annual report port of turku 2020

ANNUAL REPORT PORT OF TURKU 2020

2 ANNUAL REPORT - Port of Turku Ltd 3

YEAR 2020 IN BRIEF .................................................4

OPERATING ENVIRONMENT AND STRATEGY . 10

OPERATIVE FUNCTIONS ....................................... 12

RESPONSIBLE PORT .............................................. 22

ECONOMY ............................................................... 30

TABLE OF CONTENTS

4 ANNUAL REPORT - Port of Turku Ltd

AN EXCEPTIONAL YEAR IS BEHIND US

5

Year 2020 will go down in history as a very exceptional period of time. The positive outlook early in the year quickly turned uncertain as a result of the global news about the pandemic, and in March the coronavirus epidemic also arrived in Finland.

CARGO TRANSPORTS SECURED THE OPERATIONS OF THE PORT

In the Port of Turku the impacts of the epidemic hit hardest the shipping companies operating the service between Turku and Stockholm, as the restrictions decided on by the Finnish Government stopped passenger traffic between the countries almost completely. When the passenger traffic ground to a halt, cargo transports became the backbone of the port operations, which was further affected by the support from the National Emergency Supply Agency for maintaining the connections.

Both Viking Line and Tallink Silja concentrated their Scandinavian traffic to Turku, as a result of which the Port of Turku’s cargo transport volume increased by 12.2 per cent compared to 2019. The passenger traffic volume on the other hand decreased by around 65 per cent as the number of passengers was just 1.1 million. The bright spot of the summer season was Tallink Silja’s direct connection from Turku to Tallinn which was very popular.

On the whole, Port of Turku Ltd did well in the difficult circumstances, helped by discipline

with costs. As a responsible employer the port enterprise also looked after its personnel in such a way that no employees were laid off or dismissed during the year.

POSITIVE VIEW INTO THE FUTURE

The Port is entering the new year full of hope, although the pandemic still has a firm grip in Finland and especially elsewhere in Europe in early 2021. The starting of vaccinations, however, sheds light to the future and gives hope for restarting and growth of passenger traffic.

6 ANNUAL REPORT - Port of Turku Ltd 6

17 Jan Mann Lines opened a new ro-ro ship connection from Turku to Rotterdam.

22–23 Jan NaviGate fair, Turku.

4 Mar Advisory service on the coronavirus started in the terminals for passengers arriving in Finland.

16 Mar The Finnish Government declared state of emergency in Finland due to the coronavirus.

16 Mar Person and passenger traffic to Finland was interrupted.

2 Apr Sad news about the passing away of Harbour Master and Security Manager Kari Riutta.

1 May Pauliina Roti started as the Security Manager.

1 Jun Teemu Aaltonen was elected the Deputy Harbour Master.

15 Jun 5G network was piloted in the port area as part of the SecurePax project.

6 Jul Automated mooring system equipment arrived in the Port.

7 Jul Tallink Silja started cruises from Turku to Tallinn.

1 Aug Sari Koskinen started in the new position of HR Manager.

27 Aug Fixed-boom harbour crane Mantsinen was sold to the Port of Sevilla in Spain.

11 Sep Two Nato frigates, CorteReal and Toronto, arrived for a navy visit in Turku.

17 Sep Managing Director Erik Söderholm was elected to the Board of the Finnish Port Association.

27 Oct Cleaning days of the port area in co-operation with the port service providers.

27 Nov Intensive security control campaign in the port area.

17 Janua

ry

16 Mars

6 July

27 Novem

ber

7

17 Janua

ry

6 July

27 Novem

ber

During 2021, the bottled up demand in travelling will begin to unleash as the vaccinations proceed, which will be first reflected in sea travel. A clear turning point is expected to take place already next summer as individuals and groups will go out to the sea to have fun and e.g. hold conferences. A real peak in the growth of the traffic volume between Turku and Stockholm will be provided by the new vessel Viking Glory which will start operating at the beginning of 2022. Looking further into the future, the Port of Turku will also be strengthened by the trend that favours travelling by land, as the ships departing from Turku allow for convenient transfer to high-speed rail connections being planned from Stockholm to Continental Europe.

The expectations for cargo transports are also positive. In 2020 the Port of Turku proved its functionality to a large number of new customers, too. The shortest and fastest route to Scandinavia and schedules suited to the driving regulations of cargo transports will be at disposal of them and all our other customers also when the exceptional times have been left behind. In addition to unit cargo, project shipments are expected to grow, and the Port of Turku can offer both capacity and a high standard of services for them.

Switching to remote pilotage is an important reform for the future of the Port. Remote pilotage aims at increasing the efficiency and flexibility of pilotage services and reducing the pilotage costs, which is very significant to Turku where the pilotage distances are long. In addition to cargo transports, it will also benefit cruise lines.

INVESTMENTS SUPPORT CONTINUING DEVELOPMENTNegotiations on the building of a new joint terminal in the Port of Turku continued during 2020. The goal is to make the decision in the summer, which would allow for introducing the terminal in December 2025. In addition to the terminal building, the project includes e.g. a new quay solution, and new arrangements in the field area most of which have been implemented already. The new automooring system has also been installed and is ready to be taken into use as soon as Viking Glory starts its service in Turku. Combined with the new traffic arrangements, they form a major investment directed far into the future.

I want to thank all of our customers, partners, administration and personnel for good co-operation at hard times. In 2020 we showed that with co-operation and a positive attitude we will make it through even challenging times.

Erik Söderholm Managing Director

Port of Turku Ltd


RO-RO TRAFFIC

2.0million tons

PASSENGER TRAFFIC

1.1million passengers

VEHICLES

156,178 pieces

KEY FIGURES 2020

TOTAL TRAFFIC

2.4million tons

VESSELS

1,938pieces

12.2%

-1.8%

10.1%

NET TONNAGE OF VESSELS

45.9million net tonnage

3.7%

-65.1%

-44.4%

9

BUSINESS SURPLUS

4.1MEUR

EQUITY RATIO

32.4percent

RESULT

-0.0MEUR

AVERAGE NUMBER OF EMPLOYEES

61persons

TURNOVER

21.9MEUR

INVESTMENTS

6.4MEUR

-7.6% -14.8%

1.9%88.2%

-101.8%

-7.6%


Port of Turku Ltd is the centre for Scandinavian traffic in Finland and an important logistics link for businesses to the rest of Europe and, through ocean lines, around the world. Our core task is to ensure that passengers and cargo are carried from port to port on time, safely, flexibly, and efficiently.

The Port of Turku is the second biggest passenger harbour in Finland and a shortcut to the world for Finland’s foreign trade. The focus of cargo transports lies in unit cargo, transports of processed goods, and project shipments of industry. In these areas we want to be genuinely the most interesting choice for all those that need flexible and efficient port services and fast transport connections.

