NEW WAYS EDITION THREE | 2012

Bright lights, big vessel

Baltic Shipping Days, in the shadow of the sulphur directive

Efficient logistics the linchpin of recycling

scatransforest.com 2

EDITORIAL Nordic midwinter

Dark clouds are gathering in the market and bright spots are few and far between. Exporting industries are facing several challenges and this is having a serious impact on transportation and logistics. Today’s market can perhaps be compared to a midwinter dawn in Norrland, with the sun just above the horizon. This will require new innovations, consolidation and collaborations.

From a transportation perspective, perhaps the to increase cost-effectiveness. In the prevailing export industry’s greatest worry is the sulphur weak economic situation, the present systems directive due to come into force in 2015 – unless and solutions will be subjected to stress tests. something drastic takes place. The directive will Both shippers and logistics companies will at the seriously reduce the competitiveness of shippers in same time take advantage of any attractive prices the SECA area, first and foremost in Sweden and and solutions that arise along the way, but it is Finland. No real, reliable solution exists at the important that all parties in the logistics chain present time and there may not be enough time understand, buy into, and work to realise the to develop a good cleaning technology by 2015. long-term strategy of continued consolidation Other dark clouds on the horizon are expensive fuels, both of their own volumes and together with the weak euro and weak consumption in Europe, logistics companies and other colleagues in the which also affect transportation assignments to the export industry (also including those with the same increasingly important overseas destinations. products) and exploit the European and global Fuel will be significantly more expensive when intermodal possibilities. For example, the container the directive comes into effect as shippers will be is and will continue to be a load bearer that opens forced to use more expensive low-sulphur diesel, at up possibilities for the exporting forest industry to the same time as freight charges already today need cooperate with other base industries and with other to be reduced for the export industry in the Baltic consumer products that share a common objective – region to be able to compete in a global market lower costs and higher competitiveness. in both the long and the short term. The solution Today’s difficulties and challenges are forcing that is closest to hand is largely the same today as us all to leave our comfort zones. Things that could it was for SCA in 1967, i.e. consolidate volumes not be done before are now possible; no one can in system solutions of various sizes while still afford to miss an opportunity and motivation is maintaining service. The difference today is that the growing to try new solutions. This will open the market is global and has intermodal systems and way to finding new, common, sustainable solutions possibilities, for example 40’ containers worldwide even faster. and 45’ containers for the European market. SCA Season’s Greetings to One and All. Transforest’s base has for a number of years been RoRo vessels and container feeders that work to fixed, reliable timetables. But there is still more to do. There is great potential in further consolidation Nils-Johan Haraldsson and greater volumes in the transport systems Vice President Marketing and Business Development

NEW WAYS | NUMBER THREE | 2012

Publisher Editorial staff Translation Inlay Comments New Ways is printed at an Nils-Johan Haraldsson Björn Lyngfelt Semantix SCA GraphoCote 90 g. SCA Transforest AB, FSC certified printworks Henrik Fälldin Box 805, SE-851 23 and on FSC certified paper. Editors Katarina Nordensson Production Cover Sundsvall, Sweden. Throughout the production Mats Wigardt Lena Zetterwall Frosting Cocoon gloss 200 g. Tel. +46 60 19 35 00 process, the environmental Håkan Norberg Mikael Högström Kommunikationsbyrå [email protected] impact is kept to an absolute Carl Johard minimum, with a view to Olof Wigren Cover photo: Printing promoting responsible PA Sjöquist Tryckeribolaget, Sundsvall use of the world’s forests. into operation with greater capacity than than capacity greater with operation into put be 2013, will ferry From anew January Greater capacity route. over the taking company shipping new acompletely with costs. higher and environment the on impact negative delays, both meant has which Haparanda, by roadthrough freight on. goes Gustafsson Margaretha forus, ces conse negative had naturally has best the been not has precision delivery that fact – The Completely new company shipping problems. of mechanical consequence a out as carried been not or delayed been have also assignments transport occasions repeated On maintained. adequately been not Vaasa has and Umeå between crossing the on ferry the that have meant future the about uncertainty and problems RG Line’s since one easy an been not has situation The administrator. of an responsibility the have been operations then 2011 November since in and bankruptcy for filed company but the by RG Line, Umeå. Terminal at Interforest Manager Terminal Gustafsson, Margaretha says light, positive a very in change – We this view and create opportunities to develop transportation in the future. of Vaasa will provide connection asecure across ferry the Kvarken Strait A jointly owned shipping company set up by Municipality Umeå and the City Reliable transportsolutiontoFinland But this will now change for the better better forthe now change will this But to ship forced we have been times – At operated previously was route The ­que ­n- The ferry was built in 1981. in built was ferry The flag. Finnish the under sail will and Express Wasa re-christened now be will She curia. Betan m/s as Islands Canary the in traffic charter in used been has years recent but in of Wasa Express name the under previously route the operated has Kvarkenthe Strait across service enter will that ferry The Strait Kvarken the across Service says. Gustafsson Margareta engine, single its with ferry present the with case the not is This way. under while made be can repairs and uninterrupted continue can traffic down, break engine an Should operation. reliable more guaranteeing engines, diesel four has It vessel. new the with better considerably be will long-term approach, reliability of operation ferry. present of the capacity loading the double is This trailers. and of trucks metres 450 1,150 or cars accommodate can deck car 300. The ferry’s Ro-Pax present to the compared be to be 1,500 passengers, carry able to is vessel today. new used The one the – Over and above the new company’s company’s new above the and – Over better with the new vessel.” “Reliability operation of will considerably be - Kvarken Strait every year. every Kvarken Strait over the Munksund and Obbola in mills paper the from of products tons 60,000 approximately transports Transforest SCA solutions logistics More efficient across regional and national borders. ­ and exchange for continued important very are Kvarkenover the Strait traffic passenger and freight both that view muncipality’s of the part is part-ownership its Muni-cipality for Umeå and AB/Oy Ferry NLC called is company shipping new The for business, says Margaretha Gustafsson. Gustafsson. Margaretha says for business, conditions good creates infrastructure ioning funct- Aproperly wagons. railway transport also can that ferry modern amore using about talking is company shipping new the since time years’ few in a solutions logistics efficient more even We able to offer to be hope Europe. from to and ships system Transforest’s SCA by transported freight the includes also which of Umeå, Port the in unloading and loading

