The Gothenburg Gateway 1

APM Terminals Gothenburg The Gothenburg Gateway A shorter distance to world markets benefits all of Sweden

Fast, efficient logistics solutions for the world market

Competitive transport combining rail, container terminal and ocean-going vessels

Low environmental impact

High flexibility and room for growth 2 The Gothenburg Gateway

GATEWAY /ɡeɪtweɪ/ Noun

1. An opening that can be closed by a gate. 2. A device used to connect different networks. 3. Gothenburg (For us, the Gothenburg Gateway defines the Port of Gothenburg’s role as Sweden’s port for goods transport. Nearly half of all containers travelling to and from Sweden pass through Gothenburg. Strengthening this goods transport hub – the Gothenburg Gateway – with better rail connections and development of the port will improve goods transport efficiency for all of Sweden.) The Gothenburg Gateway 3

Along the major trade corridors

Gothenburg was founded as a maritime and trading city. a 24-hour period. Large-scale container traffic therefore The successful trade route between Gothenburg and requires advanced technology and well-integrated IT China was established in the 18th century. Trading ves- systems. Just around the corner are automation, self-dri- sels grew in size, and efficiency was improved in the late ving machinery and better IT solutions. 19th century by extending railway tracks all the way to Intermodal goods transport is on the rise as companies the docks. Sweden developed numerous contacts with demand faster, more eco-friendly transport solutions. the outside world, with the first vessel travelling directly This entails transporting a container by several different to New York in 1915. means, such as ship, rail and car. These intermodal Technology at the ports developed by degrees. The combinations can help reduce road transports and container system was the most significant innovation climate emissions. in this development, introduced in the late 1950s as 90 percent of all goods travelling to or from Sweden the brainchild of haulier owner Malcolm McLean. The passes through the country’s ports. Goods need to standardised container lowered the cost of international arrive quickly to the port, be quickly checked in, and not trade and dominates world trade today. The traditional lie around too long waiting for a ship. Because Sweden image of a harbour where bulk goods are loaded onto is characterised by long distances and is far from world vessels is now history. markets, the transport flow needs to work efficiently. With larger vessels, port calls are fewer in number but APM Terminals is focused on Gothenburg having a larger in size. Container traffic entailed investments and world-class container port and safeguarding its position increased traffic at some ports, and a decline at others. along the major trade corridors. This is important for Competitive container ports need the capacity to load Gothenburg and for all of Sweden. and unload 3,000–5,000 containers from a ship within

• APM Terminals is one of the world’s largest port operators and has been operating in Gothenburg since 2012 • Part of A.P. MoellerMaersk­ • Operates 74 ports and has five ports under construction • Every eight minutes, APM Terminals receives a vessel call somewhere in the world • Operates over 100 inland terminals

58 22 000 countries employees

The container port in Gothenburg, the largest in the Nordic region, has been operated by APM Terminals since 2012. 4 The Gothenburg Gateway

The Gothenburg Gateway

Nordic region’s largest container port “The port is more stable than it’s ever People moving through central Gothenburg will barely notice the been. They have made major invest- continuous flow of goods at the port. Of the 20,000 containers ments and continue to invest and handled in Sweden every week, more than 8,000 are handled at APM Terminals Gothenburg – which makes the terminal the report their key ratios.” largest in the Nordic region. But although no other Nordic port comes close to Gothenburg in volume, the port’s container flow Comments from forwarding company in may still not be large enough to attract large vessels. 2018 customer survey Sweden is situated at the end of the world’s largest trade corridor: Asia–Europe. The Port of Gothenburg is this corri- dor’s actual terminal point. The large ocean-going container ships that currently form the backbone of world trade travel to Gothenburg – in the best of cases. If the container flow at Gothenburg increases, more ocean-going container ships will be able to go all the way there. If not, Sweden risks ending up on the sidelines of the world trade motorway. 41% Gothenburg’s location is advantageous, with only 90 minutes needed for inward-bound vessels to travel from open sea to the dock. From the port, 70 per cent of Sweden’s population – as well as Oslo and Copenhagen – can be reached within five hours. APM Terminals Gothenburg’s share of APM Terminals has 25 daily rail shuttle departures to over 300 container market in Sweden destinations in Sweden and Norway that reach cargo owners.

