A record year despite global upheaval
For KWH Logistics, last year was in many ways a year of great upheaval. The outbreak of war in Ukraine meant that most of the transit traffic we had specialised in had to stop. In the following months, we stopped the transit traffic of ore and coal, and since this activity had been a significant part of our business, it meant a big change for us.
But thankfully, the new situation also had a positive side. As most trade with Russia ceased, this meant that many Finnish companies had to look for new sources and routes for their imports. For KWH Logistics, this meant that we were able to find substitute activities for a large part of the transit traffic. Among other things, we were involved in helping customers who started importing timber by sea. We also helped customers develop new logistics chains for importing ore and other raw materials by creating hub operations in deep-water ports with intermediate storage and loading from larger vessels to smaller ones.
All in all, 2022 was by no means a bad year for us, even if sales fell slightly. The profit was better than in the previous year, and even the best in the company’s history. Of course, the explanation for this is not only that we were able to find substitute activities for the transit traffic, but that many of our activities had a tailwind. It is in turbulent times that the importance of having a diversified business becomes apparent, so that not all eggs are in one basket.
Heavy project traffic was one of the bright spots of the year. In practice, project traffic means, for example, importing wind turbines to the ports of Vaasa, Kokkola and Kalajoki. This business has very good prospects as wind power will be expanded significantly in the coming years, especially in central and northern Finland. Another bright spot is our increased investment in timber logistics, which led us to establish ourselves in a number of new locations in the country.
The operations in the ports of southern Finland also performed very well in 2022. Bulk volumes in Mussalo and Vuosaari port developed excellently. In Hanko port we took among other things advantage of the high fuel prices and the shortage of drivers, which was reflected in the increased demand for RO-RO services in Hanko. When it is expensive to drive by road, it pays to transport goods by sea instead. The shortage of containers also increased the demand for RO-RO traffic.
As Finland’s leading port operator, we at KWH Logistics also want to be an industry leader in sustainability. This is reflected in our investment in electric vehicles and machinery, and in the launch of a major sustainability and quality project. This also means intensified HR work with increased investment in staff training.
The past year has taught us that both we and our customers need to build more agile, resilient supply chains in the future. I believe that large fluctuations in supply, demand and costs are the new normal. Supply chains need to be able to handle these disruptions, whenever and wherever they occur. At KWH Logistics, our goal is to meet our customers’ logistics challenges even better than before by taking into account all possible risks and thus preventing disruption.
Joakim Laxåback, Head of Division, KWH Logistics
KWH Logistics – Finland’s leading port operator
- KWH Logistics is Finland’s leading port operator with operations in all major ports in Finland. The Group also includes several subsidiaries working in other logistics areas.
- Thanks to its many local subsidiaries, KWH Logistics works very closely with its customers. At the same time, the company is able to offer total solutions for its customers’ logistics, with its subsidiaries working together.
- Another of KWH Logistics’ strengths is its strong investment capability, which allows the company to quickly start up new operations according to customer needs.
Hamina, Hanko, Kalajoki, Kokkola, Kotka, Koverhar, Kristiinankaupunki, Naantali, Oulu, Pori, Raahe, Tornio, Turku, Uusikaupunki, Vaasa, Vuosaari (Helsinki)
Heinola, Jakobstad, Kokkola, Kärkölä, Pellos, Rauma, Savonlinna, Sotkamo, Uusikaupunki, Vaasa, Äänekoski
Akaa, Haapajärvi, Hyrynsalmi, Kontiomäki, Nivala, Seinäjoki, Ylivieska, Ämmänsaari
- Stevedoring, freight forwarding, ship customs clearance and port logistics for bulk cargo, general cargo and heavy project loads.
- Blomberg Stevedoring, Jalander Rauanheimo, Rodén Shipping, Stevena
- Global logistics solutions with different modes of transport.
- Backman-Trummer (Freight Forwarding department), Moonway
- Handling of goods in ports, terminals and industrial areas. Hire of heavy machinery and special tools.
- Adolf Lahti, Blomberg Rent