CUSTOMERS ARE AT THE CENTRE OF THE PORT’S STRATEGY

Customers are at the centre of everything we do. We develop the Port in co-operation with our customers and take their needs and possibilities into account in all our operations. By renewing the Port’s infrastructure and utilising digitalisation we will improve the operating prerequisites of passenger traffic and cargo transports with regard to both our current customers and operators that generate new flow of passengers and cargo. By offering up-to-date facilities and services we will create added value for shipping companies, transport companies, the business world as well as travellers.

CHANGES BRING NEW OPPORTUNITIESThe operating environment of the Port of Turku is continuously evolving and changing. The most significant drivers for change are related to environmental protection, digitalisation, and town planning of the City of Turku. The market conditions and the competition between ports are affected most by traffic policy decisions that guide the development of traffic routes in Finland. By being active in different forums we aim at steering the changes and reacting quickly to their effects on the Port’s operations.

TOWARDS ENVIRONMENTALLY SOUND MARITIME TRAFFIC

The environmental work of the Port of Turku focuses on water protection in the Baltic Sea, which is of great importance to us, reduction of emissions into air, and improvement of energy-efficiency. We take environmental points of view into account and follow the environmental impacts while developing the Port’s operations, and we require the same from our partners and

PORT OF TURKU IS PROVIDER OF OPPORTUNITIES

11

subcontractors. The Port has its own environmental programme, and an environmental report based on it is published annually. The Port also applies environmental vessel charges in which the discount is based on the international Clean Ship Index. In addition, we participate in the implementation of carbon-neutral Turku.

DIGITALISATION ENHANCES THE FLOW OF TRAFFIC AND SERVICES

Regarding the digitalisation of port services, the Port of Turku is one of the pioneers in its field. We have introduced new technology e.g. in the traffic guidance of the passenger harbour, and the measurement, weighing and photography services for vehicles. The Port’s new automooring system that speeds up the mooring and unmooring of vessels is also based on digitalisation. Port security has been improved by renewing the CCTV systems for more efficient surveillance of the area. Furthermore, the Port is preparing for the introduction of its own 5G network in the port area.

CHANGES IN THE URBAN ENVIRONMENT BRING BENEFITS AND CHALLENGES

The biggest changes in the surroundings of the Port result from the building of new residential areas in the vicinity of the port, and the plans for the Linnanniemi district around the Turku Castle. Both provide benefits and challenges for the port operations, as they make the port environment more comfortable and attractive, but also require new solutions. The planning is indeed conducted together with the City and other players to make the port traffic flow smoothly and to secure the operating prerequisites of the companies operating in the port.

PROMOTING OF PORT CONNECTIONS IS A COMMON CAUSE

Active co-operation is also needed to achieve decisions on fairways that are beneficial to the province on the whole. In addition to the condition and capacity of the main highways, attention should be directed at rail traffic. Apart from the one-hour train in Turku, it is important to shift part of the cargo transports on rails for the sake of the environment, too, and the Port of Turku is fully prepared for that. The most significant positive effect on sea connections arises from the transfer to remote pilotage, which is a major reform in Turku where the pilotage distances are long.

Customers are at the centre of everything we do. We develop the Port in co-operation with our customers and take their needs and possibilities into account in all our operations.

PORT OF TURKU IS PROVIDER OF OPPORTUNITIES


OPERATIVE FUNCTIONS

A DIFFICULT YEAR FOR PASSENGER TRAFFIC

The majority of the passenger traffic in the Port of Turku comprises of the liner services between Finland and Sweden which are complemented by visits of international cruise lines. The attraction of the port to tourists is based on the views offered by the archipelago surrounding Turku, high-quality vessels and services, interesting sights in the city, and easy access to the port from different parts of Finland.

The start of 2020 was promising for passenger traffic in the Port of Turku. During the first two months of the year the passenger volumes were still higher compared to the previous year, but from March on the figures fell rapidly due to the global coronavirus pandemic.

As a result of the travel restrictions set by the Finnish Government and the general fear about the spreading of the disease the number of passengers in 2020 stood in the end at just 1.1 million. Compared to the previous year, two

million passengers less travelled through the Port of Turku. Thanks to the demand for the cargo transports between Turku and Stockholm the ferries of both Viking Line and Tallink Silja operated as per normal throughout the year, which enabled necessary travel also during the restrictions. During the quieter epidemic phase in July and August Tallink Silja also operated direct departures from Turku to Tallinn. The shipping companies did a good job in reducing the risk of infections and ensuring the safety of passengers.

Travel restrictions are expected to be lifted during 2021 as the coronavirus vaccinations proceed. The Port of Turku believes that it will lead to strong growth of demand for sea travel once the bottled up demand begins to unleash. It is to be expected that when travelling is gradually released, the demand will at first be directed at trips to nearby destinations, and that will considerably benefit the Port of Turku as the market leader of passenger traffic between Finland and Scandinavia.

The future of passenger traffic in the Port seems

13

PASSENGER TRAFFIC, million passengers

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2016 2017 2018 2019 2020

3.3 3.3 3.33.1

1.1


As a result of the travel restrictions set by the Finnish Government and the general fear about the spreading of the disease the number of passengers in 2020 stood in the end at just 1.1 million.

bright also otherwise. In early 2022, Viking Line’s new flagship m/s Viking Glory will start service on the company’s Turku–Stockholm route. The most modern and environmentally sound passenger vessel in the Baltic Sea will offer unique experiences while sailing through the most beautiful archipelago and sea views in the world. After the arrival of the new ship the route between Turku and Stockholm will be operated by the newest, most comfortable and environmentally sound stock of vessels in the Baltic Sea. The completion of the new joint terminal and the building of the Linnanniemi district planned around the Turku Castle will certainly bring new customers to the passenger traffic in the Port of Turku, too.

In addition to the travel between Finland and Sweden, the Port of Turku provides a fast and trouble-free route to the passengers heading further to Europe in their own car. In the future, it will be possible to continue after the sea voyage by a high-speed train connection to the heart of Europe when the new rail connections being planned in Sweden are completed.

Cruise liner traffic is waiting for the next summer

The coronavirus also removed the passengers from the cruise liner traffic in the Baltic Sea. Based on advance booking, the Port of Turku was waiting for a record high number of vessel calls, but none took place in 2020.

As for 2021, the situation is still expectant regarding at what point of the year the cruise liner traffic will restart. At the time, five vessel calls have been booked for the next summer, three of which are for the same ship. Each of the ships is coming to Turku for the first time, which indicates successful marketing efforts of the Port of Turku and Visit Turku as well as the need of the cruise lines to find new ports of call for their customers.

Timo Jokiranta works in Port Control as the Shift Supervisor of Vessel Traffic Services and Crane Operations. In practice it means co-operation with the agents of shipping companies and supervision of work when a ship arrives and is moored, unmoored, water is supplied, and crane services are arranged.

”The pandemic was most visible as increased contacts of the citizens to the 24-hour telephone service of Port Control. At first there was a lot of uncertainty both among those asking the question and those answering them”, Timo says.