– We also have full responsibility for for responsibility – Wehave full also

collaboration collaboration

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Text: Olof Wigren. Photo: IStockphoto 4

Bright lights,

Text: Mats Wigardt. Photo: Maersk Line big vessel

Triple-E, the world’s biggest vessel, is about to be built. The 18,000 containers in a Triple-E vessel would fill Times Square in New York City. Containers would tower over billboards, lights and many buildings. Stacked on top of one another, they would reach 136 meters high, almost nine times the size of King Kong. 5

Bright lights, big vessel 6 Source: Maersk Line. Photo: Maersk Line

The world’s largest vessel Maersk Line at a glance Maersk Line is making waves building the world’s biggest and most effecient container vessel. Energy efficiency, economy of scale • Maersk Line is a division of the A.P. Moller – Maersk Group. and the environment has inspired the design and Triple-E vessels • More than 600 container vessels.

will ­reduce CO2 emissions by more than 50% per container moved. • 3.8 million TEU containers (or 2.3 million containers). A clear trend in cargo patterns reveals the for Economy of scale, Energy efficiency, • 325 offices. rapid growth of East and North China and Environmentally improved – are to be • Around 25.000 employees (or about markets, which will shift cargo further built by Korea’s Daewoo Shipbuilding and 16,900 and 7,600 Seafarers). north. This will lead to a change in vessel Marine Engineering Co. Ltd. in accord- • 125 countries. requirements and shipping patterns. This ance with standards of the classification shift presents Maersk with the opportunity society ABS. Deliveries are scheduled for to build more energy efficient vessels and 2013–2015, and Maersk Line has an option lead the industry in a new and more envi- to order an additional twenty vessels. The Triple-e ronmentally friendly direction. vessels will be built for Asia-Europe trade. Join us as we embark on a voyage into the Triple-E = Economy of scale, Energy Economy, energy and environment construction of the world’s largest and efficiency, Environmentally improved. The ten Triple-E class vessels – standing most efficient container vessel. 7

Container giants FACTS Client: Maersk Lines. 20 vessels ordered on the seas for delivery between 2013 and 2015. Length: 400 metres. The world’s largest container shipper, Maersk Line, Beam: 59 metres. has ordered the biggest vessels in the world. Some time Cost: USD 190 million each. Capacity: 18,000 TEU. next year they will take delivery of the first Triple-E vessels Crew: 19. Cabin berths for 34 people. from ­Daewoo Shipbuilding in South Korea. With room for Triple-E will be the world’s biggest 18,000 20’ ­containers the vessels will be more efficient, vessels, a record previously held by the 458-metre oil tanker Knock Nevis. more economical to operate and better for the environment.

Now that the giant oil tanker Knock The new giant vessels will also have smaller They will also be the largest and widest Nevis has been broken up for scrap, engines since they are designed for a speed vessels that can Europe’s biggest container Maersk Line’s new container vessels will of 19 knots instead of 23 which was the ports, like Rotterdam, Bremerhaven and be the largest in all respects: 400 metres standard for the E-class vessels, which Felixstowe, can handle. In Asia, a Triple-E long, 59 metres wide, 73 metres high and means lower fuel consumption and a 50% can dock in Shanghai, Ningbo, Xiamen, room for 18,000 TEU (20’ containers). reduction in CO2 emissions compared to Yantian and Hong Kong. The twin screws alone are 10 metres average ocean-going shipping. Achieving advantages of scale in in diameter and weigh 70 tonnes each. And compared to the vessels we use container traffic in the way Maersk Lines The interior could easily accommodate today the environmental impact will be is doing here is also part of the concept an ice hockey rink, a football stadium and about 30% less with the new vessels, says behind SCA Transforest’s newly opened a basketball court – and spectator stands Kenneth Søegaard, Marketing Manager at ContainerExpress service in the Baltic. for all three. The vessel’s load would fill Maersk Line in Scandinavia. We are striving to do at a local level Times Square in New York, like Lego Maersk Line’s Triple-E vessels are what Maersk Line is doing on a global level blocks row upon row. intended to operate between Europe and with more efficient transportation of more Impressive figures. Compared to Maersk Asia. With the size and draught that they containers and lower fuel consumption and Line’s previous giant vessels in the so-called have Triple-E’s can use the Suez Canal but emissions, says Nils-Johan Haraldsson at E class, there is now room on-board for not the Panama Canal. SCA Transforest. another 2,500 containers. But more important is the fact that the 20 Triple-E vessels on order (at USD 190 “Compared to the vessels we use today the environmental million each) will be cheaper to operate. This in turn means that the freight charge impact will be about 30% less with the new vessels.” per container will be roughly 26% lower.