A large ocean-going vessel at APM Terminals Gothenburg is simultaneously serviced by six cranes. Large capacity reduces berth idle time. The Gothenburg Gateway 5

Major investments The major investments made by APM Terminals Gothen- This matches volumes at major European ports, and was burg to increase capacity and efficiency have produced made possible thanks to new technology, skilled employ- results. 2018 was a good year, with increased volumes. ees and good co-operation with customers. For the first time in its history, the port was open every Investments also need to be made outside the harbour. day, including public holidays. Efficiency – measured by Many containers come to Gothenburg on long freight number of hours worked – improved thanks to better trains, with the rest delivered by truck. Future increases in work methods and better technology. Handling time at container traffic will need to be based on railway traffic – the truck bays was reduced 40 per cent, and customer due particularly to climate considerations, and also to cre- surveys showed increased customer satisfaction. ate efficient large-scale transport solutions able to collect The investments have also produced results in the form of a large amount of goods in one place. The opportunity to record-setting numbers. In January 2019, 4,350 contai- attract more ocean-going container vessel to travel all the ners were loaded and unloaded during a vessel call – a way to Sweden depends on our ability to create efficient new record for Gothenburg and the entire Nordic region. goods transport by rail in Sweden and Norway.

APM Terminals has invested over one billion Swedish crowns to enable reception of the world’s largest ocean-going vessels and offer modern, world-class logistics

• 24 new diesel-electric straddle carriers • Two Super-Post Panamax cranes (largest class for loading and unloading the largest vessels – 60 metre outreach and 46 metre lift height) • Two new railway cranes • Seven new Reachstackers (large counter­ weight trucks for lifting heavy containers) • New terminal area design to improve security and working environment • Self-service gate for trucks • New digital solutions for railway 6 The Gothenburg Gateway

Sweden’s imports and exports

140,000

120,000

100,000

80,000

60,000 Import Export 40,000

20,000

0 2004 2006 2008 2010 2012 2014 2016 2018

Foreign trade in goods. SEK million at current prices. The trend is increasing for both the export and import of goods. Source: Statistics Sweden

Closer to world markets trans-shipped to a larger vessel arrives Shanghai, China, in 42 days. If the same container were loaded on a train Sweden is export dependent. A well-functioning flow of in Södertälje and delivered to Gothenburg for direct goods is therefore crucial to our competitiveness. Inadequ- loading on a large ocean-going vessel, it would arrive in acies in the goods flow chain often result in extremely high Shanghai in 35 days. In addition to time saved, the risk overhead costs for companies and consumers. Trans-ship- of damage is also reduced. ments delay transports and increase costs, which in the long run makes Swedish companies less competitive. The number of trans-shipments is reduced in direct proportion to the number of major direct lines running The use of feeder vessels is the alternative to having all the way to Sweden. A container carrying important large ocean-going vessels running all the way to Sweden. goods from Asia to Sweden should not need to be Feeder vessels transport goods from Sweden to some trans-shipped in the Netherlands, but should rather larger Northern European port, where they wait to be be transported directly to the Port of Gothenburg. A trans-shipped to a larger vessel. Loading the goods container from Dalarna should not be trans-shipped in directly onto a large vessel in a Swedish port would Hamburg, but should be transported directly to wherever achieve significantly greater efficiency. in the world the customer is waiting. More direct lines An example of the difference in transport time: a and fewer trans-shipments reduce transport time and container in Södertälje loaded onto a feeder vessel and move Sweden closer to world markets.

42 Sweden Shanghai days

35 Sweden Shanghai days

Transport by large ocean-going vessel directly from Sweden reduces transport time by one week. The Gothenburg Gateway 7