Passengers were interested in practical arrangements; whether people arriving by ship are tested in the terminal. As agreed, Port Control

TELEPHONE RANG FREQUENTLY IN PORT CONTROL AT THE BEGINNING OF THE PANDEMIC

15

Teemu Aaltonen started as Deputy Harbour Master for Vessel Services under the Port’s Operative Department at the beginning of June 2020.

“I started my new job as the Deputy Harbour Master in the middle of the coronavirus pandemic, so it’s been an everyday feature since the beginning. When the whole thing started, it gave me the creeps and I thought about different scenarios on how the pandemic will affect”, Teemu says.

Operative work is done on site, so only meetings are held through remote connections. Teemu thinks that Teams adds opportunities to working, as you stop to think what kinds of meetings and travel are necessary, or whether you can do it remotely.

The pandemic is visible in the everyday activities of Vessel Services so that the employees in the morning and evening shifts have their own social facilities, and e.g. keyboards and surfaces are disinfected at the end of each shift. The cleaner comes in before the shift starts. Masks and hand sanitisers are in use in the same way as elsewhere. There are separate entrances

to the control room and social facilities, and passing through and visits in the office premises are prohibited. It’s easy to keep safe distances in a group of 14 employees, and there are three vehicles available, so it’s possible to take separate vehicles to go to the work site.

“As the pandemic situation progresses, the Port has created new instructions to improve the flow of information. For example, we are notified about suspected corona infections on-board a vessel in real time. We are not in direct contact with the crew of the vessels, but the work of pilots, for example, is challenging when they embark a ‘corona ship’ and the work may last for hours. Due to the pandemic the pilotage is arranged in the day-time when the visibility is better. While wearing a mask or visor e.g. glasses may fog up”, Teemu says.

He does not feel that the pandemic has affected his leisure time any more than that of others. Teemu plays padel and the courts are open for the game. He would like to travel, like probably the rest of us. The Tall Ships Races also makes him think how an event with expected large audience can be organised safely.

advised the people to contact the Border Guard and the health care authorities. The number of telephone calls has decreased as the pandemic has progressed. People can now find the instructions by themselves on the internet.

Timo thinks that we could learn from the pandemic to disinfect the surfaces of telephones and computer keyboards in common use also in the future. “It’s a very good habit to disinfect e.g. the keyboard when the same computer may have 5–6 users during the day. That will stop the spreading of the virus at least through those surfaces right away”, he says.

TELEPHONE RANG FREQUENTLY IN PORT CONTROL AT THE BEGINNING OF THE PANDEMIC

NEW INSTRUCTIONS FOR IMPROVED FLOW OF INFORMATION WERE CREATED AMIDST THE PANDEMIC


VESSELS, pieces

0

400

800

1,200

1,600

2,000

2,400

2016 2017 2018 2019 2020

2,006 1,9941,884 1,972 1,938

The same message is conveyed by the inquiries of cruise organisers, and their large number creates a trust in the future of the cruise business.

Another positive piece of news for the future of the cruise business is the progress of the Linnanniemi district planned around the Turku Castle. Located next to the Port, Linnannniemi will be built into a centre of urban culture the year round with a strong presence of the sea and history. Key roles in the development of the area will be played by the Turku Castle, The Forum Marinum Maritime Centre, and the Museum of History and the Future that will be placed in the area at a later date.

There is a dedicated quay for larger cruise liners in the inner harbour which is ready to receive up to 230 metres long vessels. Whenever possible, vessels with a length of under 100 metres will be berthed in the River Aura from where the passengers have just a short walk to the city-centre along the riverside streets. In co-operation with VisitTurku the passengers are offered diverse services ranging from guidance to excursion programmes.

CARGO TRANSPORTS INCREASED IN EXCEPTIONAL CONDITIONS

The cargo transports in the Port of Turku comprise of unit cargo, transports of processed goods, and demanding project shipments of industry. Regular frequent liner services to Scandinavia and other key ports on the Baltic Sea as well as connections to ocean lines

The importance of the connection between Turku and Stockholm concretised with the pandemic.

add flexibility to the shipment schedules of companies, enhance the cost-efficiency of logistics and strengthen supply reliability.

The cargo transports in the Port of Turku grew in 2020 partly due to exceptional conditions, but the cargo volumes already increased from the beginning of the year on. Growth accumulated especially from Scandinavian traffic, as both Viking Line and Tallink Silja focused all their services between Finland and Sweden to run through the Port of Turku.

On the whole, a total of 2.4 million tonnes of cargo passed through the Port of Turku, up by 12.2 per cent on the previous year. In unit cargo the growth was nearly 18 per cent. Exports accounted for 1.2 million tonnes of the transports and imports for 1.2 million tonnes. The filling rates of vessels in Scandinavian traffic were at a high level throughout the year, and the capacity released from passenger cars was efficiently used.

Positive development also took place in other liner traffic of the Port of Turku. Opened at the beginning of 2020, the connection from the Port of Turku to Rotterdam turned out to be an attractive export and import route. The connection complements the existing route of Mann Lines, offering excellent further connections to ocean lines and comprehensive rail and road connections to all over Europe.

17

TRUCK TRAFFIC, pieces

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2016 2017 2018 2019 2020

106,550 107,379

126,034

106,623100,223

0

10.0

20.0

30.0

40.0

50.0

2016 2017 2018 2019 2020

45.942.4 44.245.0 44.5

AVERAGE VESSEL NET TONNAGE, million net tonnage


are also ready to be taken into use. During the past year the field area was levelled, and the traffic guidance was developed by concentrating passenger traffic and cargo transports to the same field area and by installing digital traffic signs in the area. The reforms of the outdoor field areas of both shipping companies make the flow of cars considerably smoother and speed up the loading of the vessels.

The development goals concerning the services for goods transports are also supported by the sale of the Port’s crane business to Turku Stevedoring Oy for which a letter of intent was signed. The transfer of the crane services to the

IMPORT EXPORT

GOODS TRAFFIC, million tonnes

0

0.5

1.0

1.5

2.0

2.5

3.0

2016 2017 2018 2019 2020

At the time of Brexit the shipping company’s connection to Great Britain also turned out to be more significant than before by providing reliable solutions and expertise to companies faced with a new situation.

To enhance the cargo transport services the Port of Turku has implemented and is currently implementing a number of major upgrades, such as the new outdoor field area arrangements including new technologies in the inner harbour. New weighing, measurement and photography systems of vehicles were introduced in Viking Line’s outdoor field area, and reforms in Tallink Silja’s outdoor field area

19

port operator has been in preparation for a long time, because the actual operative work is not part of the Port’s core tasks. The decision allows for new investments in the Port’s core business and at the same time secures reliable and professional crane services to all operators and shipping companies.