Energy efficiency is partly derived from the unconventional hull design and the twin propulsion setup. Text: Håkan Norberg. Photo: PA Sjöquist baltic shipping days 8 Shipping Days Baltic of transportation and logistics in the Baltic. together and listen to seminars that all centred around the future the ninth time. Around 150 delegates had the to opportunity come Transecure organised the Baltic Shipping Days conference for At the end of October SCA Transforest, Provins Insurance and In theshadowofsulphurdirective overarching question –Sunrise or sunset in the Baltic? the conference. However, we all have to find our ownanswer to the the picture of the future alsoclearer became over the two days of But like the mist clearing around the Södra Berget hotel in Sundsvall, into force in 2015, atopic that overshadowed the entire conference. Many spoke about the of effects the sulphur directive due to come

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Baltic An authority focused on the customer By focusing more on its customers the Swedish Maritime Administration is trying to break with its traditional exercise of authority and collaborate more with the industry. Less talk and more action, to put it another way. That perspective characterises among other things the authority’s attitude to this winter’s icebreaking.

Shipping Days – Just do it! That is the overriding message Think big – act small matters, his message to all players from Jonas Vedsmand, the Swedish Mari- He explains that the key to good infra- is to think big and act small. time Administration’s Marketing Director. structure for transport lies in not concen- – No one can save the whole world The talk he gave at Baltic Shipping Days trating on individual modes but viewing but we can solve the problems that are was strongly focused on opportunities. them all as one single unit. And regarding closest to us. We’ll get nowhere just by Swedish ports have an overcapacity both efficiency measures and environmental pointing to the whole, he goes on. of 40%, in other words plenty of scope for growth. But there are bottlenecks and it is on these that the Swedish Maritime Administration is concentrating its efforts. One of the things that need to be done is to use Lake Mälaren for shipping in better ways in order to relieve the roads in and around Stockholm, an improvement that will also have an impact far outside the capital. – By untying the knots in Stockholm, we help the industries in the north to get their transportation through, says Jonas Jonas Vedsmand, the Swedish Maritime Administration’s Marketing Director. Vedsmand. 10

He takes the new sulphur directives as an example. – Why wait with improvements and efficiency measures to see if new environ- mental demands come into force or not? The Mona Lisa project shows that a vessel ys can use 10% less fuel merely by operating in a smarter way; this is equivalent to the whole sulphur directive.

Industry gets more to say As winter approaches once more, Jonas Vedsmand has some good news for the c s hi pp in g da balti shipping industry. The much-criticised hiring out of the icebreaker Oden a few years ago will not be repeated – unless the industry agrees to it. – Two years ago the Swedish Maritime Administration decided that we would work together with industry in a more customer- centred fashion than before. And this has given results. We do what we agree to do “My next and mistrust has turned into confidence. This means that Oden will stay at home

Text: Håkan Norberg. Photo: Sjöquist PA as long as our customers think she should. – But if we have overcapacity we can car won’t save money by hiring out, which leads to lower costs for our customers. We have a common interest in using our resources in the best possible ways, says Jonas Vedsmand. be a diesel”

New environmental rules for shipping will perhaps make “No one can save the the future more uncertain than ever. It’s time for the whole world but we transportation industry to review its risks, says Johan can solve the problems Bauhn, commodities trader at Nordea Bank. that are closest to us.”

Johan Bauhn emphasises time and time is quite good at securing its fuel costs. mona lisa again that we know nothing about the From his point of view, this is only true Mona Lisa is an EU project where auth- future. This uncertainty, together with to a certain extent in the transportation orities, trade and industry and researchers expected turbulence over the next few industry. in Sweden, Finland and Denmark are years as regards regulations and fuel – Loads may vary, perhaps it’s not pos- collaborating to modernise the shipping prices, leads him to believe that the sible to fill a whole vessel, and what can’t infrastructure. Modern technology and players in the transportation industry be secured as regards load perhaps should quality-assured shipping lanes will lead need to review their financial risks. be secured in fuel. That would at least to greater safety, less environmental – Margins will come under more and provide protection on one front, he says. impact and best possible economy. more pressure and it will become increas- ­ The security that Johan Bauhn is On a test run between New York and ingly important to identify, quantify and talking about is to fix the price of fuel for Helsinki a vessel used 10% less fuel by handle one’s risks, he goes on. future purchases through hedging. Or ap­plying the Mona Lisa project’s proposals. His impression is that passenger fix the relative price difference between Read more at monalisaproject.eu. traffic by air, sea and land, with its crude oil and refined fuel, for example fixed revenues in the form of ticket sales, diesel. 11

– This buys time before needing to make a will be lots of solutions. But it will take refined fuels, first and foremost diesel, choice about future fuels. Hedging cannot time and will make the world more will soar after 2015 due to greater be used to make financial killings but it is complex, he says. demand for low-sulphur fuels as a result possible to even out the difference between Nordea expects fossil fuels to continue of the new sulphur directives. an unexpectedly poor year and an unex- to be the predominant source of energy. – My next car will probably not be pectedly good one, he goes on. Demand for high-sulphur oil will fall a a diesel, that much I can say, says Since a large proportion of shipping little while there is a risk that the price of Johan Bauhn. will in a couple of years’ time probably be using the same fuels as trucks and households today, that is to say diesel, more strategic intelligence is needed. “Margins will come under more and more pressure There will quite simply be more markets and it will become increasingly important to identify, to keep track of. – There will not be one single solution quantify and handle one’s risks.” to replace high-sulphur oil; I think there 12 ys c s hi pp in g da balti

Tough times ahead

Text: Håkan Norberg. Photo: Sjöquist PA for the forest industry

The forest industry and the Ro-Ro vessels will be hardest hit. The greatest potential for improvement is to be found in the transportation industry’s logistics systems, predicts Christopher Pålsson, CEO of Maritime Insight.

