scalogistics.se

NEW WAYSNUMBER TWO | 2016

Ready for new routes

New container crane up and running

Ready for compulsory container weighing

Future motorways of the sea

with smaller volumes. Here we work together with Port of Kiel, who are doing a fantastic job to finalize a large investment programme in order to meet our demands regarding service and efficiency.

We have in recent years worked a great deal with efficiency at our terminals and have succeeded in becoming more efficient. All changes in our new distribution system have been made with further increased efficiency as the main criterion. Efficiency will also be one of the main focus areas in the future for us to be able to give all our customers high-quality service. We are prepared for change and look forward to serving you in the future.

I would like to wish all our readers a really good summer.

You can read more about the different sub-projects in this number of New Ways. Big changes will be taking place within our shipping systems with totally new schedules and a change from RoRo to more containerised cargo. In order to facilitate

this we have also launched a number of projects and investments to be able to handle this shift at our terminals. In Umeå and Sundsvall, new heavy mobile cranes have been acquired and in Sundsvall we successfully began test runs during week 19 and will continue to test and approve the new crane’s functionality over the coming month. In Umeå, the crane is at present being assembled and test runs will be able to begin in early June. Investments also include a new container handling area and container stuffing station in Sundsvall and a container stuffing and unstuffing station at our Rotterdam terminal.

In order to make our distribution systems more efficient, we have also decided to relocate our operations in the UK from Tilbury to Sheerness and from Lübeck to Kiel in Germany. The move in the UK has already been completed and we are fully up and running with the new Sheerness terminal set-up in cooperation with Peel Ports. Our facilities in Kiel will be fully operational by October 1, but we have already started to call at Kiel once a week

Publisher

Nils-Johan Haraldsson

Editors

Jennie Zetterqvist

Linn Madsen

Carl Johard

Editorial staff

Björn Lyngfelt

Henrik Fälldin

Katarina Nordensson

Lena Zetterwall

Mikael Högström

Cover photo:

Linda Snell

Translation

Semantix

Production

Frosting

Kommunikationsbyrå

Printing

Kaltes Grafiska,

Sundsvall

Inlay

SCA GraphoSilk 90 g

Cover

Invercote Creato 260 g

Comments

SCA Logistics AB,

Box 805, SE-851 23

Sundsvall, Sweden.

Tel. +46 60 19 35 00

info.logistics@sca.com

New Ways is printed at an

FSC certified printworks and

on FSC certified paper.

Throughout the production

process, the environmental

impact is kept to an absolute

minimum, with a view to

promoting responsible

use of the world’s forests.

NEW WAYS | NUMBER TWO | 2016

Prepared for change

EDITORIAL

At SCA Forest Products, recent years have proven our belief in the future with major investments in our saw mills, paper mills and most recently the huge investment of 7.8bn SEK in new pulp capacity at the Östrand pulp mill. All of this of course also warms the heart of a logistics company where new challenges need to be handled and increased volumes have to find their way to the different markets. We have therefore carefully planned to be able to handle all of these changes and are well on our way with the preparations for our new distribution system that we have named D2016.

Rolf Johannesson,

Executive Vice President SCA Logistics

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Engaging speakers at Baltic Shipping Days 27 and 28 October

On 27 and 28 October, SCA Logistics, Transecure and Provins Insurance will once again be hosting a two-day conference with networking opportunities for the transport and logistics industry. This year’s edition of Baltic Shipping Days will offer seminars that reflect, discuss and analyse changes in the market, principally in the Baltic region. Meet a former prime ministerInteresting seminars have been booked that highlight the present situation in a market that is undergoing significant changes. Come and listen to former Swedish Prime Minister Fredrik Reinfeldt share his views on world politics and economy and the impact on the Baltic Region. Also meet Ingela Ekebro, Project Manager of the Helios project at SCA Östrand, one of the largest industrial investments ever in

Don’t miss the eleventh edition of Baltic Shipping Days. Fredrik Reinfeldt, former Prime Minister of Sweden, will be there to speak about world politics and economy and the impact on the Baltic Region. Ingela Ekebro, Project Manager of one of the largest industrial investments ever in Sweden, will tell you about the journey of becoming one the world’s largest pulp mills.

Sweden. She will tell you more about the journey to become one of the world’s largest pulp mills.

Predicts the future of the industryBaltic Shipping Days also looks ahead to predict the future of the industry. We welcome back acknowledged analyst Niklas Bengtsson of Maritime Insight to talk about transportation from a Baltic Sea perspective.

Take the opportunity to forge new business contacts between programme items and at the dinner in the evening. Hotell Södra Berget in Sundsvall will once again be the conference venue.

We look forward to seeing you.

Register at www.balticshippingdays.se.

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The ravages of winter usually mean that many buoys and spar buoys in the fairway system are damaged, disappear or are moved from their normal position. Every single buoy and spar buoy is therefore checked before the summer every year. The ones that have disappeared are naturally

replaced with new ones and all floating marine safety decides are put back in position. The Swedish Maritime Administration reports that the devices around the coast have generally survived the winter well this year.

Safety devices checked6,000 floating marine safety devices were checked by the Swedish Maritime Administration during May and June. The annual inspection is a sure sign of spring.

Wasaline set records in all segments in 2015. A total of 168,500 passengers travelled on Wasa Express between Umeå and Vaasa last year. Freight transportation also increased to about 14,100 units – despite the current recession. Wasa Express also had 38 more departures than in 2014.

Peter Ståhlberg, Wasaline’s Managing Director, is happy with these results. Volumes have increased every year since the ferry operations were taken over in 2013.“It’s very gratifying and proof of increased confidence in Wasaline. It shows that we have our customers’ confidence,” says Peter Ståhlberg and goes on:“The fact that we have broken all passenger and freight records since tax-free sales were abolished is something we can be proud about and shows how important the ferry route across the Kvarken Strait is for both industry and the entire Kvarken region.”