The Port of Turku has space and service capacity for considerably larger cargo volumes than it currently handles. The existing infrastructure with logistics services enables the opening of new ship routes even at a short notice, using also rail transports. A special development item for new combined transports is the part of the Pansio Harbour with an existing rail connection to the national rail system and infrastructure suited to the operations. Negotiations have proceeded furthest on opening a new route to Poland, for which a letter of intent was signed with the Port of Gdynia in late 2019. Due to the coronavirus pandemic the progress of the matter has slowed down, but the goal is still to generate new cargo transports and passenger traffic between the ports and improve the competitiveness of the parties in the international transport network.

HIGH DEGREE OF UTILISATION IN WAREHOUSING SERVICES

The Port of Turku offers reliable and cost-efficient services to all cargo transport operators. The services generated for vessel traffic by the Port are complemented by modern

warehousing and terminal services that fulfil the needs of both long-term storage and fast-paced distribution operations.

The importance of the Port of Turku to Finland’s emergency supply and foreign trade was emphasised during the pandemic. The exceptional times were also visible in the high degree of utilisation of the storage and field areas, as there was more need than usual for intermediate storage in particular. Of the Port’s business areas, warehousing services grew during the pandemic. The Port’s high warehousing capacity nevertheless secured the smooth flow of goods transports. The port enterprise has more than 800,000 m2 of outdoor storage area in the vicinity of the quays and around 100,000 m2 of indoor storage space in the port and the adjoining logistics area.

The modern facilities and diverse goods handling services of the Port of Turku Ltd’s subsidiary Turku Free Zone Company Ltd are also located next to the Port. The fenced outdoor area with 24-hour surveillance is ideally suited e.g. for the storage of vehicles and industrial materials. In addition, comprehensive PDI services are available to importers of cars and agricultural machinery.

The exceptional times were also visible in the high degree of utilisation of the storage and field areas, as there was more need than usual for intermediate storage in particular.


Indoor hall space is available for all products ranging from foods to electronics, both refrigerated, heated and unheated. Furthermore, Turku Free Zone Company offers an opportunity for duty-free storage and excise tax free warehousing of alcohol products. The company’s future investments will improve the opportunities of Turku Free Zone Company to provide services to new customers.

The year 2020 was a good one for Turku Free Zone Company, although the markets were disturbed by problems with availability of components and closing of factories around the world due to the coronavirus pandemic. The business operations developed favourably throughout the year, especially in warehousing and logistics services. Turnover stood at 2.9 million euros, up by around 10.7 per cent on the previous year.

The biggest development project of the Port of Turku is the planning and construction of the new joint terminal in the passenger harbour.

Port construction worker Reijo Ruusunen has been at the service of the Port for 37 years. Be-fore that he worked in hardware store Nako-rauta. Reijo has worked in maintenance posts throughout his career, although the duties have changed over time. Previously there was more actual construction included. Today, his days in the Technical Services comprise of maintenance of buildings, quays and outdoor field areas.

Reijo does not think that the coronavirus pan-demic has affected his own work much. Remo-te working is not possible. He has to use a mask e.g. when going to the hardware store or dea-ling with a tenant, but that’s the new normal al-so at leisure.

”We work quite independently in a small team, so it’s easy to keep safe distances. My leisure activities were more affected by the pandemic as the competitive sports for adults were stop-ped. I act as an ice hockey coach for adults and the series are on hold. Practising in the indoor skating rink is not allowed, so I am also taking a break from my own ice hockey playing.”

IT’S EASY TO KEEP SAFE DISTANCES IN A SMALL TEAM

21

DEVELOPMENT PROJECTS TARGET AT THE FUTURE

The biggest development project of the Port of Turku is the planning and construction of the new joint terminal in the passenger harbour. The project report on the Ferry Terminal Turku project run together by the City of Turku, Port of Turku Ltd, Viking Line and Tallink Silja was completed in 2020. Based on that, further investigations were initiated and results are expected by summer 2021. The goal is to get the construction started quickly and have the new joint terminal ready for introduction in December 2025.

Of the Port’s other development projects, the most important ones are NextGen Link and SecurePax. NextGen Link updates the sea connection between the ports of Turku, Mariehamn and Stockholm. The project focuses especially on reducing environmental impacts and enhancing the operations of the ports. Within the project the Port of Turku implemented in 2020 e.g. new measurement and photography systems for Viking Line‘s field area, and the automooring system for vessels which will be taken into use by summer 2021. Both measures

are part of preparations for the arrival of Viking Line’s new vessel and the consequently growing traffic volume. The EU-funded project’s partners are the Port of Turku, City of Turku, Viking Line, the Port of Mariehamn, and the Ports of Stockholm.

The SecurePax project aims at addressing the security challenge of ports. The goal is to study especially the use of digital technology in the security systems of the Ports of Turku and Stockholm. The piloting planned for summer 2020 had to be cancelled due to the coronavirus pandemic, but the 5G piloting in the port area was completed. In addition, the project progressed e.g. through technology mappings performed by VTT Technical Research Centre of Finland, the purpose of which was to study different methods for identifying persons and objects in terminals and vehicles.


RESPONSIBLE PORT

LOOKING AFTER OUR EXCELLENT PERSONNEL

Good, motivated and competent employees are an important resource for a service company such as the Port of Turku. That’s why the Port looked after its personnel also during the coronavirus pandemic in such a way that no employees were laid off or dismissed, but everyone continued in full-time employment despite the challenging times.

To ensure safe working environment during the coronavirus pandemic the Port has complied with common rules which have spared the personnel from infections. Administration has done remote work as much as possible, and the employees in vessel services were divided into three groups that do not encounter each other during or at changes of work shifts. In addition, the personnel is offered a chance to get tested

for the coronavirus at all times, also outside the opening hours of occupational health care services.

In 2020, the Port of Turku implemented an organization change that clarified the organization structure and re-arranged the operative units. In this connection besides amendments of job titles, new persons for the positions of the Deputy Harbour Master, the Security Manager and the HR Manager were elected. The HR Manager was recruited from outside, the others in-house.

Development of personnel expertise and investing in well-being at work are continuous focus areas for the Port of Turku. The annual development discussions map the development and training needs of each employee both at individual level and compared to the strategy of the port enterprise. In addition to expertise, the content of the development discussions also covers different areas of well-being at work and occupational safety.

The Port of Turku has also identified the needs for new kind of expertise, which will

In the Port of Turku the work is based on co-operation, with the customer always at the centre.

23

TURNOVER/person

NUMBER OF PERSONNEL

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2016 2017 2018 2019 2020

289,917 303,340 317,277

359,199 359,035

0

10

20

30

40

50

60

70

80

2016 2017 2018 2019 2020

76 75 7266

61

become visible in the Port’s recruitment policy. Employees who master new information will be needed e.g. for the implementation of digitalisation in enhancing the Port’s operations and for solving environmental questions. The Port’s goal is to be an attractive choice for people who are looking for new, interesting and meaningful work.

