Strategic Growth in the Southern Baltic Sea

During the past few years Finnlines has built large and environmentally friendly vessels, but also expanded its route network with new ports in the Bay of Biscay and by the North Sea. The latest addition is Świnoujście, which is located in the central part of the southern Baltic Sea coast. Since 10 April 2024, a freight-passenger vessel operates there daily from Sweden’s third largest city, Malmö, or to be more exact, from the Copenhagen Malmö Port (CMP) located at the crossroad, which links Scandinavia and the Continent.

YEARS 2022–2023 HAVE BEEN ECONOMICALLY CHALLENGING with a war in Ukraine, which caused rocketing energy prices when all trade with Russia was suspended. Hence, logistics flows have changed when oil and other raw materials have been imported from distant overseas directions instead of Russia. Economies have suffered from high inflation and high interest rates. Consumption patterns have also changed, first during the Covid pandemic, then as a consequence of economic turndown.

HOWEVER, EVEN DURING TIMES OF UNCERTAINTY, PORTS OFFER CRITICAL INFRASTRUCTURE when indispensable goods flow in and out and create stability and reliability. The success of working supply chains and intraregional trade is reflected in the ports’ statistics. In 2023, the seaports in Gdansk, Gdynia and Szczecin-Świnoujście handled more than 145 million tonnes of cargo, an increase of nearly 10 per cent compared to 2022. CMP experienced a record turnover, an increase of 11 per cent in 2023.

The ports in Poland and Sweden are working on many ambitious projects. The Port of Gdynia, which Finnlines vessels also call, has been working on an Outer Port project where the target is to have deep-water quays to welcome the largest vessels that can enter the Baltic Sea. Szczecin-Świnoujście Seaports have adopted expansion plans with the aim to make them key hubs in the global supply chains in Central and Eastern Europe.

CMP HAS FULL SERVICE CAPACITY and can handle everything from consumer goods, oil products, and chemicals to scrap metal, building materials, wood pellets, and industrial inputs. The surrounding
infrastructure for road and rail traffic is very well developed. CMP also focuses on sustainability and is confident that the goal of zero carbon emissions will be reached by 2050.

Additionally, CMP has developed a collaborative hub near the ISPS area of the Norra Hamnen terminal. The Malmö Industrial Park offers an ideal location for
companies in manufacturing, storage, and logistics, which will boost the development of the infrastructure in the area. This is especially beneficial for international companies.

Finnlines continues its investments in new eco-friendly vessels and workds hard to support its customers to grow.

THE NEW LINE BETWEEN SWEDEN AND POLAND HAS BEEN WARMLY WELCOMED BY CUSTOMERS, who have been very satisfied with the high quality of services. The travel environment is comfortable and the timetable is convenient as drivers can have their rest hours. Lorries can easily drive from the port in Malmö to the Öresund Bridge and continue to Denmark or anywhere in Europe. The Ports of Szczecin and Świnoujście have good highway connections with the south of Poland, Czech Republic and Slovakia, and then with Southern Europe. Both ports also have good rail connections.

Finnlines targets at increasing intermodal volumes on its route to and from Malmö and expand intermodality on the Eastern corridor, Poland.
Intermodal transport has many advantages. Extra handling of cargo can be eliminated when cargo is maintained in the same load unit throughout the
transport chain. When large volumes are shipped, the transport cost per single unit and ton is reduced. The impact on the environment also reduces.

ACCORDING TO HELSINKI COMMISSION, an intergovernmental body, around 2,000 ships pass through the narrow straits in the Baltic at any given time.
The Southern Baltic is a highly competitive environment but Finnlines is a forerunner for the tonnage deployed and services offered as the company has invested hugely in fleet renewal and upgrades.

Today there are clear signs of recovery, but also challenges. Intra-European trade is forecasted to be growing over next years but the “Fit for 55” and “Fuel
EU Maritime” regulation may suppress these prospects when the shipping industry is being heavily taxed. Yet Finnlines will continue its investments in new ecofriendly vessels and work hard to support its customers to grow.