There is no shortage of transport capacity the region­ to forests in other parts of the alternatives by sea, for example RoRo at the moment, but there will be a shortage world, says Christopher Pålsson. and container. Port handling, degree of of vessels that satisfy the environmental utilisation of the vessels and more, says regulations due to come into force in 2015. Compare various alternatives Christopher Pålsson. – Much of that can be resolved by He can also see problems in the future switching to diesel, which many vessels for RoRo vessels with their relatively high Gains can be made in logistics systems can do fairly easily, but it will increase energy consumption. At the same time However, he can see the greatest potential bunkering costs by 30–75% depending container freight is becoming faster, which for improvement not in fuel or energy on what other measures one takes. takes the edge off RoRo’s competitive consumption but in the transportation Like reducing speed for example, says advantages. industry’s logistics systems. Christopher Pålsson. – As a player in the industry I would – There are almost certainly efficiency take a serious look at the various alter­ gains of 20–30% to be made. It’s not going Forest industy among the hardest hit natives and compare them against each to be easy but the potential’s there, says Industries where freight transportation other. Land versus sea. The different Christopher Pålsson. accounts for a large part of the total ­equation, as in the forest industry for ­example, will be hardest hit. – Increased transportation costs have “As a player in the industry I would take a direct impact on the competitiveness of their products. Margins shrink, which a serious look at the various alternatives.” may cause a company to move away from 13

“Remote piloting might be an alternative at ports that do not have so much traffic.” Photo: Sjöfartsverket / Ola Andersson Strømdal / Tord Trained captains make piloting unnecessary

Traditional piloting or remote piloting? Neither. Jonas Vedsmand at the Swedish Maritime Administration and Lars Petersson at SCA Transforest believe that trained captains are the only way to go.

Piloting is often needed when vessels above – Of course it all depends on the fairway, selves, says Jonas Vedsmand, the Swedish a certain tonnage want to dock or cross but I’m absolutely convinced that captains Maritime Administration’s Marketing Director. particularly difficult areas. The pilot then can do their own piloting. It’s part of one’s But there may be some exceptions from goes on board to guide the vessel. The pilot’s professional role and pride to be able to, the main rule. knowledge of the fairways and experience says Lars Petersson, Fleet Manager at SCA – Remote piloting might be an alter­ of various kinds of vessel contribute to Transforest and himself a former captain. native at ports that do not have so much maintaining safety at sea. SCA Transforest wants all vessels to traffic or where a traditional pilot cannot The Swedish Maritime Administration is have a pilot dispensation for ports on the go on board because of bad weather or responsible for providing piloting in Sweden. Umeå-Sundsvall-Helsingborg-Tilbury- other circumstances, says Lars Petersson. In addition to traditional piloting, there Rotterdam route. Captains that do not have There are no economic reasons to is also remote piloting, where the pilot does a dispensation will be given training. choose remote piloting. not board the vessel but communicates with – The Swedish rules for pilot dispensation – It costs about 10,000 kronor to fly the captain from land. A captain can also are among the simplest in the world; a theory in a captain for training. Pilotage can cost apply for a pilot dispensation, which is a test, sailing the fairway once inbound and 17,000 kronor. So in this case just one trip course that authorises a captain to use the once outbound and then the formal exam. has meant a profit of 7,000 kronor, says fairway without a pilot. Our aim is for more vessels to navigate them- ­ Jonas Vedsmand. 14 Source: VTI, the Swedish National Road and Transport Research Institute. Photo: Thomas Johansson

Longer, heavier trains for more energy-efficient rail transportation

For the first time ever, an extra-long train, 730 metres overall, is operating between Gävle and Malmö in a research project entitled Elvis. Longer, heavier trains will make the railways more competitive through better utilisation of rolling stock, personnel and infrastructure since fewer trains will be operating in the railway network.

The first demonstration train, 730 metres New opportunities for the forestry to more energy-efficient transportation long compared to the normal 630 metres, industry with a more profitable railway by rail or to create less disruption- ran from Gävle to Malmö in October. The Transporting more freight in each sensitive timetables. project will study ways of making the rail- ­transportation solution probable means – More efficient transportation way system more efficient by using longer, lower costs as a result of better utilisation makes the railways more competitive, heavier freight trains. of personnel and infrastructure and the providing opportunities to increase the – Longer, heavier trains can make number of wagons per train. Indirect forest industry’s already high proportion transportation more energy-efficient, says positive effects arise from fewer trains of rail transportation still further, says Inge Vierth, Project Manager at VTI, the operating in the railway network. The Karolina Boholm, Transport Director Swedish National Road and Transport capacity that is thus freed can be used at the Swedish Forest Industries Research Institute. either to transfer freight from the roads Federation. 15

VTI VTI, the Swedish National Road and Transport ­Research Institute. Independent and internationally

respected ­research institute in Photo: Skogsindustrierna the transport sector. Principal task: To conduct research and development related to infrastructure, traffic and transport. Operations: Cover all kinds of transport. Organisation: VTI has a total of some 200 employees. The institute’s head office is in Linköping, with branch offices in Stockholm, Gothenburg and Borlänge.

