We welcome you to get to know Nurminen Logistics’s year 2013. It was a difficult year, and we failed to reach our turnover and profit targets. However, the year also included many moments of success. After considerable structural changes and measures improving efficiency, Nurminen Logistics sets off into year 2014 as a significantly more competitive company.
EUR million. The net sales in 2012 totalled EUR 78,4 million
EUR million. The operating profit in 2012 totalled EUR 5,4 million.
EBIT, % of net sales in 2012 6,9 %.
The equity ratio in 2012 was 42,7 %.
The number of personnel in 2012 was 341.
Finland 74,8 %, Baltic countries 12,6 %, Russia 12,6 %
President and CEO Olli Pohjanvirta, how was the year 2013 for Nurminen Logistics?
The company’s financial development was not satisfactory. We fell short of our objectives in terms of both net sales and operating result. Our operating result excluding non-recurring items amounted to EUR 1.6 million, compared to EUR 5.6 million in 2012.
The market situation apparently was not the easiest one for a logistics company?
The general economic gloominess continued in the Finnish market, which was naturally also reflected in our operations. In addition, our growth in the internal markets of Russia and its neighbouring countries was lower than expected. Nevertheless, we are among the three largest companies in almost all of our service segments in Finland, such as forwarding, and we are the market leader in covered wagons in rail transport between Finland and Russia.
How did Nurminen react to the soft development?
In 2013, we carried out considerable restructuring of operations and improved the efficiency of our operations to better match the prevailing situation. Among other things, this meant the development of the processes at the Vuosaari terminal, closing down our Vainikkala terminal, trimming personnel expenses and also reforms in the senior management of the company. I am certain that we are heading into 2014 as a considerably more competitive company.
Did anything positive happen at Nurminen Logistics during the past year?
A lot. We achieved pleasing successes in project transport services related to major industrial investments. In railway transport deliveries, we secured new customers in Russia towards the end of the year. In Finland, our market share remained unchanged in spite of the challenging conditions. In addition, the satisfaction of our customers with our services remained high, which shows that our employees are committed and exceptionally skilled.
What makes your company a success?
Due to structural changes and efficiency improvement measures carried out last year, we are well prepared for better profitability. Our strategy will not change, but the rate at which we implement it will. This year, we aim to increase the number of our own wagons registered in Russia. We will also invest in our Russian organisation with the aim of securing new significant customer accounts. We will increase our special transport and project business. We will develop our partner network in the key markets. Our success in the international market will guarantee competitive service to our Finnish customers as well.
What is Nurminen Logistics’ outlook for 2014?
The company’s net sales will increase and operating profit will improve. We have been the only foreign railway operator in Russia since 2001. We know the local logistics market and society well. We expect considerable growth in the internal railway market in Russia and the CIS countries as well as international project transports. We will achieve results through our own activity – regardless of the tight market situation.
I would like to thank our personnel, customers, partners and others in our network for their smooth cooperation and commitment. Together we are heading towards a more efficient future in logistics.
as a considerably more competitive company"
President and CEO
Delivery of pulp mill equipment to Belarus
Nurminen Logistics carries out the overall machinery delivery to Svetlogorsk, Belarus, for the pulp mill of the mechanical engineering group Andritz. The project delivery consists of more than 450 loads, approximately one third of which are special transports. In addition to transport, Nurminen Logistics handles the overall management of the project’s transport logistics. The project’s consignments are loaded in approximately 30 locations around the world. Transports will continue until mid-2014.
Nurminen Logistics to become the largest paper and cardboard handler in the Port of Helsinki
Pulp and paper company Sappi consolidated all of its shipping through the Port of Helsinki to Nurminen Logistics. In addition, Nurminen signed an extension contract with Metsä Board for handling considerable amounts of cardboard in Helsinki. The paper and cardboard handling volume in the Vuosaari Harbour will be some 350,000 tonnes per year, equivalent to approximately 31,000 (TEU) containers.
Significant new accounts in Russia
In 2013, Nurminen signed a contract with four large Russian companies in the chemical industry and one significant Russian construction industry business for the transport of their products in covered wagons inside Russia and other CIS countries. Nurminen operates approximately 200 covered wagons for these customers with long-term customer contracts. In addition to this, the company operates a significant number of other wagon types in Russia’s internal traffic with long-term contracts and covered wagons with shorter contracts.
loads one third of which are special transports
thousand tonnes of paper and cardboard through the Vuosaari terminal
new significant accounts in the internal traffic of Russia and CIS countries
Nurminen Logistics’ vision is to be the most reliable and high-quality provider of rail transport and a significant provider of logistics project transport services and solutions in Russia, its neighbouring countries and Finland. The strategy of Nurminen Logistics is to grow in the developing transport markets of Russia and its neighbouring countries both organically and through investments and acquisitions. The company’s extensive experience in the Russian logistics market and own modern fleet of rolling stock play a key role in the implementation of this strategy. Further competitive advantages include the company’s cost-effective, high-quality and flexible transport services that meet Western standards. In all its market areas, Nurminen Logistics offers comprehensive logistics solutions that create added value for the customer in the form of time and cost savings.
Develop and improve – for the benefit of the customer
Trust and be trustworthy
Entrepreneurship means responsibility
High service quality, reliability and flexibility
Strong expertise in logistics between Finland and Russia and within Russia
Customer service on par with Westetn standards
Modern, company-owned fleet and wide partner network
New, significant accounts in Russia
Growth through selected acquisitions and projects
To be the most reliable and high-quality provider of rail transport and a significant provider of logistic project services and solutions in Russia, its neighbouring countries and Finland
Russia's growing economy
Global production of goods
Energy efficiency and responsibility for the environment
Outsourcing of logistics services
Master Degrees in Science and Economics
Chairman of the Board since 2013, Member of the Board since 2010
Independent of the company and significant shareholders
Member of the Board since 2011
Independent of the company and dependent of the significant shareholders
M.Sc. (Econ. & Bus. Adm.)
Member of the Board since 1971*, Chairman of the Board in 1997*–2010
Independent on the company and dependent of the significant shareholders
Managing Director of John Nurminen Events B.V.
Member of the Board since 2009 (deputy member of the Board in 2008)
First Vice President of FESCO Transportation Group
Member of the Board since 2013
Executive Board of Nurminen Logistics:
Fedor Larionov, Senior Vice President Marko Tuunainen, Senior Vice President Hannu Vuorinen, Senior Vice PresidentOlli Pohjanvirta, President and CEO Paula Kupiainen, CFO
Read more about members of the Executive Board
Satamakaari 2400980 Helsinki, Finland
Tel. +358 10 545 00
Fax. +358 10 545 2000
Business ID: 0109707-8