Finnish harbours fear sharp decline in work

Transit deliveries of cars to Russia could be cut by half

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By Jyri Raivio
     
      Kemi Shipping, the largest forwarding agent in the harbour of Kemi, announced on Friday that it would hold co-determination talks with personnel, on possible layoffs among its 130 employees.
      One of the reasons for the decline has been the sharp decrease in transport work for the Finnish wood processing industry.
      Hacklin, the largest operator in the Port of Pori, announced temporary layoffs, which would apply to all of its 225 employees.
      “On the basis of the budgeted transport volumes of our customers, we do not see it as possible for our company to have full employment next year”, says CEO Jyrki Paavola.
     
In the Port of Hanko, the largest operator Assistor started co-determination talks with personnel at the end of last year, whose aim, according to CEO Tom Wires, is to cut 100 man work years. All 70 temporary positions will be cut off, or have already been cut, so just 180 of the 350 employees that the company had in Hanko in the early autumn, will be left.
      Steveco, the largest operator in the Port of Kotka, has not yet started the co-determination process - either in Kotka, or any of the other harbours where it operates. More than half of the company’s 1,000 employees are in Kotka, where “the situation is being watched with great concern”, as CEO Kari Savolainen says.
      Kotka and Hanko are the most important harbours for transit for cars imported into Russia.
     
The co-determination processes that have already been launched, and those that are under preparation, show how quickly the situation has deteriorated in Finnish harbours. Two important reasons for this are the reduction in transport for the forest industry, and in the number of cars going to Russia.
      The former is confirmed by the newest foreign trade figures by Finnish Customs, which dates back to October 2008. At that time, overall exports for the forest industry declined by 14 per cent from the previous year. The decline in pulp was a quarter, that of sawn timber a fifth, and paper nearly a tenth.
      Transit deliveries of cars are calculated on a quarterly basis. In the third quarter, their numbers grew to 217,000, representing a 14 per cent increase from the previous year. In mid-October the growth screeched to a halt, especially in Hanko.
      “On the best of days last autumn, about 200 lorries left from here to Russia. From the late autumn, there were fewer than 50 on some days”, says Wires of Assistor.
      Shortly before the end of the year there was another increase; the taxation of new cars in Russia will go up on January 12th, and there is pressure to bring in as many new cars as possible before the change.
     
However, the parking areas in Hanko and Kotka have not been left empty, as cars going to Russia from temporary import harbours replace the ones that had gone.
      There is great uncertainty about the near future. Kyösti Manninen, administrative director of the Port of Kotka, believes that transit deliveries of cars will decline from last year, but that “even some 25 per cent would not be the end of the world”.
      Hanko Mayor Tom Axberg says that the city is prepared for a decline in car transport by about 20 per cent. Wires of Assistor predicts larger figures. “The amount will go down by at least a third, probably by as much as half”, he says.
     
Now the entire vast country of Russia is on holiday, and there is hope that the situation might be cleared up at the end of January. Prospects are not very good for the trade in cars, but Savolainen notes that they are not the only goods that pass through Finland en route to Russia.
      A Russian who cannot find the financing for buying a car, can buy consumer electronics, or other cheaper goods. Much of that also passes through Finnish harbours.
     
Helsingin Sanomat / First published in print 3.1.2009


Previously in HS International Edition:
  Brakes come on for transit traffic of cars through Finland to Russia (23.10.2008)

JYRI RAIVIO / Helsingin Sanomat
jyri.raivio@hs.fi