Participating organisations

VTI (project manager), Linköping University, The Swedish Transport Administration, The Swedish Forest Industries Federation and member companies SCA Transforest, Stora Karolina Boholm, Transport Director Enso Logistics, Stora Enso Skog, at the Swedish Forest Industries Federation. SCA Skog and Scandfibre Logistics along with holding companies Holmen, Korsnäs, Smurfit Kappa, Energy-smart name Mondi Dynäs and Billerud. Funding: The Elvis project is Elvis, the name of the project (a play on Swedish words) refers to being partly funded by the Swedish “energy smart” as regards rail transportation, i.e. promote energy- Energy Agency. efficiency through the use of longer, heavier trains.

Preliminary survey by means adjustments need to be made, what Half the forest industry’s of demonstration projects limitations there are in the infra­struc- ­transportation goes by rail A number of demonstration projects ture, etc. The demonstration projects The forest industry’s share of inter­- ­involving longer, heavier trains will will also be evaluated from a network national rail freight was 53% (measured in tonnes) in 2010, not including the Ore Line. The corresponding figure for domestic traffic was 51%. In all, i.e. “More efficient transportation makes with the Ore Line included, the forest industry accounts for approximately the railways more competitive.” 22% of the total freight transport- ation effort on the railways in Sweden (2010). On October 6, the train transported also be conducted during the course perspective, where the impact of train paper products from the forest industry of the Elvis project. These will show path on capacity utilisation, other companies Holmen Iggesund and Korsnäs the potential and limitations of the traffic, sensitivity to disruption and and was operated by Hector Rail and technique, what organisational operators’ needs will be analysed. Green Cargo. 16

Efficient

Text: Mats Wigardt. Photo: IL Recycling logistics the linchpin of recycling

Waste occurs everywhere in society. Approximately 115 million tons were produced in Sweden in 2010. IL Recycling is one of the companies that takes care of household and industrial waste. Efficient logistics using trucks, vessels and trains is then a key factor for increased recycling.

Waste recycling is really nothing new. History of IL Recycling ­Refuse and waste have always been Esbjörn Ulfsäter, Managing Director waste ­composted, used as fuel or reused. And at the Westervik paper mill, understood According to Swedish legislation and alongside more waste being produced that recycled fibre was an important the European Union’s regulatory the waste tends to be used more. production­ factor. framework, waste is a substance or In the paper industry recycled fibre In the early 1950s he therefore felt object that its owner intends or is has been used to manufacture new justified in grouping purchasing and obliged to dispose of. Waste can also paper since the 1930s and is today an collection of recycled fibre in a separate cease to be waste when is used in a almost mandatory raw material in the company, AB Industrileveranser, to secure process and becomes a product. manufacture of many different qualities supplies of raw material to the paper mills of paper. in the province of Småland. 17

Efficient logistics the linchpin of recycling 18

And when Fiskeby AB established a board Waste as a business concept to four million tonnes or roughly 500 kg factory based entirely on recycled fibre, Today society’s environmental awareness per person and year. A third of all waste the two companies began collaborating on has increased and waste has become a is used as fuel and approximately one and procuring recycled fibre. Fiskeby became business concept, surrounded by legislation a half million tonnes consist of recycled part-owner of AB Industrileveranser, and regulations, with a handful of major paper. followed later by Assi Domän – now Smurfit players active in the Swedish market. Kappa – SCA, Hylte and Stora Enso. – But for historical reasons we are still Producer responsibility As new technology began to be used biggest in recycled fibre, even if we also – Much of the recycled fibre is covered by at the paper mill, the demand for recycled handle other kinds of waste, says Markus producer responsibility, explains Markus fibre grew and it became necessary to Ocklind, who is responsible for sales of raw Ocklind. This means that the producer import from other European countries. materials at IL Recycling. is obliged to ensure that the paper that AB Industrileveranser also changed its The largest amount of waste in Sweden is produced is also collected and recycled name, first to IL Returpapper and then is generated by the mining industry. Least in a way that is not harmful to the to IL Recycling. waste comes from households, amounting ­environment. An entire system has therefore been built up to collect paper. In 2008 some 85% of the recycled paper was recovered. IL Recycling plays an important role in all this, as does SCA Transforest. – Every year we transport fully 350,000 tonnes of recycled fibre on behalf of IL Recycling, says Mikael Högström, Sales Manager at SCA Transforest.

Markus Ocklind, “Today society’s environmental responsible for sales of raw materials at awareness has increased and waste IL Recycling. has become a business concept.”

Nordic countries are world-leaders When we’ve read our newspaper we throw it into the recycling bin and from there it’s taken to a local collection centre. And from there to the paper mill where the ink is washed out and the fibre mixed with fresh wood raw-material.

IL Recycling Owners: Fiskeby AB, Smurfit Kappa, Stora Enso and SCA. The company has subsidiaries in Poland and also has operations in Iceland. Turnover in 2011 was approximately SEK 2.2 billion. The company had 721 employees in 2011. Its head office is located in Stockholm. Managing Director is Lars-Gunnar Almryd. 19

– This saves enormous amounts of energy because the fibre in the collected newspaper has already been separated out, Markus Ocklind goes on. Leadership and But for the system to work, a well- developed and efficient logistics system is also needed. And the Nordic countries are the development for trainees world-leaders when it comes to recovering recycled fibre, despite there being vast areas that are distinctly sparsely populated. at SCA Transforest