The Port of Turku supports the motivation and commitment of the personnel with a wide range of personnel benefits. In addition to various recreational benefits and a health insurance that complements occupational health care, there is a performance reward system concerning all personnel. The system comprises of three parts: reaching the financial goal, customer satisfaction, and number of occupational accidents. The performance rewards from 2019 for the whole personnel were paid in April 2020.

Port of Turku Ltd had on average 61 employees during the financial year. The number of permanent employees in the parent company at the end of the year was 58. One person retired on pension from the port enterprise in 2020. The Port Group had on average 78 employees during


the financial year. At year-end, the Group had a total of 74 permanent employees.

POSITIVE ACHIEVEMENTS IN ENVIRONMENTAL WORK

The Port of Turku carries out long-term environmental work that is based on concrete actions. The goal of the Port is to minimise its environmental impacts on land, at sea and in air. In addition to the nature of the Baltic Sea and Archipelago Sea, special attention is given to the demands of the expanding residential areas near the Port e.g. to decrease the adverse effects of traffic and divert it smoothly past the residential areas.

To improve the condition of the Archipelago Sea the Port of Turku stopped the disposal of dredging masses in the sea in accordance with the agreement made with the City of Turku. The sediment carried by the River Aura and the maintenance of fairways nevertheless require regular maintenance dredging. In the coming years the masses accumulated from them will be placed in the pre-construction of the Lauttaranta area in Hirvensalo, for which

0

3,000

6,000

9,000

12,000

15,000

18,000

2016 2017 2018 2019 2020

6,614 6,380 6,1356,963

15,651

Due to the coronavirus pandemic, Viking Line’s ship Gabriella and Tallink Silja’s Silja Serenade suspended their service on the Helsinki-Stockholm route and were transferred to berths in the port of Turku. The carbon dioxide emissions of those ships can be seen as a peak in the total emissions of the port area.

EMISSIONS INTO AIR FROM PORT OPERATIONS, CO2 [tons / year]

25

ENVIRONMENTAL PROGRAMME 2019–2025

GOAL: Decrease the loading of port operations caused to the water system.

GOAL: Decrease the greenhouse gas emissions of port operations by 40% from 2008–2025.

GOAL: Improve the Port’s energy-efficiency from the level of 2018.

RESTRAIN CLIMATE CHANGE AS PART OF THE CARBON-NEUTRAL TURKU URBAN AREA

ENHANCE ENERGY CONSUMPTION AND SAVE ENERGYHEALTHY MARITIME

ENVIRONMENT

the City of Turku was granted a permission in accordance with the Water Act in December 2020.

As for emissions into air, positive development continues. The situation will improve further, when Viking Line’s new vessel m/s Viking Glory will start operating in early 2022. It will replace m/s Amorella on the route and will be one of the most climate-smart passenger vessels in the world. The advanced propulsion system alone is estimated to reduce the carbon dioxide emissions by around 10,000 tonnes which equals the annual emissions of 2,200 passenger cars. Emissions will also be reduced by the Port’s new automooring system which will decrease

The Port of Turku was among the first ports to introduce environmental vessel charges. In 2020, the bases for discounts were revised to comply with the Clean Shipping Index. The index takes into account the nitrogen, sulphur and carbon dioxide emissions of vessels as well as chemicals, water waste and particle emissions.


the use of engines in vessels during their port calls.

To decrease the environmental impacts of the Port’s everyday operations, LED lighting has been installed in the warehouses and the inner harbour area, and there are plans to install solar panels on the roof of one of the warehouse shelters by the end of the year. In addition, the Port’s stock of vehicles is being replaced with electric vehicles.

The Port of Turku was among the first ports to introduce environmental vessel charges. In 2020, the bases for discounts were revised to comply with the Clean Shipping Index. The index takes into account the nitrogen, sulphur and carbon dioxide emissions of vessels as well as chemicals, water waste and particle emissions. The goal of the Clean Shipping Index is to encourage the shipping companies to use cleaner vessels by giving a high score to the most efficient ships. The buyers of transport services can use the Clean Shipping Index to calculate and minimise their ecological footprint.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2016 2017 2018 2019 2020

454,431 460,308429,261

460,077 473,778

GRANTED ENVIRONMENTAL DISCOUNTS, euro

27

The Port of Turku publishes annually an environmental statement on its operations and an environmental report, which can be viewed on the Port of Turku’s website.

NEW INVESTMENTS IN PORT SAFETY

Port safety comprises of many areas, and overall management thereof helps protect people, vessels, property and the environment from accidents, damage and criminal activities. That way safety plays an important role as part of the Port of Turku’s customer service.

From the beginning of October, the night-time guarding of the port area has been handled by Securitas Oy. The agreement was made through competitive bidding and covers the surveillance of the entire port area from the Martinsilta bridge downstream the River Aura all the way to Pansio. Guarding in different parts of the port is mainly done using CCTV, which is complemented with guards that tour the entire area. A key objective is to prevent the access and unauthorised moving about in the port area of outside persons that have no access pass, and to ensure quick reactions to different alarms.

To enhance safety services, the CCTV system of the Port of Turku was renewed completely. In the new system the alarms come directly from the cameras in which thermal sensors will spot unauthorised persons moving about in the area. Recordings of all events are also available, which allows for further investigations of the events together with different authorities.

In November 2020, an intensive security control campaign was arranged in the port area. The results of the campaign will be used in the development of security issues, and they will be reviewed in an operative meeting together with the companies operating in the port. A new

To enhance safety services, the CCTV system of the Port of Turku was renewed completely. In the new system the alarms come directly from the cameras in which thermal sensors will spot unauthorised persons moving about in the area.

Pauliina Roti started as the Security Manager at the beginning of May. She is responsible for organising the Port’s security issues and acts as the manager in the security services unit that is part of the Port’s Operative Department.

Pauliina says that the leap in using digital services for meetings has been essential during the coronavirus year. The meetings of working groups of different providers were quickly switched to remote meetings. The number of meetings for the Security Manager doubled because of the working groups related to the coronavirus. The year resulted in new kind of thoughts also from the point of view of occupational protection. “All work now includes a hidden aspect known as COVID-19. Through good co-operation we have kept the wheels rolling, and I wish to thank the employees who patiently follow the restrictions”, she says.

The year gave a reminder of how powerless we are when faced with the forces of nature. A microscopically small virus has had a global impact on the everyday life of millions of people. “I hope that we have learned something in case of the possible next pandemic. For example, that things like this should be taken into account in the planning of the new terminal. How can we be pioneers in the development of safe travel?” Pauliina contemplates.

“The coronavirus has caused many negative impacts, but at the same time this period has helped the earth. Air traffic and travelling have decreased drastically, from which we as a port of course suffer due to lack of passengers, but the pollution load on nature decreased momentarily a great deal” Pauliina says.

CORONAVIRUS AFFECTED ALMOST EVERYTHING WE DO


emerging issue is cybersecurity for ensuring of which the Port of Turku has an audited operating programme. The goal is to protect critical systems 24/7.

