Logistics in Finland megatrends and game changers

Transcription

1 Logistics in Finland megatrends and game changers Markku Henttinen, CEO, The Finnish Association of Purchasing and Logistics (LOGY)

2 Content What s LOGY? Logistics costs in Finland Industrial structure in Finland Import and export Trade with Russia Future infra plans Sustainability development Game changers in Baltic Sea region

3 Purchasing and logistics professionals meet in LOGY

4 Mission: LOGY offers a network and services to promote know-how, innovations and competitiveness. Vision: LOGY is the largest network of supply chain management professionals in Finland. LOGY offers latest information, innovative ideas and valuable contacts.

5 Services 1 District and Forum services - 12 regional districts and 4 forums: Purchasing, SCM, Transportation and Warehousing & Materials handling forum 2 Seminars and exhibitions 3 Education 4 Purchasing & Logistics -magazine

6 LOGY Indicator answers per survey 1/3 logistics service providers, 1/3 logistics service byers and 1/3 purchasing professionals 180 Composite Indicator Situation Expectations Climate /Q1 2013/Q2 2013/Q3 2013/Q4 2014/Q1 2014/Q2

7 Logistics cost in Finland Logistics costs of Finnish manufacturing and trading firms on average 12.1 % of sales Share of transportation costs (at 4.6 %) has slightly increased Industry weighted logistics costs in 2011: 33.1 ( 34.7 billion in 2009), of which over half was in-house costs. Without overseas subsidiaries, total logistics costs of Finnish firms equaled 8.6 % of GDP in 2011 (10.2 % in 2009). The decline is mainly caused by the diminishing share of manufacturing in the Finnish GDP.

8 Logistics expenditure in Finland % of turnover in industry and trade Other Administration Stock capital Warehousing Transportation incl. packaging Ref. Ministry of Transport and Commu nications, Finland State of Logistics 2012

9 Sourcing Low Cost Countries attractive option for the sourcing and manufacturing activities of Finnish companies 55 % of companies answering the question plan to expand their manufacturing in Low Cost Countries The corresponding number for firms expanding their domestic manufacturing was 37 % Ref. Ministry of Transport and Commu nications, Finland State of Logistics 2012

10 Industrial structure in Finland Acrigultural production Industry Construction industry Public services Private services Ref. Statistics Finland

11 Import and export Share of import 1-6/2014 -total 33,55 mrd Share of export 1-6/2014 -total 32,13 mrd Others 31 % Russia 16 % Germany 13 % Others 36 % Germany 12 % Sweden 11 % Russia 9 % Norway 3 % United Kingdom 3 % France 3 % Denmark 3 % USA 4 % China 6 % Sweden 11 % Netherlands 7 % France 3 % Estonia 3 % Belgium 3 % China 5 % USA 6 % United Netherlands Kingdom 6 % 6 % Ref. Finnish customs

12 Finnish trade with Russia Import Export Ref. Finnish customs Export declined 16 % 1-3/2014 Germany currently the biggest trade partner

13 Future infra plans?

14 Sustainability development 2015 SECA SECA, Baltics, US coast (2015) SECA, Global ( ) NECA (20xx) CO2 Particles (PM) Game changers SECA = sulphur emission comfort area NECA = nitrogen emission comfort area Ref. Logistics Seminar 2014 / Kari-Pekka Laaksonen

15 Possible solutions for ship fuel 2015 OPTIONS TECHNOLOGY POSITIVES NEGATIVES 1. Marine Gas Oil (MGO) 2. Scrubber with Heavy Fuel Oil (HFO) 3. Liquefied Natural Gas (LNG) 4. Alternative fuels (methanol, biofuels, solar, wind...) Normal diesel oil Wash SOx emissions from exhaust gases Use LNG as a fuel Utilise next generation fuels No major modifications to vessels needed Can be retrofitted to some vessels Environmental friendly Future potential benefit from emission trading Tackling also future legislation needs: CO2, NOx Market price already existing for natural gas Clean from environmental perspective Running cost 50% more expensive than HFO or LNG In order to keep costs down, slow steaming needed Helsinki Rotterdam: plus one day? Implementation cost: 3-6 M / vessel Not yet proven technology Can not be fitted in all of the vessels Doesn t fulfil future NOx legislation LNG supply infrastructure only building up in North and Baltic Sea LNG-engines and tanks much more expensive than traditional ship engines & HFO tanks Large-scale technology not yet in place Availability? Ref. Logistics Seminar 2014 / Kari-Pekka Laaksonen

16 Possible solutions for ship fuel 2015 OPTIONS TECHNOLOGY POSITIVES NEGATIVES 1. Marine Gas Oil (MGO) 2. Scrubber with Heavy Fuel Oil (HFO) 3. Liquefied Natural Gas (LNG) 4. Alternative fuels (methanol, biofuels, solar, wind...) Normal diesel oil Wash SOx emissions from exhaust gases Use LNG as a fuel Utilise next generation fuels No major modifications to vessels needed Slow steaming, scale of economics Expensive fuel Cost driven (operational efficiency) Can be retrofitted to some vessels Environmental friendly Future potential benefit from emission trading Tackling also future legislation needs: CO2, NOx Market price already existing for natural gas Clean from environmental perspective Running cost 50% more expensive than HFO or LNG In order to keep costs down, slow steaming needed Helsinki Rotterdam: plus one day? Implementation cost: 3-6 M / vessel Not yet proven technology Can not be fitted in all of the vessels Doesn t fulfil future NOx legislation Part solution, bridge in between Useful when SECA expands Doesn t tackle to-be legislation (e.g. Nox...) LNG supply infrastructure only building up in North and Baltic Sea LNG-engines and tanks much more expensive than traditional ship engines & HFO tanks Mid-to-long-term solution LNG supply infrastructure only in developing phase Too early for commercial use Future solution? Large-scale technology not yet in place Availability? Ref. Logistics Seminar 2014 / Kari-Pekka Laaksonen

17 One estimate of share of different vessel fuels in Baltics > HFO= Heavy fuel oil LNG= Liquefied natural gas MGO= Marine gas oil Ref. Gasum

18 Opportunities in procurement and logistics in healthcare sector Children and pensioners per 100 people at working age AGE Over 65 year Under 15 years Ref. Statistics Finland

19 Finland s 100 new opportunities Radical technological solutions: Automatisation of traffic Changes in industrial production - 3D printing Virtualisation of trade and services Individual learning Added value of intelligent goods Internet of things Ref. The Committee for the Future of Finnish parliament 6/2013

20 THANK YOU! QUESTIONS? The Finnish Association of Purchasing and Logistics (LOGY) Nuijamiestentie 3 A, FI Helsinki, Finland tel yhdistys@logy.fi