SCA Transforest covers the Out of approximately two hundred applicants for transportation needs of IL Recycling SCA Forest Products’ 2012–2013 trainee programme – When recycled fibre has been purchased six managed to get through the stringent acceptance and sorted, we use SCA Transforest’s sys- tem with trucks, vessels and trains for our procedure. Kristin Olofsson is one of them. transportation needs, Markus continues. Among other things we are responsible for – A fantastic opportunity to get into a Kristin Olofsson is now permanently supplying the mills in Obbola and Munk- workplace, she says, sitting at her desk at employed as a resource planner at SCA sund with collected corrugated board. Interforest Terminal Sundsvall. Transforest. The 10-month programme The fibre is transported on system She recently graduated from Jönköping also includes study visits and work trains from the terminal in Skövde or as University where she studied industrial experience placements abroad to give the wagonloads direct to Umeå. Large amounts organisation and economics, specialising trainees an overview of the company’s are also transported on RoRo vessels in logistics and management. operations. from Helsingborg. But Swedish supplies of recycled fibre are not enough. A third Rigorous selection process Help to develop and grow

of what is needed in Sweden is covered Now she is responsible for the vessels A common thread through the entire pro- Text: Mats Wigardt. Photo: Sjöquist PA by imports. For this reason, IL Recycling in the port being berthed in the right gramme is that together with a coach and purchases recycled fibre in Europe that is places, personnel being available to drive other trainees, she will also work among then stored at SCA Transforest’s terminals the trucks and freight being loaded on other things with personal development, in Lübeck, London and Rotterdam before the right vessels or taken to the right conflict management and leadership being taken to Umeå by RoRo vessel. warehouse. ­issues, both in groups and by herself. – Considering my education I think – Great, says Kristin. I really feel that Good solutions at low cost I’ve come to exactly the right company, this is helping me develop and grow as a – We are now starting up a new system she says. I like mathematics and problem-­ person. It’s all very exciting. from SCA Transforest; container vessels to solving. Umeå from Stockholm Free Port and Saint When she was looking for a trainee Petersburg, says Markus Ocklind. This will post after completing her degree she allow us to benefit from Russia’s surplus of chose SCA Forest Products in Sundsvall, recycled fibre. where she also has her roots. In our long, narrow country, with a large But it’s been a long road to Interforest part of the population concentrated south of Terminal Sundsvall, with a rigorous the Dalälven River and with many paper selection process to find the most eligible mills that consume large amounts of raw out of 200 applicants. The six who were materials in the northern part, well thought- finally accepted have really had to prove out logistics are a linchpin in the collection, themselves. transportation and reuse of recycled fibre. If the logistics are also efficient this is Strategically important initiative an added advantage in an industry that is – A trainee programme is a major, already under extreme price pressure. ­strategically important initiative where – We and SCA Transforest are therefore the right person must be put in the right striving towards the same goal; good place from the very beginning, says solutions at lowest possible cost, says HR Manager Christina Löthman, who Kristin Olofsson, Markus Ocklind. And I think we’ve come a is ­responsible for SCA Transforest’s now permanently employed as a resource planner at SCA Transforest. good part of the way. ­participation in the programme. Text: SCA Skog AB Communications. Photo: PA Sjöquist 20 have passed the 100-million mark,” says Jörgen Andersson, Head of Norrplant. 100 million plants. “We have never exceeded million 90 before, so delighted Iam that we For the first time ever, SCA’s operation NorrPlant nursery in Sweden delivered more than 100 millionseedlingsdelivered SCA breaks record – 44.5 million were used by SCA, says Jörgen. says by SCA, used were 44.5 million remaining the and owners forest private to SCA’s and forestlands. owners own forest private to both have increased Deliveries factors several to due Record deliveries Andersson. Jörgen explains seedlings, 102.5 was deliveries year’s for the million tally final the books, our we closed when on Later of October. end at the made was delivery final the and April in week last Timrå. outside Wifstamon and Bogrundet nurseries two the passes encom operation SCA’s nursery NorrPlant – We delivered 58 million seedlings to to seedlings – We 58 million delivered the in seedlings delivering – We began

- harvesting,” says Jörgen and continues: continues: and Jörgen says harvesting,” final after forestland the to replant years have three to law, owners forest According harvested. were areas many and forests the in of activity level a high was there more, Further replanting. in resulted by voles year factors. ­several of result the are deliveries record The – The damage to seedlings caused last last caused to seedlings damage – The was 102.5 million seedlings.” million 102.5 was the finaltally for the year’s deliveries “Later on when we closed our books, ­- NorrPlant has sown 107 million seeds. 107 million sown has NorrPlant our nurseries. in volume the increase to considerably us PowerPot enabled has planting. economic and efficient more offers which seedling, small this in interest considerable is There deliveries. in increase of the forsome seedling PowerPot new our thank also – We can Ahead of seedling deliveries in 2013, in deliveries of seedling Ahead

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Interest in participating in SCA’s Capital Market Day in Stockholm at the beginning of November was huge and the approximately 120 investors, analysts and journalists who have registered filled room in photographic museum to the limit. Hed Margareta Photo: Marita Sander. Text: Positive reactions after Capital Market Day

This was the first Capital Market Day for the “new” SCA. After the divestment of its packaging operations and the acquisition of Georgia-Pacific’s European tissue business, hygiene products account for 80% of the company’s sales and forest products for the remainder.

