The goal of Nurminen Logistics is to be the most reliable and highest-quality logistics operator in our chosen business segments and areas. The strategy of Nurminen Logistics is to grow both organically and through investments and acquisitions. Key factors in this are our extensive experience in logistics markets both at home and internationally, a high-quality and multi-faceted range of services in central locations and near to existing product streams, and a comprehensive, sufficient, and cost-efficient service value chain that meets our customers’ needs.
The Board of Directors has updated the Nurminen Logistics’ long-term financial objectives to reflect the market environment and the company’s current level of business activities. The objectives of the company are to achieve a growth rate that is higher than that of the markets in general, a net operating profit level of 7% and a return on equity of 12%.
Strategic objectives for 2020
- Growth through selected acquisitions and projects
- focused investments and acquisitions in growing markets and segments
- developing service concepts that create synergies for the company, and added value for customers
- expanded logistics service offering by lengthening the value chain
- Improving profitability
- internationalisation and growing profitable business operations
- developing operational productivity and efficiency
- growth of the value chain and development of value-added services
- Development of rail logistics services
- rail logistics to serve industrial procurement and product streams
- international rail logistics
- rail logistics produced for local services
Long-term financial objectives
- Growth: Growing at a faster rate than the market.
- Profitability: The company will improve its profitability, reaching an operating profit margin of 7% and return on equity of 12%.
Implementation ot the strategy in 2017
In 2017, Nurminen Logistics concentrated on developing its financing structure by organising a rights offering for shareholders in June–July. The goals of the capital arrangements were realised: the company received assets to advance projects according to the strategy, the company’s balance sheet improved and the debt structure was reduced. In 2017, Nurminen Logistics determinedly furthered its plan to open a train connection to China, developed the operations of NR Rail Oy and managed to improve its profitability.
Improving the profitability of operations
In 2017, Nurminen Logistics managed to improve the profitability of nearly all of its operations. The company’s operating result increased 278.4% compared to the previous year to EUR 1.7 million. The profitability of forwarding and terminal services, railway logistics in Finland and the Baltic companies increased from the previous year. The profitability of the terminal business increased clearly, mainly due to the increase in the flow of goods in the export and import trade at the terminals. The positive development was clearly visible at the Vuosaari location in forest, steel and engineering industries and in the increased demand for e-commerce logistic services. The increased profitability of the forwarding services and railway logistics in Finland resulted from the measures to improve efficiency. The operating result of the Baltic companies was improved due to the strong net sales growth.
Opening a train connection to China
The leading project in the railway logistics service development is the creation of a reliable and quick container train connection for Finnish import products to China. The first big step towards this goal was taken last November when Nurminen arranged a block train shipment from Finland to China. The goods were transported from Niirala to Central China in just 12 days. At the same time, the company launched a project to open a weekly train connection from the Port of Helsinki to China. The company’s clientele will consist of the export industry in Finland and international forwarding companies. In addition to railway transports, container collection and delivery transports from the destination in China to all around China by road will be offered to clients.
Developing NR Rail Oy’s operations
In 2017, NR Rail continued to analyse rail transport markets according to its strategy and achieved reliable service provider status among its clientele, although investments in the railway locomotive equipment are not yet complete. NR Rail Oy is continuing the negotiations into further co-operation with a specifically identified client group and is looking into the possibilities of offering a wider entity in the logistics chain. The co-operation between Nurminen Logistics and the Russian Rustranscom was underpinned by international railway transport agreement that was ratified between Finland and Russia in 2016. According to the plans, the core service of NR Rail Oy will cover the border traffic locomotive transports of the forest and chemical industries through the border crossing points at Niirala, Imatra and Vainikkala in Finland.