Five more years in Kiel with new capacity

“Our collaboration with the Port of Kiel has deepened since we established ourselves here in 2016,” says Jörn Grage, SCA Logistics Terminal Manager in Kiel.

SCA Logistics operates a modern multimodal terminal in Kiel, built to accommodate all types of vessels and cargoes. Aside from products from the forest industry, the terminal can handle general and project cargoes for shipment by sea, road and rail.

Last autumn, a 6,000-square metre tent was erected at the terminal, and an existing area of 7,000 square metres was converted into permanent warehousing. The solution was completed in only six weeks. The combination of a long-term contract with the ability to rapidly implement is indicative of how SCA Logistics and the Port of Kiel are developing operations both strategically and practically.

Tailor-made from scratch

SCA Logistics established a terminal in Kiel having evaluated a number of ports along Germany’s North and Baltic Sea coastline. The decisive factor in Kiel’s favour was that the port had available space for expansion and was prepared to adapt facilities to the company’s needs.

Today, the terminal can handle both RoRo and breakbulk vessels on the same site, which is equipped with cranes and multiple RoRo ramps. Another important factor is the port’s intermodal connections. There are several railway lines connecting to the terminal with the capacity to handle full size freight trains, thus facilitating efficient freight forwarding within Europe.

In addition to SCA, Kiel also handles cargo flows for companies such as Holmen Board and Paper. Around half of shipments are destined for customers in Germany, while the rest are shipped elsewhere in Europe or, in some cases globally.

“We have global access from here and we are like a spider in the web,” says Jörn Grage, SCA Logistics Terminal Manager in Kiel

Long-term commitment and mutual trust

The partnership between SCA Logistics and the Port of Kiel has gradually deepened since the terminal opened in 2016. According to Jörn, the relationship is characterised by a long-term perspective and a distinct customer-oriented mindset. The new five-year extension is a natural continuation of an established partnership that sees both parties investing for the future.

“We speak the same language and the port here is keen to meet our needs, and those of our customers,” says Jörn.

Rapid action when production at Obbola increased

The background to the increase in capacity during the autumn is the expansion of the Obbola Paper Mill, which has gradually increased its production of containerboard.

“The new paper machine is in ramp-up phase and as production has increased so has the need to deliver the increased volumes to customers, and this mainly takes place via Kiel,“ says Jörn.

Larger volumes per departure mean that more storage space is needed. A number of alternatives were analysed: moving some of the cargo flow to another port, awaiting the development of a new 60,000-square-metre expansion zone – or quickly coming up with a solution in the existing space.

Spreading the volume was deemed to be impractical and costly. Instead, a hybrid solution was chosen. A tent was erected to protect cassettes from the elements after unloading, while at the same time a 7,000-square-metre cassette warehouse was converted into a customised paper warehouse, including the installation of a new floor. The plans were prepared in just three weeks and the Port of Kiel decided to invest €3 million in the project. The work was completed six weeks later.

“An additional 7,000 square metres ready! And the 6,000-square-metre tent will remain as a cassette warehouse,” says Jörn.

The terminal area in Kiel has expanded rapidly in recent years to support growing cargo flows.

More opportunities in future

With the new contract in place, Jörn sees many development opportunities. The terminal will be able to handle more sawn timber products and could potentially accommodate more breakbulk vessels and invest in more efficient unloading equipment. Meanwhile, container volumes are increasing. Empty containers are currently collected from Hamburg by truck, but a sufficient increase in volume might make new arrangements feasible.

“Once volume has increased by a given number of containers per day, we can discuss having vessels call at Kiel as well,” says Jörn.

Moreover, an increased flow of recovered paper bound for SCA’s mills in Sweden will provide better balance between southbound and northbound journeys.

“This allows us to better fill the vessels in both directions,” says Jörn.

Text from SCA Logistics magazine “New Ways”: Håkan Norberg

Photo: Port of Kiel Marketing