The target for return on capital employed SCA would like to see an establishment. of potential, not least China with its aging (ROCE) has been increased for Tissue from SCA is the world’s largest provider of population that the government wants to be 13 to 15% over a business cycle, and for incontinence products with a market share able to live in their homes as long as possible. Forest Products it was changed from 11% of 25 percent, but there is nonetheless a “In recent years we have worked hard to to being in the top quartile of the sector. huge growth potential in the area. change the culture within the SCA to make The ROCE target for the group, however, Penetration in Europe is as low as 37% it more performance oriented and to move remains at 13 percent. and SCA is working to increase this, not quicker”, said Jan Johansson. “It is perhaps “I feel very confident that we least by breaking the taboos surrounding the most difficult of all, but also what can will deliver on the targets we have incontinence. Emerging markets have a lot give the greatest effect.” communicated”, said Jan Johansson, President and CEO. “One way to improve profitability is by reducing costs and we Substantial media coverage have initiated a new efficiency program within the hygiene operations that will • The media coverage of the event was sub­- our global brands, the agenda for provide annual cost savings of some stantial, with some 300 articles in Tuesday emerging markets, etc. EUR 300 million.” morning’s media monitoring email. • Financial media had a mostly positive Jan Johansson emphasized, however, • Most topics of the day were covered by tone in their analyzes. the importance of having the courage to the news wires. Much about the cost • Local media mostly focused on the staff invest for growth, not least by focusing on and productivity program, but also reductions and how it may affect local innovation. Growth will also derive from about SCA’s changed financial targets, operations. new markets and India is a market where 22

New paper opens new markets

Lars Lindgren, Business Development Manager for graphical paper at SCA Forest Products, says that Ortviken’s new Text: Olof Wigren. Photo: Sjöquist PA newsprint GraphoInvent is like a Kinder Egg. Compared to paper of the same quality it can have a lower weight, cost less to distribute and have less impact on the environment. That makes three surprises in one and the same product. It also opens new markets, first and foremost in Europe.

The background to the new paper is a – In a situation where everyone is 350-million SEK investment that SCA looking to reduce their costs this is Ortviken decided on in autumn 2011 and a product that is definitely in tune with was given the name Bright Future, the aim the times. of which is to develop products that are even more competitive based on all the Expansion and increased capacity advantages of a modern, flexible paper GraphoInvent’s weight is 70 grams and mill and what the market looks like. it is the thickest paper that Ortviken has – We looked at possible alternatives ever produced on its PM 5 machine. to standard newsprint and decided on Ortviken is the world’s sixth largest paper GraphoInvent with its many advantages. mill and manufacturing GraphoInvent has

“Our standard newsprint went to major customers and well-known destinations in a steady flow. GraphoInvent is changing all that.”

In addition to it feeling thick without required improvements in the form of being heavy, it also has greater opacity. strengthened infrastructure and more This means that the print does not show energy-efficient ways of working. through, as is often the case with similar – We have both increased capacity products. in the bleach plant and expanded the factory, says Lars Lindgren. High quality impression for magazines meant both changes in marketing and – The end result is printed matter that gives Attracts new target groups many new customer contacts. a real impression of higher quality and feels GraphoInvent has been developed and – Our standard newsprint went to more exclusive but that can be printed on analysed very carefully and began to be major customers and well-known and distributed at lower cost, Lars Lind- offered to customers during the second half ­destinations in a steady flow. Grapho­- gren goes on. of 2012. Its special characteristics make it Invent is changing all that. It is of The paper is particular good for attractive to new and greater numbers of interest to many more but smaller all types of mail shots and specialty target groups than the paper previously ­customers and shipments go to many magazines. produced at Ortviken, which in turn has more destinations. Delivery reliability 23

GraphoInvent’s special characteristics make it attractive to new and greater numbers of target groups than the paper previously produced at Ortviken. The paper is particular good for all types of mail shots and specialty magazines.

and speed are often crucial, says Lars Business Development at SCA Transforest, our well-developed IT system, to which Lindgren. And this is one of our strengths says that the company is accustomed to Ortviken is connected, a strength and a because SCA Transforest’s logistics handling both large and small orders at its prerequisite for handling small orders down concept is both efficient and known terminals and on its vessels in Europe and to single reel level. for keeping to schedule. groups small orders in order to for example – What is most important for us is that keep road transportation costs down. our customers can develop new, competitive Groups small orders – Consignments from SCA Ortviken products so that we can continue to develop to keep logistic costs down are shipped as before – by truck, vessel our logistics concept in a long-term pers­- Nils-Johan Haraldsson, VP Marketing & and train through our terminals. This is pective, says Nils-Johan Haraldsson. Text: Olof Wigren. Photo: Andreas Näslund 24 View from Vättaberget, Liden, Sundsvall, Sweden Sundsvall, Liden, Vättaberget, from View The positive net value is up to two and ahalf times high. as fromprocess when the forest isun used of dioxide carbon that the forest absorbs fa to the operations on at its carried variou show New factories. calculations s that the amount SCA doesits to best ensure enviro less SCA consumes more carbonthan The forest binds nmental impact in everything from transportation til the customer receives adelivery of paper. r exceeds the emissions that take place in the