RISK MANAGEMENT AT A GOOD LEVEL

The Port of Turku’s risk management supports the reaching of the company’s strategic and business goals and ensures the continuity of operations also in changing circumstances. Risk

management starts with identifying different external and internal risks and preparing for them. Identification of risks is based on a systematic method and forms a part of the planning and follow-up of operations. The responsibilities and methods of risk management are determined in the Port’s operations system.

Port of Turku Ltd’s internal control and risk management were developed during 2020, taking into account the scope and structure of the company’s operations. The most significant risks and uncertainty factors and other factors that affect the development of the operations were evaluated in terms of the operations of the Port, and a risk management plan was drawn up based on the mapping.

The most important goals of risk management include ensuring the continuity of vessel traffic in the port and securing the needs of port

The most important goals of risk management include ensuring the continuity of vessel traffic in the port and securing the needs of port operations in the development of the city.

29

operations in the development of the city. Various restrictions on vessel traffic relating to e.g. environmental questions, and the building of new residential areas near the port may have a negative effect on the Port’s operating prerequisites.

From the financial point of view, Port of Turku Ltd’s business operations are stable and the risks are small. The interest rates are expected to remain exceptionally low, and the company has no foreign currency risks. The generation of the result and the realisation of the budget are followed continuously, and any deviations are reported to the Board of Directors monthly during the financial year, and to the City of Turku’s Concern Section and the persons responsible for supervision during the financial year, in accordance with the decision of the City Council.

THE BOARD MANAGES THE COMPANY’S OPERATIONSThe operations of Port of Turku Ltd are managed by the Board of Directors whose duties and responsibilities are determined by virtue of the Limited Liability Companies Act and other applicable legislation. The Board of Directors takes care of the administration of the port enterprise and appropriate organisation of the operations. The Board of Directors processes and decides on all the most significant matters concerning the company’s operations. In 2020, the Board of Directors convened 12 times.

The members of the Board of Directors were Ville Niinistö (Chairman of the Board), Mari-Elina Koivusalo (Deputy Chairman of the Board), and ordinary members Jussi Hakala, Hanna-Liisa Munter, Maria Puhakka-Peltonen, Max Rauvola, and Ville Valkonen.

From left: Mari-Elina Koivusalo (Deputy Chairman of the Board), Ville Valkonen (Board member), Hanna-Liisa Munter (Board member), Ville Niinistö (Chairman of the Board), Pia Bergström (Secretary of the Board), Erik Söderholm (Managing Director of Port of Turku Ltd), Maria Puhakka-Peltonen (Board member), Jussi Hakala (Board member), and Max Rauvola (Board member).


PORT’S FINANCES WERE STABLE

Port of Turku Ltd is a limited liability compa-ny wholly-owned by the City of Turku. The Port Group comprises of parent company Port of Turku Ltd and its subsidiary Turku Free Zone Company Ltd which operates in free zone wa-rehousing and logistics, and specialises in im-ports and exports.

The finances of the Port Group remained stab-le despite the challenging year. The satisfactory result was affected particularly by the increase in cargo transports, enhanced own operations, and high demand for logistics warehousing ser-vices. Strict monitoring and cutting of costs, and the entry of negative consolidation diffe-rence also contributed to the result.

The Port Group’s turnover stood at 24.8 million euros. Consolidated operating profit stood at

INVESTMENTS, million euro

0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2016 2017 2018 2019 2020

2.5 2.5

5.9

3.4

6.4

31

4.6 million euros. The Port Group’s investments totalled 6.7 million euros. Turnover of parent company Port of Turku Ltd decreased by 7.6 per cent on the previous year and stood at 21.9 million euros. The most important investments were the continuing investments related to the NextGen Link, renewal of the CCTV system, re-pairs on the field areas in the passenger har-bour, and the raising and adjustments of the field area in the West Harbour.

A letter of intent on the sale of the crane ope-rations was signed on 31 December 2020 with Turku Stevedoring Oy. Through the sale the Port of Turku aims at enhancing its operations and focusing on its own core business. Accor-ding to the letter of intent, the sale of the busi-ness operations is set to be implemented on 1 March 2021.

The year 2020 was a good one for subsidiary Turku Free Zone Company, although the mar-kets were disturbed by problems with availa-bility of components and closing of factories around the world due to the coronavirus pan-

TURNOVER AND BUSINESS SURPLUS, million euro

demic. The business operations developed favourably throughout the year, especially in warehousing and logistics services. Turnover stood at 2.9 million euros, up by around 10.7 per cent on the previous year.

OUTLOOK FOR 2021 IS UNCERTAIN

In 2021, economic growth is expected to slow down and stand at just over one per cent. The biggest cargo flows in Southwest Finland comp-rise of products of maritime technology, auto-motive industry and machine technology, as well as retail and online trade items. The cargo transports in the Port of Turku are anticipated to follow the development of Finland’s export markets in general. If economic activity dec-reases, it will have a direct effect on the import and export transports of goods.

Passenger traffic is expected to recover after summer 2021 depending on getting the preva-lent pandemic under control. Key issues in the development of the Port’s operations in 2021 are preparing for the arrival of Viking Line’s new vessel at the beginning of 2022 and for the changes required by the planning of the entire passenger harbour area, as well as further de-velopment of own operations. Turku Free Zo-ne Company Ltd’s operations in 2021 will focus on improving the quality and efficiency of basic services.

The finances of the Port Group remained stable despite the challenging year. The satisfactory result was affected particularly by the increase in cargo transports, enhanced own operations, and high demand for logistics warehousing services.

0

5.0

10.0

15.0

20.0

25.0

2016 2017 2018 2019 2020

TURNOVER

BUSINESS SURPLUS


31.12.2020 31.12.2019ASSETSFIXED ASSETSIntangible assets

Intangible rights 340,188.41 303,251.09

Goodwill 6,315,547.27 9,473,320.90

Other intangible assets 1,389,892.34 1,857,074.21

Intangible assets total 8,045,628.02 11,633,646.20Tangible assets

Buildings and structures 20,188,931.10 20,798,016.07

Fixed structures and fixtures 31,601,612.02 33,449,636.37

Machines and equipment 1,297,626.70 1,386,494.02

Advance payments and unfinished purchases 6 444 786.86 1,813,652.01

Tangible assets total 59,532,956.68 57,447,798.47Investments

Receivables from companies in the same group 121,880.00 121,880.00

Investments total 121,880.00 121,880.00FIXED ASSETS TOTAL 67,700,464.70 69,203,324.67

CURRENT ASSETSLong-term receivables

Other receivables 2,500.00 2,500.00

Long-term receivables total 2,500.00 2,500.00Short-term receivables

Sales receivables

Sales receivables from companies in the same group 37,114.76 56,841.11

Sales receivables from elsewhere 3,783,487.56 2,355,214.95

Other receivables

Other receivables from companies in the same group 17,823,685.64 20,254,856.73

Other receivables from elsewhere 391,195.21 77,859.09

Adjusting entries for assets

Adjusting entries for assets from companies in the same group

0.00

Adjusting entries for assets from elsewhere 163,035.79 149,532.61

Short-term receivables total 22,198,518.96 22,894,304.49Cash in hand and at banks 641,696.12 399,354.86CURRENT ASSETS TOTAL 22,842,715.08 23,296,159.35