Record year for Wasaline

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Construction work in Kiel has been intense during the year and Jörn Grage, Terminal Manager at SCA Logistics Lübeck, can now see that everything has gone according to plan. The relocation will mean more

intermodal opportunities for both paper products and other kinds of freight.

The new terminal is also an important link in SCA Logistics’ new services set-up thanks to its strategic location and the

availability of two dock cranes, one able to handle 40 tonnes and the other 120 tonnes.

“We have created a flexible, modern terminal, tailor-made for the actual and future demands of our clients.

Prepared for future possibilitiesKiel is ready to take over from Lübeck as SCA Logistics’ new distributing hub for central Europe. The new cooperation with Seehafen Kiel opens new possibilities with increased flexibility.

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On 26 May, a topping-out party was held in Kiel after intensive construction work that has among other things

doubled the terminal’s storage space. The festivities were hosted by Port of Kiel, represented here by

Port of Kiel Managing Director Dr Dirk Claus

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The terminal is situated in an extremely good place with a comfortable geographic position within SCA Logistics’ marine network,” says Jörn Grage.

Training to ensure the highest serviceThe relocation from Lübeck will take place

in stages until 1 October, when Kiel will fully take over as SCA Logistics’ terminal in Germany. The first call was made as long ago as October 2015 and since then SCA Logistics’ RoRo vessels have been making calls at both the present terminal in Lübeck and the future one in Kiel.

In parallel with the extensive construction work, that has among other things doubled the storage capacity to roughly 40,000 sq m, other substantial preparations have been going on behind the scenes. Training has been prioritised to be able to offer the same high-quality service as in Lübeck and at SCA Logistics’ other terminals from day one.

“For example, six blue collar workers have been educated in Umeå, Sundsvall and Iggesund over two-week periods. They are really enthusiastic and eager to learn how to handle our customers’ goods in the best way possible,” says Jörn Grage.

A training centre for blue collar workers has also opened in Kiel and the staff of the new agency department have also visited other established terminals for training purposes.

Increased attractivenessJörn Grage emphasises that both the construction work and other preparations have gone so smoothly thanks to the efforts of everyone involved, both those who have continued to handle the operations in Lübeck during the construction period and new employees and partners in Kiel.

“I would like to thank my whole team for the excellent job they are doing in

their daily work. I would also like to thank the whole Port of Kiel team for their high motivation and enthusiasm to build up our new common future.

The great confidence that customers have shown in the construction project and SCA Logistics’ decision to build a new future

further strengthens our faith in the future.I am convinced that this will be a success.

The new cooperation with Seehafen Kiel allows us to increase our attractiveness and continue to offer competitive solutions for our clients,” says Jörn Grage.

“The new cooperation with Seehafen Kiel allows us to increase our attractiveness and continue to offer

competitive solutions for our clients.”

The construction work is almost at an end. In October, Kiel will fully take over from SCA Logistics’ present terminal in Lübeck and preparations are extensive. “The team is extremely motivated and willing to learn about the clients and their products,” says Jörn Grage, Terminal Manager at SCA Logistics Lübeck.

The New Kiel terminal

A Renovation of 18,000 sq m of existing storage space.B New extension with 18,000 sq m of storage space.C New extension with 3,000 sq m of storage for pallets, cargo and pulp.D New extension with a 7,000 sq m shed for intermediate storage of cassettes.

E Installation of two cranes with 140 and 40 tonnes’ capacity.F 10,000 sq m for future expansion. Approximately 5,000 sq m area for handling of recycled fibre. G Container Station. H Intermodal Terminal.

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The new routes have been designed after meticulous needs planning. RoRo volumes to Kiel are increasing substantially as a result of the extended collaboration with Iggesund Paperboard and the new set-up means among other things that cargo that was previously transported by RoRo vessel to London and Rotterdam is being transferred to containers. This will at the same time strengthen SCA Logistics’ new container services’ competitiveness.

“We have tried to satisfy as many wishes as possible to create time-efficient solutions that suit our customers’ needs,” says Magnus Wikström, Head of Marine Transportation at SCA Logistics.

Meticulous tests at the terminalsThe new terminals in Kiel, London and Malmö are important pieces of the puzzle. All the ports will have been carefully tested by the time the switch is made on 1 July.

“We started in good time and have been operating a frequent service to Kiel for about six months now. We’ve been operating to the new terminal in Malmö for three months and in London we’ve already reached 100% of the volumes to the new terminal in Sheerness,” Magnus Wikström goes on.

Better locations, more effective transportationKiel is taking over from Lübeck as SCA Logistics’ strategic terminal in Germany and both terminals will be used for a while.

“The Kiel location is very good for us and our personnel have shown a fantastically positive attitude since we began the cooperation. We have kept all our deadlines and are looking forward to increasing our tempo,” says Magnus Wikström.

SCA Logistics’ new location in London also has great advantages.

“We won’t be as affected as before by the tide and from 1 July we won’t need to use the lock. This will have an enormously positive impact on how the vessels can operate,” says Magnus Wikström.

Competitive pricesThe purpose of the new routes is to create more efficient systems that meet today’s logistics needs, as well as tomorrow’s.

“Thanks to the new set-up we can maintain competitive freight prices. We also open up opportunities for a greater volume of intermodal transportation. We see opportunities for even greater and highly inter-esting set-ups, where containers are delivered direct to the end-customer without transshipment,” Magnus Wikström rounds off.

SCA Logistics’ new RoRo schedule comes into effect on 1 July. Calls at the new terminals in Kiel, London and Malmö are already part of the smooth-running routine. “We started in good time and we’re all set for a hitch-free transition,” says Magnus Wikström, Head of Marine Transportation at SCA Logistics.

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The Terex Gottwald HMK 6507 crane was started up in April and in May was ready to be put into operation for the first time. Ten operators have been trained during the spring and their very first assignment was to unload cargo from c/v SCA Tunadal.

“We went live from the start and it worked fine, as we expected. We have a clear ramp-up plan and we are sure that we’ll reach high capacity very quickly,” Urban Häggkvist, Terminal Manager at SCA Logistics in Sundsvall tells us.