Direct lines with large ocean-going vessels One large ocean-going container vessel per week makes a port call at the Port of Gothenburg. The number of direct ocean-going lines needs to be increased to further develop Sweden’s goods transport to and from the rest of the world. One week is saved on transports between Sweden and China if containers do not need to be trans-shipped along the way. Besides improving efficien- cy, the increased use of direct ocean-going lines would have major environmental benefits. Today’s ocean-going container vessels are around 400 metres in length and can carry up to 22,000 containers. These vessels only travel between a handful of base ports, which need to have a sufficient flow of containers for loading and unloading, as well as the largest cranes and a depth that can manage heavily laden vessels. An ocean-going vessel of the largest Triple E class being loaded and unloaded in Gothenburg. The Triple E is 400 metres in length The Port of Gothenburg is Sweden’s only base port. It al- with a fully loaded draught of 15 metres. Due to its limited depth, ready has the capacity to handle the largest ocean-going the Port of Gothenburg cannot utilise the vessel’s full capacity. vessels, thanks to its large cranes, facilities for large- scale rail transport, and smooth inward-bound travel. However, the port is not deep enough to allow the largest draught for underway ocean-going vessels. With a vessels to be fully loaded. Gothenburg’s loaded draught deeper port in Gothenburg, Sweden would circumvent is currently only 13.5 metres. This is a major limitation, this limitation. Vessels that currently operate in the since Gothenburg is the first and last stop on the trade Baltic Sea without being able to fully utilise their capa- route between Europe and Asia. Rotterdam, by contrast, city would be able to call at the Port of Gothenburg for can utilise vessels’ entire loading capacity thanks to its additional loading. deeper port. According to a study by the Swedish Trans- port Administration, in order be deep enough to utilise Improved railway transports would also allow the trans- the entire capacity of large ocean-going vessels (16–17 port of even more containers to Gothenburg. metres), the shipping channel into the Port of Gothen- Gothenburg has been a hub for world trade since the burg needs to be deepened by around four metres. 1700s – but this position is not a given. Only by deve- Denmark’s Belt Sea currently limits all shipping to and loping can Gothenburg continue to fulfil this role. More from the Baltic Sea area to approximately 15 metres direct ocean-going lines need to stop in Gothenburg.

1970 1980 1985 2000 2012

2019 2,200 3,400 4,300 8,000 12,500 23-24 containers side-by-side

20 000 containers in total

10 >16m containers 10-11 draught containers 11-13 containers 13-17 17-22 9m containers containers draught 10m 12,8m draught draught 14m 15m draught draught

The size of ocean-going container vessels has increased, which affects the ports. 8 The Gothenburg Gateway

What researchers say about the future of ports

”Good transports to and from ports is essential”

What are the trends in logistics and shipping? “In addition to IT and digitalisation, good transports to and from the ports are becoming increasingly important – preferably with high- capacity transport modes such as railway. Studies I have done in the USA show that port operators have become very keen to improve the entire supply chain, including dry port facilities (inland terminals) and developing rail services to and from these facilities,” says Violeta Rosa, logistics researcher at Chalmers.”

What investments are needed for Gothenburg to become a more significant global port and attract more oce- an-going vessels? Violeta Roso, PhD and Lecturer, Department of Technology ”The Port of Gothenburg is already a significant port, and it has been Management and Economics developed quite a lot. It is the largest container port in the Nordics, and at Chalmers University of one of few in the world that already transports over 40 per cent of its Technology containers by rail. Many other ports are trying hard to achieve this. Go- thenburg has had study visits from people from other parts of the world who want to see how we have succeeded.” ”Large goods volumes, which Sweden does not have, are needed to att- ract large ocean-going vessels. With Rotterdam nearby, it is not easy to “Gothenburg is one of few compete. But good transport solutions to and from the port can increa- se goods volumes and attract more large vessels. This is something that ports in the world that already many ports forget in favour of investing in developing the port area.” transports over 40 per cent of its containers by rail.” What role will digitalisation and modern technology play in the ports of the future? ”It is already playing a major role. Many ports have been able to develop thanks to digitalisation and good IT services. Tauranga, a challenger in New Zealand, has gained competitive advantage over Auckland thanks in part to good IT systems for container handling, tracking, loading and unloading.” ”New digital tools such as IoT, sensor technology, blockchain and automation can make processes more efficient and improve transpa- rency, seamless integration with other modes of transport, and speed. Automation is, of course, already an important component in container handling.” The Gothenburg Gateway 9

”Combi terminals fill an important function”

