. “1,500 kilotons of cargo a year pass We’ll also be developing the areas where through the Umeå terminal. We already we handle containers today to be able to a long time and intend to continue to handle large volumes of timber and have handle bulk products, for example timber, offer the market more capacity. We can all the prerequisites to increase our service there,” Markus Rönnblom continues. see that the demand is there,” Margareta to the region’s sawmills,” explains “Since both container and timber Gustafsson observes. Margareta Gustafsson. volumes are increasing we see a very The planned new container quay is a positive future,” Markus Rönnblom prerequisite for efficient logistics solutions Infrastructure investments rounds off. in the future and the investment is currently for growing container volumes under evaluation. Markus Rönnblom, Marketing and Sales Creates prerequisites for “Together with Kvarken Ports we Manager at Kvarken Ports Ltd, talked greater competitiveness are creating prerequisites to reinforce the about the importance of good infrastructure “Investments we’ve already made in new region’s industries’ competitiveness, open to meet the growth in container volumes in stuffing stations, a new load plate and more up new routes to global and European the market. crane capacity have laid the foundation markets, and are continuing to build “Container volumes in Umeå broke all for continuing increases in our container long-term, reliable logistics solutions,” records in 2016 and during the first four volumes. We’ve been growing steadily for Margareta Gustafsson sums up. Source: Forum för bioekonomi

31

Essentials that stem from trees Many essential products in our everyday lives stem from trees. There could even be more considering that everything made from oil can be made from forest products. The pace of innovation, which is in turn determined by demand and competitiveness, is crucial for future development. What the future will look like is a blank page but of all the forest harvested in Sweden today most is used to make timber products, paper, and board and produce bioenergy. A small portion is used to make textiles, chemicals and cosmetics.

TIMBER TEXTILES Construction. Interior furnishings. Furniture. Industrial textiles. Interior furnishings. Ready-to-wear clothing. - Construction materials such as solid wood, glulam - Viscose, Tencel, Lyocell and Modal and cross-laminated timber are used in the production are some of the types of cloth made of houses, furniture and interior furnishings. from timber products.

BIOENERGY COMPOSITES Bioenergy/wood/pellets. Building materials. Biogas. Packaging. Biofuels. Consumer goods. - Residual products from Vehicles. the forest industry are - Composites are mixtures turned into bioenergy. of different materials where wood fibre adds strength and durability.

CHEMISTRY PAPER AND BOARD Chemicals. Packaging. Food. Functional papers. Plastics. Printing paper. Pharmaceuticals. Personal hygiene products. - Forest products are used among other things to Toilet and kitchen paper. make the capsules that enclose pharmaceutical - Functional papers are materials that can communicate, substances in medicines. for example milk cartons that can say when the milk has soured or when they are almost empty. Big volumes? No big deal. Bring it on.

Our new service from Kiel to Umeå and Sundsvall via Malmö offers M L A great opportunites for big volumes, heavy load and rolling cargo. IE LM K Ö Welcome on board, reach your markets with competitive and reliable RoRo services at fixed schedule all year round.

S U • CLEAN VESSEL • RELIABLE SCHEDULE • HIGH QUALITY N D S Å V E AL UM Contact: For more information regarding freight solutions, please contact L Henrik Fälldin at e-mail [email protected] or phone +46 60 19 36 20.

SCA Logistics

WE SHARPEN YOUR COMPETITIVE EDGE [email protected] www.scalogistics.se