Higher capacity, range and mobilityThe new crane is stronger and faster than the present dock crane that was installed in 2000. Capacity will increase from the old crane’s 45 tonnes to 125 with the new one. The crane also has a greater range and

New container crane up and runningNow it’s been assembled and run in. The new mobile dock crane at SCA Logistics in Sundsvall stands ready to handle containers safely and efficiently as volumes increase.

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can be moved to where it is best needed inside the terminal area. At 26 metres, the operator is sitting six metres higher than before and has an even better view.

“The new crane also has a new,

direct-response, control system. It also has more functionality to increase productivity and quality. It’s similar to the difference between a car from 2000 and one from 2016. Functions that were not even available as options 16 years ago may very well be standard today,” Urban Häggkvist goes on.

Safe assembly and secured maintenanceThe crane was assembled by an experienced team from the manufacturer and ten people in all have been given special training in

carrying out maintenance of mechanical parts and the electrics.

“The investment will increase our lifting capacity and speed, which means shorter dock times for all vessels. We have also secured port capacity for the larger vessels that will be calling at Sundsvall in the future,” Urban Häggkvist rounds off.

The stronger, faster dock crane has greater range and enables more efficient handling with the increase in containerisation that SCA Logistics in Sundsvall is expecting.

The crane operator has a full view of loading and discharging from a height of 26 metres. Cameras

connected to monitors in the cab are important aids for the operators in their extremely precise work.

“The investment will increase our lifting capacity and speed, which means shorter dock times for all vessels.”

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SCA Logistics in Sundsvall is expecting an 80–90% increase in containerisation. At the same time, SCA Östrand pulp mill is investing billions in an expansion that will enable the mill to double its production of pulp in 2018, which will put even greater demands on the terminal’s capacity.

Successful results with careful planningWork to complete a new container stuffing station, new container areas and the new mobile dock crane see previous article has been intense. All container operations have relocated to Korstabäcks quay, which has

greater bearing capacity and can receive vessels with deeper draught. The objective has throughout the entire period been to have everything finished by 1 July, the starting date for SCA Logistics’ new distribution system.

“We’ve had a great many parallel

Ready for increasing flowsAfter a year of intense building activity, SCA Logistics’ terminal in Sundsvall is now equipped for increased container traffic. With a new stuffing station, new container areas and optimised schedules for both freight flows and port personnel, the terminal welcomes increasing container traffic.

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A new container stuffing station assures SCA Logistics’ quality in Sundsvall. The conversion of the warehouse enables the fork trucks to move cargo from its storage location in the warehouse straight into the container that has been placed with its door opening facing the warehouse’s loading bay.

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projects that have been dependent on each other at the same time as it has been vitally important for us that our customers not be affected by the conversion work going on at the terminal. It’s 20 years since we last made such a great change and we can now see that with the help of careful planning everything has gone well and without disrupting our regular operations,” says Urban Häggkvist, Terminal Manager at SCA Logistics Sundsvall.

Secured container stuffing with a new stationOne important measure was to convert a warehouse for container stuffing. The warehouse’s two long sides have been equipped with a total of eight dock boards where containers can be placed with the door opening facing the warehouse

FACTS IN BRIEF

SCA LOGISTICS IN SUNDSVALL… ...is prepared for increased container traffic. The major investments at the terminal will ensure that capacity is available while waiting for Sundsvall Logistics Park to become a reality.

“Our substantially increased capacity is a boost for the whole terminal.”

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“The new solution assures quality when loading containers because the cargo is driven by fork truck completely protected from its storage location inside the warehouse straight inside the container,” Urban Häggkvist goes on.

New design to cope with increased flowsIn the final stage of the work, new areas totalling some 10,000 square metres have been prepared for storing containers. The areas, that spread out around the new stuffing stations and the new crane, have been quality assured by means of inspection and where necessary adjusting the surface to a maximum inclination of 1%.

Detailed flow simulations earlier in the process proved that the terminal’s new design can handle the estimated increase in container traffic. A variety

of flow scenarios were tested in a computer model of the terminal and the present solution is designed to cope with the increased volumes.

“We have also developed alternative solutions should volumes increase more than we anticipate,” Urban Häggkvist goes on.

Adjusted work schedules for efficient handlingThe port personnel’s work schedules have also been adjusted to match the vessels’ arrival times. Manpower is now on hand where and when it is best needed for

cargo to be handled efficiently. In the final stages, the storage strategies in the warehouse have also been changed to

ensure an optimal start-up.“I would like to thank all the suppliers

concerned and all the personnel who have taken part in the project. Almost every single one of our employees has been affected by the changes that we have implemented and they have been receptive to new directives, sometimes every day,” says Urban Häggkvist and goes on:

“Our substantially increased capacity is a boost for the whole terminal and an important part of SCA Logistics’ major effort to build a new future to meet our customers’ coming needs in the best possible way.”

New names at SCA LogisticsSCA Logistics is changing the names of its RoRo vessels to further strengthen their SCA profile. M/v Obbola was first, changing its name in connection with a visit to the shipyard in Landskrona. The vessel’s name is now SCA Obbola. During their visits to the yard in May and June, the other two RoRo vessels have also changed their names to SCA Östrand and SCA Ortviken.

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Tunadal sawmill is one of SCA Timber’s five sawmills and is located in Sundsvall. There has been a sawmill here since 1849 and the investment of approximately SEK 500 million in this new saw line will ensure that SCA Timber is well equipped to face the future.

Three saw lines have been replaced by one and the technology is totally new, at the same time as capacity will increase from 500,000 to 540,000 cubic metres of sawn spruce timber a year. The operators will have full control of the saw line from their new control room. They can monitor and adjust the entire process from the log intake to the outfeed in green sorting.

Faster and saferThe new line has been supplied by sawmill technology giant Linck and it is the fastest ever line that is now being put into operation at Tunadal. It is able to process 200 metres of timber a minute.