Who is driving development of the ports? “The power of the customer – the shippers – is underrated. It is the customers who can drive the development of combi terminals, which fill an important function in the transport system. I think many shippers tend to do what they’re used to doing, and choose an easy, short-term solution – meaning that goods travel by truck all the way to the port. So it is important that the ports work together more with the customers to create efficient, large-scale rail solutions. The combi terminals throughout the country, where goods are trans-shipped between truck and rail, are not a bad so- lution,” says Professor Johan Woxenius of the Gothenburg School of Business, Economics and Law. “Large shippers can gain from reconsidering their logistics stra- Johan Woxenius, Professor of tegies. Things usually happen when major operators impose rele- Maritime Transport Management vant demands – such as collaboration along the transport chain and Logistics at the Gothenburg and intermodal integration between different types of transport. School of Business, Economics This can improve efficiency and reduce lead times, emissions and and Law. costs, as well as generate revenue for all parties involved.” “The behaviour of the various transport operators cannot be underrated. Environmental sustainability depends not just on technological change, but also on behavioural change.”

”I think many shippers tend to do what they’re used to doing, and choose an easy, short-term solution – mea- ning that goods travel by truck all the way to the port. So it is important that the ports work together more with the customers to create efficient, large-scale rail solutions.” 10 The Gothenburg Gateway

Time to take the next step

We are proud of the successes achieved by APM Terminals Gothenburg and of the Port of Gothenburg’s position as the Nordic region’s largest container port. But neither we, the City of Gothenburg, nor Sweden should be satisfied with that. It is time for The Gothenburg Gateway to take the next step.

Never more than 48 hours! One large ocean-going vessel every three days Transports are important for an export-dependent With good rail transport and more direct shipping lines, country like Sweden, so it should not take more than Swedish companies’ proximity to world markets will be 48 hours for a container placed on a goods train comparable to that of any other European country. somewhere in Sweden to be loaded onto a large So more large ocean-going vessels should call at Go- ocean-going vessel. Our goal is to ensure that all thenburg. The goal is one call every three days, or more parts of the country, including small towns far from often. Currently, there is one call per week. Rather than Gothenburg, have the same rapid access to world having many small feeder vessels and many time-consu- markets. The Gothenburg Gateway is the key to ming trans-shipments, the goods are moved on large, achieving this goal. efficient vessels directly to other parts of the world. A container can reach Gothenburg overnight from The global container market has been consolidated in much of southern Sweden. Beyond that, APM recent years into three alliances, which together account Terminals considers it possible to establish fast rail for 75 per cent of global container traffic: freight links with other areas in Sweden as well, to ensure that the entire country has fast freight links with the Nordic region’s largest container port. A container from a city like Piteå can reach Gothenburg within 24 hours if the necessary collaborations are in place. This would allow Piteå to place a container on a large direct line within 48 hours at most, including transport time, receiving and loading. The paint on wood products from Piteå would scarcely have time to dry before passing the Vinga Lighthouse on one of the world’s largest container ships, on course for Asia! The Gothenburg Gateway 11

The creation of the major alliances may involve more calls ”We have looked together at all solutions and taken to a port, since the shipping companies within an alliance more action than just rebuilding the roads. Changes may collaborate on transit assignments. The alliances also drive development towards large-scale solutions – have also been made to work methods on the docks. i.e. large vessels, which in turn require ports with high We tested many proposals and together came up capacity and good inbound and outbound infrastructure. with a work method that is safe, efficient and, above The goal of increasing the number of calls by large all, environmentally friendly.” ocean-going vessels can be achieved if more goods are brought to Gothenburg by rail. The goal cannot be achieved Johannes Rudevärn, Project Manager, APM Terminals by only increasing truck traffic. Rail solutions are required Gothenburg due to climate impact and other considerations – including the long distances involved in reaching all of Sweden. Gothenburg also needs to consider Norway’s transport requirements. Many Norwegian shippers are located Transport of a 20-foot container close to Gothenburg, but the railway connection between weighing 16 tonnes Gothenburg and the fast-growing Oslo area is poor. It is therefore time for Sweden and Norway to start a meaning- Alternative 1 ful discussion about creating a complete main line along Gävle - Rotterdam - Shanghai the west coast to link Copenhagen, Malmoe, Gothenburg by feeder vessel to Rotterdam and Oslo. 3.7 tonnes CO Climate-efficient transport 2 Climate change is one of the greatest societal challeng- es of our time. The transport sector is facing a major Alternative 2 conversion. The combination of rail transport and large Gävle - Gothenburg - Shanghai ocean-going vessels is unbeatable from a climate per- by rail to Gothenburg spective. The average age of the fleet of large ocean-going vessels is also lower than that of smaller feeder vessels. 3 tonnes CO2 Intermodal goods transport, where combi terminals trans-ship goods from truck to large-scale freight shuttles, is an efficient way to remove truck traffic from the road The alternative using rail transport to Gothenburg and direct network. An annual 53,000 tonnes of carbon dioxide shipping vessel produces climate savings of 19 per cent. (APM emissions are already saved today thanks to Sweden’s Terminals calculation) freight shuttles.