ASSETS TOTAL 90,543,179.78 92,499,484.02

BALANCE SHEETPORT OF TURKU GROUP

33

PORT OF TURKU GROUP

31.12.2020 31.12.2019SHAREHOLDERS’ EQUITY AND LIABILITIESSHAREHOLDERS’ EQUITYShare capital 100,000.00 100,000.00

Chargeable equity issue

Other reserves Invested unrestricted equity fund 23,241,479.82 23,241,479.82

Profit (-loss) from previous financial periods 4,938,961.92 3,842,798.90

Profit (-loss) for the financial period 704 699.81 1,096,163.02

SHAREHOLDERS’ EQUITY TOTAL 28,985,141.55 28,280,441.74

MINORITY HOLDINGS 923,231.11 1,817,009.73

CONSOLIDATION DIFFERENCE 0.00 0.00

LIABILITIESLong-term liabilities

Loans from financial institutions 1,917,380.00 2,282,600.00

Liabilities to companies in the same group 50,800,000.00 51,800,000.00

Other long-term liabilities 41,868.84 36,807.14

Deferred tax 475,484.15 348,822.91

Non-current liabilities total 53,234,732.99 54,468,230.05

Short-term liabilities

Loans from financial institutions 365,220.00 365,220.00

Accounts payable

To companies in the same group 259,383.69 546,740.97

To others 727,714.70 748,675.07

Other liabilities

To companies in the same group 3,400,000.00 3,400,000.00

To others 1,221,331.41 874,187.48

Adjusting entries for liabilities


To others 930,900.42 1,376,486.30

Short-term liabilities. total 7,400,074.13 7,933,802.50

LIABILITIES TOTAL 60,634,807.12 62,402,032.55

SHAREHOLDERS’ EQUITY AND LIABILITIES TOTAL 90,543,179.78 92,499,484.02

BALANCE SHEET


PORT OF TURKU GROUPPROFIT AND LOSS ACCOUNT

1.1. - 31.12.2020 1.1. - 31.12.2019TURNOVER 24,764,259.94 26,292,547.36Production for own use 131,114.06 63,269.10Other operating income 208,122.12 622,788.01Materials and services

Materials, equipments and goods

Purchases during the financial period -264,107.53 -266,069.15

External services -732,637.50 -1,282,645.11

Materials and services total -996,745.03 -1,548,714.26Personnel costs

Salaries and remunerations -3,857,770.55 -4,083,762.95

Indirect employee costs

Pension expenses -919,165.03 -997,737.36

Other indirect employee costs -100,071.29 -95,644.87

Personnel costs total -4,877,006.87 -5,177,145.18Depreciation and write-downs

Other operating expenses -7,479,328.14 -7,687,877.40

Income from consolidation difference -3,750.00 0.00

Revenue recognition of the consolidated reserve 90,200.30 0.00

Depreciation and write-downs total -7,392,877.84 -7,687,877.40Other operation expenses -7,228,348.62 -7,540,369.64

OPERATION PROFIT (-LOSS) 4,608,517.76 5,024,497.99

Financing income and expenses

Other interest and financial income

From others 6,219.48 5,857.08

Interest costs and other financial expenses

To companies in the same group -3,443,298.73 -3,489,250.21

To others -64,298.30 -63,805.06

Financial income and costs total -3,501,377.55 -3,547,198.19

OPERATING PROFIT (-LOSS) BEFORE APPROPRIATIONS AND TAXES 1,107,140.21 1,477,299.80

Income taxes

Income taxes -204,121.27 -198,900.78

Deferred tax -126,661.24 -135,663.07

Income taxes total -330,782.51 -334,563.85Minority holdings -71,657.89 -46,572.93

PROFIT FOR THE FINANCIAL PERIOD (-LOSS) 704,699.81 1,096,163.02

35

PORT OF TURKU GROUPSTATEMENT OF SOURCE AND APPLICATION OF FUNDS

1.1. - 31.12.2020 1.1. - 31.12.2019CASH FLOW FROM OPERATIONSPayments received from sales 23,322,809.87 25,745,489.99

Payments received from other operating income 208,122.12 622,788.01

Payments for operating expenses -13,595,976.29 -14,664,254.60

Cash flow from operations before financial items and taxes 9,934,955.70 11,704,023.40Paid interest and charges from other financial costs of operations -3,634,565.80 -3,156,055.87

Interest received from operations 6,219.48 5,851.95

Dividend received from operations 0.00 0.00

Direct taxes paid -268,499.48 -123,954.48

Cash flow before extraordinary items 6,038,109.90 8,429,865.00Cash flow from extraordinary items of operations 0.00 0.00

CASH FLOW FROM OPERATIONS (A) 6,038,109.90 8,429,865.00

INVESTMENT CASH FLOWInvestments in tangible and intangible assets -6,809,209.76 -2,742,184.50

Transfer of tangible and intangible assets 0.00 0.00

Investments in other investments 0.00 0.00

Loans granted / repayments 0.00 0.00

INVESTMENT CASH FLOW (B) -6,809,209.76 -2,742,184.50

FINANCIAL CASH FLOWIncrease of equity subject to a charge 0.00 0.00

Return of capital to non-restricted shareholders’ equity 0.00 0.00

Purchase of own shares 0.00 0.00

Sales of own shares 0.00 0.00

Withdrawals of short-term loans 0.00 0.00

Repayments of short-term loans 0.00 0.00

Withdrawals of long-term loans 0.00 0.00

Repayments of long-term loans -1,365,220.00 -1,365,220.00

Dividends paid and other profit distribution -26,035.97 -10,500.27

FINANCIAL CASH FLOW (C) -1,391,255.97 -1,375,720.27

CHANGE IN LIQUID ASSETS (A+B+C), INCREASE (+) / DECREASE (-) -2,162,355.83 4,311,960.23

Financial assets at the beginning of the financial year 20,627,737.59 16,315,777.36

Financial assets at the end of the financial year 18,465,381.76 20,627,737.59


31.12.2020 31.12.2019ASSETSFIXED ASSETSIntangible assets

Intangible rights 18,903.91 19,820.69

Goodwill 6,315,547.27 9,473,320.90

Other intangible assets 1,389,892.34 1,857,074.21

Intangible assets total 7,724,343.52 11,350,215.80Tangible assets

Buildings and structures 14,819,140.05 14,982,137.92

Fixed structures and fixtures 31,601,612.02 33,449,636.37

Machines and equipment 1,081,603.33 1,160,045.08

Advance payments and unfinished purchases 6,444,786.86 1,813,652.01

Tangible assets total 53,947,142.26 51,405,471.38Investments

Holdings in group companies 1,874,184.50 1,045,192.91

Receivables from companies in the same group 121,880.00 121,880.00

Shares in associated companies 0.00 0.00

Investments total 1,996,064.50 1,167,072.91FIXED ASSETS TOTAL 63,667,550.28 63,922,760.09