“I would in particular like to emphasise two areas: the line gives our operation and maintenance staff a better, safer work environment and our customers will see greater precision in our products and better delivery reliability,” says sawmill manager Katarina Levin.

The external environment has also been improved. The new intake is soundproofed and enclosed, which is unusual in Sweden.

The log decks also have noise barriers, which will improve the environment in residential areas in the vicinity.

The sawing technology of the futureThe project has invested a great deal of time in staff training, both before, during and after installation of the new saw line.

“Both participants and trainers have shown great commitment and this will guarantee success,” says Ulf Danielsson, the project’s training

coordinator and IT Manager.Jimmy Hörnström, Project

Manager for machinery, goes on:“It feels incredibly good to finally be

able to process the first log after 2.5 years’ work. We’ve advanced sawing technology a few more steps with this project and now we’re about to tie everything together.”

The project will now continue in order to complete the installation. A new shredder to take care of sawn-off pieces from the green sorting will come into operation at the beginning of June. In June and July it will be the dryers’ turn.

“The air exchange system in the TC dryer plant is being redesigned, which will increase quality and capacity. Then we will optimise the drying programmes and the utilisation of the existing dryers,” says Pär-Micael Samuelsson.

Crucial to competitivenessDuring the summer production on the new saw line will be increased progressively as the old lines are phased out one by one. The planned handover date is August 15.

Test operation will begin on August 1, during which the systems will be further fine-tuned.

“What we’re aiming for is to then have production at the same level as our present saw lines. During the autumn, we’re going to continue to tune the systems to take us up to the saw line’s target level. This investment is a major step for SCA Timber and crucial to our competitiveness. Now we can see the finishing line and are continuing with our final sprint to bring the project to a successful close,” Katarina Levin says.

New saw line for a sharper competitive edgeThe new saw line at Tunadal saw mill started up on 18 May after 2.5 years of preparation. The first log was sawn on schedule and without any problems. The state-of-the-art technology will strengthen SCA’s competitiveness. “We have reached an important milestone for the world’s best sawmill,” says Project Manager Pär-Micael Samuelsson.

“Our customers will see greater precision in our products and better delivery reliability.”

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The investment in a new saw line at Tunadal sawmill will increase production capacity, precision and delivery reliability at the same time as it will also give the mill’s employees a better work environment.

FACTS IN BRIEF

TUNADAL SAWMILLTunadal sawmill produces spruce timber and is an important supplier of timber to glulam producers and other manufacturers of construction elements both in Sweden and internationally. Great Britain, France, China and Japan are also large markets. Scandinavia, England and France are also important in the other large, growing market: the timber and construction trade. 140 employees and contractors work at the mill.

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The Gateway to the World celebrates 50 years

Half a century of container handling. Port of Rotterdam is today Europe’s biggest port and an important hub in SCA Logistics’ container services. Greater deep-water capacity and new infrastructure are ready to welcome the next generation of ultra-large vessels with enough space for ten thousand containers.

An increase in efficiency that will benefit companies and consumers across the continent.

Text: Linn Madsen. Photo: Freek van Arkel.

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On 1 May 1966 MS Fairland arrived in Rotterdam with 226 containers on board. Port of Rotterdam quickly became the first, and biggest, European container port and central port for trade with the rest of the world. SCA set up operations at the terminal the following year.

“Port of Rotterdam is extremely important for SCA Logistics because of the connections available. Container

systems in Europe are becoming so large-scale and comprehensive that containerisation is becoming increasingly competitive for transport within Europe,” says Roelf Buist, Managing

Director of SCA Logistics terminal in Rotterdam, and continues:

“Our terminal in Rotterdam is perfectly located for this, with direct connections to Rotterdam Short Sea Terminal and Rail Service Center and several deep-sea terminals accommodating all major shipping lines nearby.

Increased containerised volumesThe new port development is attracting investment from companies around the world who want to take advantage of Europe’s common market. New container terminals with enormous cranes have been in operation for some time and allow

vessels to be discharged round the clock. Vessels are increasing in size all the time and can carry up to 20,000 containers, which contributes to faster freight handling.

“SCA Logistics’ terminal is built to

handle all types of cargo, from RoRo vessels, containers and open hatch to specialised vessels. Roelf Buist tells us more about how containerisation is growing and also having an impact on SCA’s core operations.

“It gives us more opportunities to move cargo from road to rail or water. SCA Logistics will therefore increase containerised volumes and reduce RoRo traffic correspondingly between Sundsvall, Umeå, London and Rotterdam. To allow for this development, SCA Logistics’ existing container route between Sundsvall, Umeå, Rotterdam and St. Petersburg will be expanded.”

“Our terminal in Rotterdam is perfectly located for large-scale container systems.”

DID YOU KNOW

SHIPPING CONTAINERS TURNS 60 THIS YEAR! In April 1956 the first batch of 58 containers were loaded on board a converted World War II oil tanker. Today containers are recognised as one of the greatest inventions of the modern age, one that has completely changed the way business is done and an architect of globalisation. Standardised containers have improved and contributed to a quicker handling of cargo, with a huge impact on the world economy.

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FACTS IN BRIEF

- 456 million tonnes of cargo in throughput a year- 30,000 seagoing vessel visits a year- 110,000 inland vessel visits a year- 12,500 ha port area- 40 km total length- 90,000 workers

TIMELINE – 50 YEARS OF CONTAINER HANDLING1966

MS FAIRLAND ARRIVES AT PORThe vessel’s arrival at the port with 226 containers signals the start of shipping containers to Rotterdam.

1974

RECORD: 500,000 CONTAINERS IN ONE YEARFor the first time ever, ECT handles more than 500,000 containers in a single year. The final container was owned by the Delta-Sealand shipping line.

1985

OPENING OF THE ECT DELTA TERMINALRotterdam officially opens the Delta Terminal. It is the start of a new era for ECT.

2011

RECORD: 100,000 CONTAINERS IN ONE WEEKThat is equivalent to a line of containers stretching from Rotterdam all the way to Berlin.