CO2 emissions of various types of transport in grams per tonne-kilometre (CO2 g/tkm)

Intercontinental air freight 584

Truck, EU, 34–40 tonnes 71

Container 36 feeder

Goods train, EU 22

Large ocean-going container ship, 14,000–18,000 TEU 9

Goods train, Sweden, 0.35 run on green electricity

Climate impact of various types of transport. Source: www.transportmeasures.org. 12 The Gothenburg Gateway

Measures to come closer to world markets

Modern ports are digitalised operations and resulted in major efficiency improvements, better For the past several years APM Terminals has had the service and greater transparency. same terminal operating system, Navis, as that used by But digitalisation efforts are still 70 per cent of all container terminals in the world. The in their infancy. Port operators like -40% system has improved terminal management efficiency APM Terminals, and the Port of by, for example, specifying the fastest routes for straddle Gothenburg in its capacity as Port carriers to take in the terminal. Navis also improves the Authority, need to invest more in interface and digital data exchange with customers, digitalisation. A comprehensive In 2018 truck including planning and payment details. The system will investment is required to connect handling time continue to be expanded and improved. all ports with customers, inland decreased 40 per cent year-on-year Thanks to APM Terminals’s digital Track and Trace carriers, shipping companies and initiative, customers can now digitally check the status other transport chain operators. of containers at the terminal. With the new self-service gate, truck drivers can manage their business on their Focus on skills own. Equipment automatically scans and photographs As new technology is introduced, skills requirements the containers and vehicles to verify that everything is also change for port employees. Employees will need to correct, which increases the number of service hours take on more and more responsibility for planning and per day. With longer opening hours, the port’s customers service at the port. Future logistics operators will need can use their trucks more efficiently. to have multiple skills, so ports need to focus heavily on One obvious result of these changes is a reduced both training their personnel and on recruitment. handling time for trucks. With an average gate handling APM Terminals collaborates with Chalmers University time of 26 minutes, APM Terminals Gothenburg is of Technology and the Gothenburg School of Business, well under the European average of 56 minutes. Economics and Law to spread awareness about modern But according to APM Terminals’s customer surveys, logistics and to gain new expertise by developing con- customers want this time to be reduced even further. tacts with researchers and universities. APM Terminals is Work is underway to achieve this, and 2019 will be the part of the programme council for International Logistics first year in which the self-service gate system is fully at Chalmers. The course focuses on logistics, shipping, implemented. economics, law and management, so it is highly aligned Digitalisation has already fundamentally changed port with modern logistics flows.

”We have a high rate of change, which requires a systematic perspective on problem solving”

What are the advantages of having studied International Logistics at Chalmers? ”My studies taught me how to solve problems systematically, which is a great advantage in my current job as Quality Officer. The high rate of change at APM Terminals requires us to be organised and structured. “As Quality Officer, I work with changes in terms of both quality and working Nasuh Gürkan, HSSE Quality environment. I am involved in influencing a very important link in Swedish foreign Officer, APM Terminals trade. That is the best thing about my job at APM Terminals Gothenburg – working Gothenburg at the centre of logistics.” The Gothenburg Gateway 13

