A year of upheaval
In the KWH Group’s last annual report, I predicted that abrupt changes are the new normal, and now a year later I can see that I seem to have been right on that point. 2023 was not a calm, stable year for KWH Logistics either; the fluctuations continued. Since transit traffic from Russia largely fell away in 2022, we initially managed to compensate big part of the loss with new partnerships, especially with the forestry and steel industries. However, in the second half of 2023, the forestry industry started to slow down on account of the economic situation and we saw a drop in demand.
While 2023 did not turn out as we had hoped, there are still many bright spots from the year that bode well for the future. We managed to secure several new long-term contracts with different sectors and have many promising projects in the pipeline. We also managed to sign many long-term agreements to manage import volumes of raw materials for major domestic industries. Furthermore, we took over the raw material handling at Europe’s largest veneer factory, and initiated new flows of sawn goods in the ports of Oulu, Mussalo and Vuosaari.
We have strong confidence in Finnish industry and I am convinced that the current slump in the forestry industry is temporary. Since we believe in the future, we continued to invest heavily in 2023, a total of EUR 34.7 million. It is worth noting that machinery investments are now often made in hybrid and electric machines in line with our sustainability goals.
2023 also saw other interesting events. Otto Rodén’s operations were merged with Rauanheimo to achieve synergies in Kokkola. In addition, we established a completely new ship customs clearance brand, Galea Shipping, which began operating in early 2024. Previously, ship customs clearance was spread across our various stevedoring companies and the company Jalander, but thanks to the new arrangement, we can share knowledge and achieve synergies. Another interesting future venture was the purchase of the port of Karhusaari in Kristiinankaupunki, given the planned investments in the area.
During the year, we worked actively on HR and health and safety issues. I am proud that we managed to double the number of proactive safety observations and reduce the accident rate. As we consist of several different subsidiaries, it is also important to focus on a shared corporate culture, and several efforts were made in this regard last year.
Despite the challenging market situation, we look to the future with confidence. According to a 2023 customer survey, our strengths are seamless communication, flexibility and responsiveness. We remain the leading port operator in Finland, and thanks to our broad geographical coverage we can offer customers a superior range of route options and logistics solutions.
Joakim Laxåback
Head of Division, KWH Logistics
KWH Logistics – Finland’s leading port operator
- Wide range of services: KWH Logistics is one of Finland’s leading port operators with operations in all major ports in Finland. The Group also includes several subsidiaries working in other logistics areas.
- Many subsidiaries: 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.
- Strong investment capacity: One of KWH Logistics’ major strengths is its good investment capacity, which allows the company to quickly start up new operations according to customer needs.