2014

ARRIVAL OF GIANT CRANESFive new quay cranes arrive at the ECT Delta Terminal and are part of a larger investment programme.

2016

50TH ANNIVERSARYEuropean Container Terminals, ECT, celebrates 50 years. Today containers have improved and contributed to a quicker handling of cargo.

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Higher quality is the biggest gainContainerisation has many advantages. One important aspect is that there is a uniform load unit that functions all over the world. This standardisation gives competitive advantages since the container copes successfully with many different systems on one and the same trip. No transshipments, no unnecessary wear to the goods.

“We see containers taking market shares

from other transport modes. More and more consignees can unload and handle containers, which in turn opens new doors for our customers. It’s not a special product that requires special transportation. Quality is another important aspect in transportation and in that respect containers are a safe and reliable alternative compared to other modes of transport,” Mikael Högström, Sales Manager at SCA Logistics, rounds off.

The International Maritime Organisation (IMO), a United Nations agency, has issued a new set of rules that mean stricter regulation of load information and make it compulsory to state the verified gross mass (VGM) of stuffed containers that will be transported by sea. The change is being made to increase safety at sea and will apply worldwide. The aim of the rules is to achieve greater credibility as regards the vessels’ loading plans. Wrong weight details can lead to incorrect stability calculations and in the worst case lead to container vessel accidents.

Important safety serviceBut from 1 July, a container’s weight is thus to be verified by weighing before it is loaded on board. At the time of going to press, the Swedish Transport Agency was still working on the necessary regulations to make the new requirements applicable in Sweden. The ambition was to have everything finished by 1 July and the proposals were circulated for comment in May.

The required rule changes are set out in SOLAS (International Convention for the Safety of Life at Sea). SCA Logistics has

“It’s ultimately a matter of safety on board and not

risking overweight that can endanger the personnel and

the freight.”

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Ready for compulsory container weighingFrom 1 July 2016 it will be compulsory to weigh sea containers in international transportation. SCA Logistics is prepared for the change.

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WEIGHING METHODS

TWO WEIGHING METHODS CAN BE USED Method 1: The whole container is weighed as a unit.Method 2: The individual cargo items and the empty container are weighed and all the weights added together. In method 2, the carrier must use a process in a quality management system or introduce a separate certified weighing procedure.

FACTS

COMPULSORY CONTAINER WEIGHING In brief, the requirements concerning container weighing mean that the master can refuse to load a container if the verified gross mass (VGM) is not stated in the transportation documents or load information.

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monitored developments to be able to offer the best solutions when the regulations come into force, even though it has taken longer than expected to prepare them.

“Although responsibility lies with the exporters, weighing is a service that we intend to provide for our customers. It’s ultimately a matter of safety on board and not risking overweight that can endanger the personnel and the freight. And we naturally have the greatest understanding for that argument,” says Ellenor Nordborg, Chartering Manager Container at SCA Logistics.

Prepared for new demandsThe Swedish regulations will contain transitional rules that will apply until July 2017, but SCA Logistics is aiming to be ready by 1 July this year.

“We have collected all the information we need and looked at various ways to meet the demands in time. Not one single container will need to be left behind at any of our terminals because we couldn’t provide the correct details. That is our explicit objective,” Ellenor Nordborg goes on.

In a group-wide project SCA Logistics has decided to introduce the same weighing procedures at the terminals concerned in Umeå, Sundsvall and Rotterdam.

“We’ll be using the built-in weighing equipment that our container trucks already have and gradually introduce IT solutions to transfer weight details automatically within the system,” explains Urban Häggkvist, Terminal Manager at SCA Logistics in Sundsvall.

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When the comprehensive expansion and modernisation of the mill is completed, it will be able to produce a million tonnes of pulp, 475,000 tonnes more than today. A total of SEK 7.8 billion is being invested, one of the largest ever industrial investments in Sweden and the largest ever in Norrland. All in all, the total annual volume of pulp produced will amount to 900.000 tonnes and a further almost 100,000 tonnes of CTMP pulp.

It will be the biggest bleached softwood kraft pulp production line in the world. It will be a world-class mill as regards both product quality, the environment and competitiveness.

And we’ll be switching bleaching technologies at the same time. We’ll have a new fibre line, a new wood room and a new digestion plant, that will allow us to manufacture both chlorine-free TCF pulp and ECF pulp using raw materials from

sustainable forestry. We weren’t able to do that before,” says Stefan Sjöström.

Market strategies in focusSuch a major project also demands substantial effort on the marketing side.

“Since we as yet do not have any samples to show, we can’t begin our sales work. On the other hand, we’ve begun working intensively on marketing and logistics planning, where we are trying to establish what types of segment we want to focus on and make our customer offering as attractive as possible,” Stefan Sjöström goes on.

And customers are already showing great interest.

“We have a good starting-point and credibility in our raw material inspection and our meticulous environmental work, not least as we will be able to offer pulp from a mill that will be among the very best in the world as regards the

environment, energy and quality. These are also issues that have grown in importance for our customers. Regarding quality, we also have access to absolutely excellent raw materials in the form of Norrland’s conifer forests,” Stefan Sjöström tells us.

New capacity on its way to the marketThe softwood kraft pulp market is fairly well-balanced between demand and practical production capacity. Three major projects are currently going on. Alongside SCA Östrand, Södra Cell Värö is to begin replacing its production line and adding some 275 tonnes and next year Metsä Fibre will be starting up its completely rebuilt mill in Äänekoski in Finland with approximately 700,000 tonnes more softwood kraft pulp capacity.

“These capacity increases over a three-year period exceed market growth so we’ll have to be very skilful

Intensive market planning for SCA Östrand’s new volumes

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The expansion of the SCA Östrand pulp mill, also known as the Helios project, is in full swing. It is due for completion in 2018 and the mill will reach its full production volume of approx. 900,000 tonnes of softwood kraft pulp a year during the course of 2019. Market preparations have already begun and SCA believes the market will be strong in the years to come. “In the long term we see a global trend of a growth in demand for long-fibre softwood kraft pulp of 1-2% a year,” says Stefan Sjöström, Vice President Sales and Marketing at SCA Grahic.

and focused in the market place to be successful,” says Stefan Sjöström.