APM Terminals is also involved in a range of research projects, including “Rail service is only so-so compared DREAMIT, which is focused on improving resource efficiency in intermodal with Finland and Russia, where trains transport systems by applying digital information sharing and greater interaction between shipping, road and rail operators. always run regardless of weather conditions. We need infrastructure Transport to and from the port investments in Sweden before we can As a transport hub, Gothenburg needs to attract greater volumes of move goods in the way APM Terminals goods so that more large ocean-going vessels can service Sweden. The wants.” national strategy should take this into account, which includes investing in large-scale rail solutions that can transport more goods to Gothen- Freight broker in 2018 customer survey burg in a climate-smart way. This would allow achievement of the goal of coming closer to world markets. “Very good. The problem isn’t the One ambition is to double the volume of goods transported to the port by rail by 2022. With efficient rail transport, goods can come directly to Port of Gothenburg or APM Terminals. Gothenburg rather than being hauled around by truck and trans-shipped We’re happy with them and they’re multiple times – saving time and improving climate efficiency. easy to work with, and they’ve made Customers would like better transports to and from the port, as shown in many improvements for trains as well APM Terminals’s 2018 customer survey. as trucks. The problem isn’t the port, Customer voices it’s the connections to get there.” At the end of the day, it is customers who determine which transport so- Freight broker in 2018 customer survey lutions Sweden will have. Construction of an efficient, large-scale rail and ship goods transport system therefore needs to take customer needs into account. APM Terminals meets shipping agents and cargo owners on a daily basis. The port is handling large volumes again, and 2018 was a very good “It would greatly simplify things if year. Today’s customers are placing greater demands on APM Terminals the port succeeds in improving rail and other operators, including demands for better advance information connections and increasing flexibility through digital solutions, even faster handling times, and greater flexibility. for rail solutions – especially in terms APM Terminals is working to implement these improvements. Customers also highlight the importance of better transport to and from the port. of ensuring that all units can be com- bined with rail solutions.” Customer survey responses not only show that rail transports are impor- tant, but also that consolidation of rail transport’s role requires colla- Shipper in 2018 customer survey boration between multiple operators: customers, rail operators, APM Terminals and the Swedish Transport Administration, which is respon- sible for the infrastructure.

APM Terminals’s newly installed self-service gate for trucks. 14 The Gothenburg Gateway

APM Terminals’s message to Sweden

Sweden is good at logistics. But Sweden can be even better, and The Gothenburg Gateway is the key to success.

Sweden is on the sidelines of world trade motorways, Our top priority is providing Swedish exporters with which are currently dominated by large ocean-going the best possible access to world markets and ena- container ships. We also have long domestic transport bling Swedish importers to collect their goods from distances, which place Swedish companies far from suppliers across the globe. The Gothenburg Gateway world markets. We need to do all we can to shorten this will be the alternative of choice for Swedish industrial distance. This would benefit all of Sweden, not least and retail companies by offering: the country’s most remote areas. • The fastest logistics solution on the world market The fact is that Sweden’s proximity to world markets • The greatest flexibility and scope for future growth can be comparable to that of any country in Europe. It should be possible for a container loaded onto a train • The most competitive and sustainable combination somewhere in Sweden to be placed on a large oce- of rail, container terminal and ocean-going vessel an-going vessel, and pass Vinga Lighthouse on direct network route to Asia, within 48 hours. This goal is within reach. The Gothenburg Gateway is a benchmark for the fu- Achievement of this goal requires four things: ture. We hope it leads to local and national initiatives by companies, organisations and public operators 1. A world-class container port with capacity for 4,000 to create growth and improve competitiveness with container moves per vessel call. efficient, sustainable transports. 2. Sufficient water depth for fully loaded ocean-going I believe that The Gothenburg Gateway will become a vessels. reality. Sweden cannot afford to stand on the sidelines. 3. Flexible rail transport to and from all of Sweden, reaching Gothenburg within a maximum of 24 hours. 4. Efficient logistics solutions at the container port, with room for increased logistics management and digital infrastructure that provide accessibility and advantages to all logistics chain operators. APM Terminals Gothenburg has begun its transforma- tive journey. We have improved our customer service with innovative digital solutions focused on making it easier for our customers to plan and track cargo and gain access to simpler, more efficient work processes. We will continue to improve productivity by working with LEAN across the entire business and strengthening our offering as the most efficient alternative in Sweden. We are also heavily focused on skills training for our employees in order to continue developing our offering. A great deal of knowledge is shared across APM Termi- nals’s global operations, enabling an increased rate of Henrik Kristensen, development. CEO, APM Terminals Gothenburg The Gothenburg Gateway 15

Contact

APM Terminals Gothenburg AB +46 (0)10 122 20 00 Box 2125, Indiska Oceanen 11, Port 4 [email protected] 403 13 Gothenburg, Sweden apmterminals.com

LAT 57.702510 LONG 11.858440 16 The Gothenburg Gateway