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Christer Fält, Environmental Manager at ment, says Peter Ericsson, Logistics and – They deliver green electricity to the grid Ortviken and chair of SCA Forest Products’ Environmental Manager at SCA Transforest. in addition to providing the factory with environmental council, has coordinated an – There are those who would claim energy. The forest binds analysis of the carbon footprint of a ton that the forest is there anyway and that of Forest Products paper manufactured in its contribution to the climate is first and New lime kilns reduces Ortviken and delivered to London. In the foremost to remain in place and store the plants environmental impact figure alongside you can see exactly how carbon. But with active forestry the forest SCA has also fairly recently invested in a more carbon than the calculation was made. grows better and binds even more carbon lime kiln fired by wood pellets from SCA The analysis includes everything, i.e. dioxide. If we then use the forest to replace BioNorr in Härnösand at its Östrand from forestry, transportation of the raw materials and fuels that have a negative pulp plant, and has decided to make a material, production, and transportation impact on the climate, the effect is even similar investment at the Kraftliner mill SCA consumes of the finished product. This has been set greater, he continues. in Munksund.­ The new lime kilns replace against the net growth of forest and the oil-fired lime kilns, reducing the plants’ carbon dioxide that this absorbs, which Boilers provides factory with energy environmental impact. amounts to much more than is emitted. Another contributing factor to a positive Peter Eriksson says that the result of outcome, in addition to forestry, is that the calculation shows how successful With active forestry a great many measures have been taken SCA’s environmental efforts have been the forest grows better to reduce emissions, one of which is the and adds more weight to the continuing – The conclusion is very interesting and ­installation of new soda recovery boilers objective of reducing environmental gratifying from the point of view of the environ­ at SCA Östrand and Obbola. impact even more.

SCA and CO2 The carbon footprint of one tonne of GraphoCote delivered in London

Mill CO2 emissions -187 kg (of which 118 kg is from purchased energy)

Transport CO2 emissions -89 kg Carbon in product +1063 (290 kg C) Share in net growth +518 kg Share in biofuel substitution +179 kg Text: Marita Sander. Photo: PA SJöquist 26 owners. forest forsmall particularly of forestry, types to different relevant FSC make and rapid growth FSC’s managing market, the and stakeholders among credibility FSC’s to strengthen years; coming the companies. industry forest among Swedish certification forest on project acollaborative heading also 2011, is Since he globally. supply chain Ikea the in conduct forestry and mental environ social, for quality, responsible and Sweden in at SCA Forester Chief including forestry, and industry forest the from experience extensive has Hans years coming the in FSC Three challenges for continues. he requirements, and systems different to implement forcompanies it means of what understanding of deep to a lack led has which industry forest integrated or owners forforest representative direct no been has there years, recent – In Djurberg. Hans says management, senior FSC’s in voice a has we represent management forest the that importance of great it is and elected proud to have been very – Iam forestry,on both nationally. globallyand recognized and available platform the most important for dialogue the board of FSC International. FSC (Forest Stewardship Council) is Hans Djurberg, Sustainability Director at SCA, elected has been to BoardInternational ofDirectors SCA colleagueelectedtotheFSC He sees three challenges for FSC in in forFSC challenges three sees He in FSC’s senior management.” senior FSC’s in voice a has management represent we is“It of great importance that the forest

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recent years. in significantly have increased products forFSC-certified demand and deliveries since perspective amarket from but also brand, SCA the awayas to position both importance, great is of fication SCA’s certi auditors. FSC pendent by inde made are audits FSC The certified. FSC is forestland entire its and products, FSC-labeled of producer world’s the is largest SCA is FSC certified SCA’s entire forestland Hans. says UN, the from recognition strong received recently organization the and port sup astrong such has FSC Therefore industry-driven. are that initiatives cation certifi to other compared unique FSC making consensus, in made are decisions all and weight, equal carry votes – All countries. developing and oped devel from interests economic and social environmental, members representing nine of consists board international FSC’s Strong recognition from the UN - - - -

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World’s biggest atomic icebreaker showing the way in Russia

A new generation of atomic icebreak- ers, which will be the biggest and the most powerful in the world, is under development at the Baltiyskiy Zavod shipyard in Saint Petersburg, Russia. The client is the Russian state shipping line Rosatomflot and the order is worth EUR 918 million. Source: Sjöfartstidningen. Photo: Fürst Heimo

Will cut through ice three metres thick With dual reactors and an output of 60MW the vessel, the technical project for which was executed by Iceberg, will be able to cut its way through ice three metres thick. The vessel, 173.3 metres

Jörgen Bendz, Timber Manager at SCA Skog, assisting municipal in length and 34 metres wide, will have commissioners Sverker Ottosson and Sten-Ove Danielsson as

Text: SJöquist. PA Photo: Lars Stefansson a draught of at least 8.55 metres. they reopen Östavall’s refurbished timber terminal. It is scheduled to be launched in 2015 and delivered in 2017. SCA timber terminal in Östavall reopens

After four months of refurbishing, the Östavall timber terminal is open again. The terminal now has among other things a completely new loading area for biofuel.

Upgrading the terminal has cost SEK terminals as well but for that we need 36 million, which has been spent on asphalt- a properly functioning rail network. ing, modernising the railway siding, and a Unfortunately, many cross-country lines completely new loading area for biofuel. from inland areas to the coast are today – This investment will make it much either closed or in very poor condition, easier for us to handle biofuel. Previously the says Jörgen. Municipal commissioners loading truck had to drive 120 kilometres to fill all the wagons on a train but now we can load it driving a much shorter distance “This investment will so loading is faster, cheaper and more environmentally friendly, says Jörgen make it much easier for Bendz, Timber Manager at SCA Skog. us to handle biofuel.”

More environmentally friendly transport system Sten-Ove Danielsson from Ånge and Upgrading the timber terminal in Östavall Sverker Ottosson from Sundsvall took part is part of SCA’s efforts to make its trans- in the reopening ceremony on October 9. portation more environmentally friendly. They opened the terminal together by – We want to develop our other timber cutting a yellow ribbon. From SCA Transforest to you 10,000,000 tonnes of goods and Season’s Greetings

We look forward to a happy and prosperous new year. 2013 is coming with new opportunities, improved services and new transport routes. Join us on the journey and let us sharpen your competitive edge.

scatransforest.com [email protected]