Long-term market growthThere is much to indicate that the global pulp market is now once again beginning to stabilise after a period of recovery, with prospects for good market and price development for the rest of 2016, at least as regards long-fibre softwood kraft pulp, that is primarily used in more hard-wearing and durable paper products.

“In the long term, we see a global growth trend in demand for softwood kraft pulp of 1-2%. Much of this global growth is in hygiene and packaging and mainly in China, at the same time as the newsprint market is shrinking largely everywhere. Digitalisation also brings with it increasing trade, which in turn increases the need for packaging. There is moreover a trend in packaging towards more white board, which is increasing the demand for bleached pulp. Another important trend is that with falling newsprint consumption around the world there is also less recycled fibre available. Some of this is at present being replaced with softwood kraft pulp,” says Stefan Sjöström and goes on:

“With the estimated growth rate and the deficits we have seen as regards long-fibre pulp, we believe that the market will be able to absorb the new capacity now being installed sensibly and rationally. We’ll probably also see old high-cost capacity being phased out or converted for other products, which we’ve also seen before. But total chaos must not break out in the bleached hardwood kraft pulp (BHKP) market. I don’t think that’s likely to happen, though. Despite the enormous expansion in capacity in recent years, the additional volumes have been absorbed by the market fairly quickly. If this trend continues, the actors in the market place will also be able to handle the new volumes that are on the way.” Control of the raw materials supplyAnother important strategic question was whether Swedish raw materials will be sufficient.

“I’m not the slightest bit worried about the supply of raw materials. The forests in Norrland will continue to grow faster than

the extraction rate is expected be even after SCA Östrand’s expansion. We’ll need 2.5 million cubic metres more timber, which is a colossal amount. The timber is in Norrland and in SCA’s own forests. SCA has fantastically good prerequisites for this and the group would not have made this gigantic investment if we didn’t have the good control of raw materials that we do. SCA is Europe’s biggest private forest owner. This is one of SCA’s strengths and also a reason why it’s not so very easy to build new capacity in other parts of the world,” Stefan Sjöström goes on.

More external salesSCA Östrand’s pulp mill produces 430,000 tonnes of bleached softwood kraft pulp today. About half is used in SCA’s own production of hygiene and publication paper. The rest is sold to external customers.

“The group’s pulp needs will not change with SCA Östrand’s expansion. SCA is growing very quickly in tissue, first and foremost in China. SCA Östrand can supply part or all of the increased demand but it is not a foregone conclusion that this will

be the case. What will determine internal deliveries is what is best for both SCA Östrand and SCA’s hygiene business at the time in question. I believe that a large part of the pulp deliveries will continue to be external”, says Stefan Sjöström.

Higher frequencyThe logistics are another important component of the Helios project. Dedicated steering committees have been set up for both marketing and logistics. SCA Logistics’ President Magnus Svensson is a member of the latter.

“We use logistics as an aid to be better in the market but we also use new knowledge about the market to improve our logistics. The market changes from month to month. Logistically speaking, we strive for cost-effectiveness and higher frequency. With the increased volume we’ll be delivering more often to a number of key ports to

keep costs down and increase the level of service we offer our customers. We also have to achieve better coordination with sawn timber products and match frequency, ports and volumes to each other. Most deliveries will probably continue to be break-bulk. It’s more difficult when it comes to container traffic, mainly for transoceanic transportation, because not all ports have efficient equipment for large numbers of containers,” says Stefan Sjöström.

From being a net importer of softwood kraft pulp, Europe has become a net exporter, where the surplus has to be exported to other continents. It’s a new challenge for many of Europe’s mills.

Most of the volumes will be transported inside Europe, but considerable quantities will also be shipped on ocean-going vessels,” Stefan Sjöström goes on.

One of SCA’s strengthsSCA Forest Products has a very good reputation among its customers for its high delivery reliability and solid dependability.

“It’s one of SCA’s great strengths and

due in large part to SCA Logistics. It’s also something we need to continue to build on and exploit as a competitive edge. In this respect it’s important that policy issues don’t cause problems but that we ourselves be allowed to continue to be masters of our own logistics. That in the future it will still be we who decide the trucks’ and vessels’ schedules. This in particular is a crucial competition factor for us,” says Stefan Sjöström.

Stefan Sjöström, Vice President Sales and Marketing at SCA Grahic.

“In the long term, we see a global growth trend in demand for softwood kraft pulp.”

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Future Motorways of the SeaMotorways of the Sea is a concept in the European Union’s transport policy, stressing the importance of marine transport. SCA Logistics was invited to be one of the presenters at a recent conference.

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“Participating in influential forums represents a considerable part our work to develop logistics solutions and impact tomorrow’s infrastructure”, says Margaretha Gustafsson, Terminal Manager at SCA Logistics in Umeå.

The conference, on the theme of “Northern transport routes and the position of remote areas” brought together about 150 experts in transportation, regional and national decision-makers, representatives of private companies, and the leaders of the TEN-T/Motorways of the Sea programme, Brian Simpson and José Anselmo.

Important projectsOne important project for the region is the Midway Alignment of the Bothnian Corridor between Sweden and Finland. The link connects to three major roads classified by the UNECE as European roads of strategic importance – the E12, the E4 and the E8 – and to the newly-built Bothnian Link main railway line.

Another important project is the Motorways of the Sea route connecting Sundsvall and Rotterdam for Europe’s supply of cellulose and timber products.

Margaretha Gustafsson, Manager at SCA Logistics Umeå, and Per Anders Westin, Finance Manager SCA Logistics,

made a joint presentation of SCA Logistics’ view of the importance of these projects.

“We were given the opportunity to present our operations and emphasised the importance of having a well-functioning infrastructure both at the ports and on the land side, where rail and road transportation are linked in an efficient network of terminals,” says Margaretha Gustafsson, who has been involved in the Midway Alignment project since it began.