CURRENT ASSETSShort-term receivables

Sales receivables

Sales receivables from companies in the same group 37,114.76 56,841.11

Sales receivables from elsewhere 3,470,601.90 2,064,825.12

Other receivables

Other receivables from companies in the same group 17,823,685.64 20,228,382.73

Other receivables from elsewhere 391,195.21 77,859.09

Adjusting entries for assets

Adjusting entries for assets from companies in the same group

0.00 26,474.00

Adjusting entries for assets from elsewhere 135,967.59 127,248.50

Short-term receivables total 21,858,565.10 22,581,630.55Cash in hand and at banks 4,972.70 4,392.10CURRENT ASSETS TOTAL 21,863,537.80 22,586,022.65

ASSETS TOTAL 85,531,088.08 86,508,782.74

BALANCE SHEETPORT OF TURKU LTD

37

BALANCE SHEETPORT OF TURKU LTD

31.12.2020 31.12.2019SHAREHOLDERS’ EQUITY AND LIABILITIESSHAREHOLDERS’ EQUITYShare capital 100,000.00 100,000.00 Chargeable equity issue

Other reserves Invested unrestricted equity fund 23,241,479.82 23,241,479.82

Profit (-loss) from previous financial periods 2,897,450.85 2,295,868.98

Profit (-loss) for the financial period -10,728.20 601,581.87

SHAREHOLDERS’ EQUITY TOTAL 26,228,202.47 26,238,930.67

ACCRUED APPROPRIATIONS Depreciation difference 1,812,779.88 1,262,889.54

LIABILITIESLong-term liabilities

Liabilities to companies in the same group 50,800,000.00 51,800,000.00

Other long-term liabilities 41,868.84 36,807.14

Non-current liabilities total 50,841,868.84 51,836,807.14

Short-term liabilities

Accounts payable


To others 612,896.17 558,587.89

Other liabilities

To companies in the same group 3,400,000.00 3,400,000.00

To others 1,100,179.07 781,800.75

Adjusting entries for liabilities


To others 780,254.05 1,270,941.20

Short-term liabilities. total 6,648,236.89 7,170,155.39LIABILITIES TOTAL 57,490,105.73 59,006,962.53

SHAREHOLDERS’ EQUITY AND LIABILITIES TOTAL 85,531,088.08 86,508,782.74


PORT OF TURKU LTDPROFIT AND LOSS ACCOUNT

1.1. - 31.12.2020 1.1. - 31.12.2019TURNOVER 21,901,120.06 23,707,127.32Production for own use 131,114.06 63,269.10Other operating income 205,925.14 629,836.34Materials and services

Materials, equipments and goods

Purchases during the financial period -185,059.02 -240,847.72

External services -685,664.41 -1,252,,579.72

Materials and services total -870,723.43 -1,457,427.44Personnel costs

Salaries and remunerations -3,156,418.09 -3,387,599.11

Indirect employee costs

Pension expenses -801,043.96 -859,828.99

Other indirect employee costs -75,220.81 -74,517.09

Personnel costs total -4,032,682.86 -4,321,945.19Depreciation and write-downs

Other operating expenses -6,848,562.80 -7,057,428.11

Reduction of value from non-current assets -3,750.00 0.00

Depreciation and write-downs total -6,852,312.80 -7,057,428.11Other operation expenses -6,423,537.34 -6,719,225.65

OPERATION PROFIT (-LOSS) 4,058,902.83 4,844,206.37

Financing income and expenses

Income from holdings in group companies 73,755.38 11,917.84

Income from holdings in participating interests

Other interest and financial income 6,117.38 5,851.95

From others

Interest costs and other financial expenses -3,443,298.73 -3,489,250.21

To companies in the same group -6,209.97 -5,208.39

To others -3,369,635.94 -3,476,688.81Financial income and costs totalOPERATING PROFIT (-LOSS) BEFORE APPROPRIATIONS AND TAXES 689,266.89 1,367,517.56

Appropriations

Increase (-) or decrease (+) in depreciation difference -549,890.34 -567,034.91

Appropriations total -549,890.34 -567,034.91Income taxes

Income taxes -150,104.75 -198,900.78

Income taxes total -150,104.75 -198,900.78

PROFIT (-LOSS) FOR THE FINANCIAL PERIOD -10,728.20 601,581.87

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PORT OF TURKU LTDSTATEMENT OF SOURCE AND APPLICATION OF FUNDS

1.1. - 31.12.2020 1.1. - 31.12.2019CASH FLOW FROM OPERATIONSPayments received from sales 20,482,165.82 23,323,902.25

Payments received from other operating income 205,925.14 629,836.34

Payments for operating expenses -11,730,000.27 -13,073,595.20

Cash flow from operations before financial items and taxes 8,958,090.69 10,880,143.39

Paid interest and charges from other financial costs of operations -3,576,477.47 -3,097,464.33

Interest received from operations 6,117.38 5,851.95

Dividend received from operations 73,755.38 11,917.84

Direct taxes paid -268,499.48 -123,954.48

Cash flow before extraordinary items 5,192,986.50 7,676,494.37Cash flow from extraordinary items of operations 0.00 0.00

CASH FLOW FROM OPERATIONS (A) 5,192,986.50 7,676,494.37

INVESTMENT CASH FLOWInvestments in tangible and intangible assets -6,597,102.99 -2,315,489.38

Transfer of tangible and intangible assets 0.00 0.00

Investments in other investments 0.00 0.00

Loans granted / repayments 0.00 0.00

INVESTMENT CASH FLOW (B) -6,597,102.99 -2,315,489.38

FINANCIAL CASH FLOWIncrease of equity subject to a charge 0.00 0.00

Return of capital to non-restricted shareholders’ equity 0.00 0.00

Purchase of own shares 0.00 0.00

Sales of own shares 0.00 0.00

Withdrawals of short-term loans 0.00 0.00

Repayments of short-term loans 0.00 0.00

Withdrawals of long-term loans 0.00 0.00

Repayments of long-term loans -1,000,000.00 -1,000,000.00

Dividends paid and other profit distribution 0.00 0.00

FINANCIAL CASH FLOW (C) -1,000,000.00 -1,000,000.00

CHANGE IN LIQUID ASSETS (A+B+C), INCREASE (+) / DECREASE (-) -2,404,116.49 4,361,004.99

Financial assets at the beginning of the financial year 20,232,774.83 15,871,769.84

Financial assets at the end of the financial year 17,828,658.34 20,232,774.83

Port of Turku LtdJuhana Herttuan puistokatu 21

FI-20100 [email protected]

www.portofturku.fi

annual report port of turku 2020

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