Positive responseThe response was positive, including from the EU representatives.

“Many people were interested in our integrated logistics system and learned that we serve not only SCA’s operations but all trade and industry in the region,” Margaretha Gustafsson goes on.

Up to 30% of the terminal’s customers are external companies located from Umeå in the south all the way up to the mines in Sweden’s far north.

FACTS IN BRIEF

MOTORWAYS OF THE SEA The main aim of Motorways of the Sea is to improve port communications with peripheral regions of the European continent and thus strengthen the networks between the EU candidate countries and those countries already part of the European Union.

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“Many people were impressed by how important the transportation link that SCA Logistics in Umeå is with both northbound and southbound flows to and from mainland Europe on our RoRo vessels and an integrated system with cassettes that go to Vaasa and our customers in Finland,” says Margaretha Gustafsson.

Removing bottlenecksMotorways of the Sea taps into the huge potential of maritime transport as the backbone of international trade. In Europe, this capacity has not yet been fully exploited. Based on successful shipping routes, Motorways of the Sea us designed to remove bottlenecks in the EU’s transport system. This will be achieved by

establishing more efficient and frequent, high-quality maritime-based logistics services between member states.

“Our challenge in Umeå is that we are so far from the market. To be able to strengthen our products’ competitiveness we constantly review possibilities to design efficient transport solutions and

develop our intermodal terminals,” says Margaretha Gustafsson and continues:

“We are proud to have participated in the conference. It’s extremely important for us to present our operations and meet the decision-makers in person. Now we have to let the process run its course.”

“Many people were interested in our integrated logistics system.”

SCA Logistics’ Margaretha Gustafsson were invited to speak at the MoS conference, that began in Umeå and then continued on the ferry to Vaasa, where it ended. The furthermost participants came all the way from the Azores, Madeira and Hawaii.

Part of IL Recycling’s current business involves sourcing and supply of recycled fibre to SCA. As soon as the deal with Stena Metall AB is completed, SCA intends to create its own sourcing organization for recycled fibre.

Experienced management in new organisationThe new sourcing function will be organized within SCA Sourcing and Logistics and the intention is to buy recycled fibre from both IL/Stena and other suppliers in the market.

Patrik Lilja, at present Operational Manager Sweden at IL, will join SCA as new Category Manager Recycled Fibre.

Deal to be approvedThe deal is subject to approval from the competition authorities in Sweden and Poland and will be executed in connection with approval being granted.

SCA and three other current owners of IL Recycling (33 percent owned by SCA) have decided to sell the company to Stena Metall AB. On completion of the deal, SCA intends to create its own sourcing organization for recycled fibre.

New sourcing organisation for recycled fibre

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FCA EXW FOB CFR/CIF DDU/DDP BUYERMANUFACTURER

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INCOTERMS®

Incoterms® are the ICC’s (International Chamber of Commerce) rules for inter- preting terms used in international and national trade.

The Incoterms® rules consist of terms used in international trade that define how freight transportation costs and responsibilities are to be distributed between buyers and sellers. It is not always easy to understand what a combination of letters means, so let us continue to look at each term in Incoterms® 2010 in more detail. In the last issue we had a look at Ex Works (EXW) and Free Carrier (FCA). Now we dig deeper into the two remaining terms in group F: Free alongside ship (FAS) and Free on board (FOB).

Incoterms® – a guide to international trade

INCOTERMS® PART THREE

These rules are restricted to goods transported by sea or inland waterway. For both terms the seller has an extended obligation to hand over the goods for carriage to a carrier nominated by the buyer. Group F is characterised by the seller handing over the goods to a nominated carrier free of risk and expense to the buyer.

Definition: Free alongside ship, FAS, means that the seller makes delivery when goods are placed alongside the vessel nominated by the buyer in the named port of shipment or on a barge alongside the vessel. The seller’s obligations ceases at this point and the risk of loss or damage to the goods is the responsibility of the buyer from that moment onward. But the seller needs to make out an invoice and inform the buyer that the goods

have been delivered and provide proof of delivery. The seller also has to clear the goods for export. The buyer arranges and pays for the main international transport.

FAS is not suitable for containerized goods as the goods are handed over to the carrier at a terminal and not alongside a ship. Free carrier FCA is more suitable for containers.

Insurance: It is the buyer’s responsibility to arrange insurance.

Drawbacks: As usual, unexpected costs charged the port or terminal operator can cause unnecessary friction between buyer and seller. If the goods are delivered when the vessel is docked in the port there should not be any issues, but often the goods are delivered before the vessel calls at the port. This may result in the goods being at the ”wrong”

FREE ALONGSIDE SHIP, FAS

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“For both terms the seller has an extended obligation to hand over the goods for

carriage to a carrier nominated by the buyer.”

FCA EXW FOB CFR/CIF DDU/DDP BUYERMANUFACTURER

CARRIER“Carrier” means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or a combination of such modes.

Let Henrik Fälldin, Risk Manager/Sales Manager at SCA Logistics, guide you through the Incoterms® rules.

loading point at the port and the terminal operator has additional costs to move the goods to the correct loading point.

If no specific loading point has been mentioned by the buyer, the seller can choose a point. At the same time the seller also needs to deliver in the manner that is customary at the port. However, this may still be a matter for discussion between buyer and seller. It can therefore be wise for the seller and buyer to specify the loading point as clearly as possible or be well informed of the port’s customs.

Definition: Free on board, FOB, is similar to FAS but the point of delivery is when the goods are placed onboard the vessel nominated by the buyer in the named port of shipment. The seller needs to notify the buyer that delivery has taken place and provide proof thereof, for example a mate’s receipt. The seller has to clear the goods for export and the buyer arranges and pays for the international transport and insurance.

FOB is also not suitable for container-ized goods as they are handed over to the carrier before they are onboard the vessel.

As mentioned in the first article, a major change was made in FOB in Incoterms® 2010. The point of delivery is now when the goods are placed onboard by the seller and not at an imaginary line at the ship’s rail, as the previous versions defined the point of delivery. The change gives a more distinct point for the transfer of risk and also clarifies the cost charged for handling onboard.

Insurance: It is the buyer’s responsibility to arrange insuranc

Drawbacks: As the seller needs to place the goods onboard the vessel at the loading place to fulfil his delivery and consequential transfer of risk, the potential problems are connected to not being able to place the goods onboard the vessel. This can happen for a lot of reasons, for example the buyer’s failure to notify the seller when and where the vessel will be ready for loading, a late arrival of vessel or the vessel being too small to take all goods onboard. When this happens it can result in a premature passing of the risk and cost to the buyer, but goods must be able to be identified as the contract goods.

Now we have looked at the four terms where the buyer is responsible for the main freight cost: EXW, FCA, FAS and FOB. Next time we start to have a look at the C-terms where the seller arranges for the main transport.

FREE ON BOARD FOB

SUMMARY

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The Saudi shipping line Bahri Shipping has announced a new regular liner service with ConRo vessels between North-West Europe and the Middle East/India region, accepting RoRo cargo, breakbulk cargo and project material.

Second call at RotterdamIn April, a Bahri Shipping vessel called at SCA Logistics’ terminal in Rotterdam for the second time. Last year, the Bahri Jazan docked at the terminal during its very first call at the port. 200 trucks from Southeast Netherlands and Germany were booked on the large RoRo vessel for further transportation to Bahrain and Saudi Arabia. SCA Logistics’ team in Rotterdam did not hesitate to take on the assignment when they

were asked. Delivery of the trucks began two weeks beforehand and they were parked by destination in rows at the terminal.

Advanced parking skillsNow the advanced parking planning was put to use again. This time, the Bahri Jeddah departed from the same terminal carrying some 100 trucks with rolling stock and project cargo.

Rolling stock with a weight up to 250 tonnes can be driven on board via the vessel’s stern ramp. The ramp is 8.2 metres wide and has headroom of 6.8 metres at the door opening. Other cargo can be transferred to the vessel’s deck using its own cranes. For breakbulk, the two cranes have a combined maximum capacity of 240 tonnes.

100 trucks on the roll in RotterdamThe parking skills of SCA Logistics’ team in Rotterdam have been put to a serious test for the second time. About 100 small trucks rolled in at the terminal, pending further RoRo-transportation to the Middle East.

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Advanced parking planning was put to use.

“Rolling stock with a weight up to 250 tonnes can be driven on board”.

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The Bahri Jeddah left SCA Logistics’ terminal in Rotterdam carrying some 100 trucks with

rolling stock and project cargo.

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The Netherlands is one of Sweden’s most important export markets for forest products after England and Germany. Forest Tours, who organised the study and holiday trip with a forest connection, had wanted to organise a trip to the Netherlands for a long time and plans finally came to fruition this spring in cooperation with SCA Skog. The group consisted mainly of forest owners from the north of Sweden. “Many of them wanted to learn more about what exported Swedish timber products are used for.“ ”Seeing how the products are handled at SCA Logistics’ terminal in Rotterdam and being able to actually touch the paper pulp made from Swedish timber on its way to Europe and the rest of the world, that’s really something,” trip organiser Jan Hedberg tells us.

Insight into global logisticsTravellers on Forest Tours’ trips can experience forest environments, the forest industry and how timber is refined in the country in question. In the Netherlands, their visits included forest planted on so-called “polders”, which are areas of land reclaimed from the sea, and a sawmill that processes Swedish timber. “Thanks to our good contacts we were also able to visit SCA Logistics’ terminal in Rotterdam. We were made very welcome by our host Bart Hovens, Manager Logistics & Sales, SCA Logistics B.V., who gave us an insight into the terminal’s function as an important hub for global logistics,” Jan Hedberg goes on.One of the highlights of the visit was a boat trip from one end of the port out into the North Sea and all the way into the centre of Rotterdam, a journey of 45 kilometres. “Our participants ranked the visit to the

Curious about exportsWhat actually happens to Swedish timber when it is exported? Curiosity brought a large group of enterprising forest owners to SCA Logistics’ terminal in Rotterdam. The visit to Europe’s biggest port turned out to be one of the most impressive in the Netherlands. “Seeing how the raw material is refined and put to use in other countries makes us prouder than ever of our own forests,” says trip organiser Jan Hedberg of Forest Tours.

The forestry-interested travellers on Forest Tours’ trip to the Netherlands gave top marks to the study visit to Port of Rotterdam and SCA Logistics’ terminal, where Bart Hovens (in the yellow jacket) gave them some insights into the terminal’s function as an important global logistics hub.

“Experiencing the biggest port in Europe from the seaward side really gave us a new perspective”.

terminal and the boat trip as one of the top three best experiences of the trip,” Jan Hedberg says. Greater insight into the benefits of exportingInterest in trips with a forestry theme is increasing all the time and today Forest Tours arranges up to ten a year. “It’s not only forest owners and forestry officials who come along nowadays. More and more people who have no direct forestry connection think it’s an interesting way to travel because they get inside the country

they visit in ways that are difficult to manage on their own,” Jan Hedberg goes on.At the same time, awareness of the uses to which Swedish timber products are put around the world is also growing.

“We get a much deeper understanding of the riches we have in our Swedish forests when we see how the timber is refined and used in other countries. The feeling of being a small link in the value-creating chain gives new dimensions,” Jan Hedberg rounds off.

Curious about Forest Tours?

Read more at skogsresor.se.

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27–28 OCTOBER 2016

TIDES OF CHANGEBaltic Shipping DaysSundsvall 27–28 October 2016In times of transformation Baltic Shipping Days 2016 will

deliver a high level of latest news and trends in the transport

and logistics sector in the Baltic region and Northern Europe,

connecting the Baltic to the continuously important global

market. As before, we will be presenting a series of interesting

speakers, all gathered under the theme Tides of Change.

Read more and register now: balticshippingdays.se

We look forward to meet you in Sundsvall. Welcome.