MG to participate in the traffic route investments were going to be examined as the point of departure in all such industrial political investments is for the companies to take on the part of the development costs. °In February 2015, the Finnish government “earmarked” EUR 138 million for the road and rail improvements in its budget. Later even more money was granted so that as of August 2016 the total sum amounted to EUR 168 million. The main projects covered by the appropriations are the electrification of the railroad and the improvement of the Finnish national road number 4 between Jyväskylä and Äänekoski. EFFECTS ON LOGISTICS AND TRANSPORTATION MG’s investment will increase the use of pulpwood in Finland by 10%. This means that the amount of wood transported on roads and by rail will increase. °To be able to transport more wood with fewer vehicles, which would benefit both the road network and the environment, MG’s transport contractor received a testing licence from the Finnish Transport Safety Agency (Trafi) for a high capacity transport (HCT) vehicle. HCT-vehicles exceed the present maximum size (both in length and tons) allowed on Finnish roads. The licence contains an obligation to report to Trafi about the experiences with the vehicle. The purpose of the testing licence is to develop the efficiency and economics of the wood supply logics. The increased demand for wood in Äänekoski will also affect the directions of wood flows in Finland. °Wood flows from North Ostrobothnia, which have traditionally gone to Kemi, will now be increasingly directed to Äänekoski. This will, in turn, increase the wood flow from Lapland to Kemi. Likewise, the wood flows from South Ostrobothnia, which have traditionally served Rauma, will also be increasingly directed to Äänekoski. °These new wood transport routes will very likely force the Finnish government to appropriate budget money also for the improvement of traverse road connections and low volume road network in Central Finland in the near future.
7 The mill will produce 800,000 tons of pulp for foreign markets each year, thus also increasing the amount of pulp exported from Finland. °MG has chosen Vuosaari Harbor of the Port of Helsinki (owned by the city of Helsinki) as its export harbour through which pulp will be shipped to the world. °A 30,000 square meter terminal will be constructed at the harbor to serve as the mill’s export product storage. °The CEO of the Port of Helsinki estimated that the extra 800,000 tons of pulp could mean 100 new jobs in the Port’s logistics chain and an increase of 10% in the Vuosaari harbor traffic with 35 daily railroad wagons coming in. EFFECTS OF THE GOVERNMENT POLICY ON THE INVESTMENT AND OF THE INVESTMENT ON THE GOVERNMENT POLICY In addition to the direct investment subsidy and the money allocated for the development of the infrastructure in the federal budget as well as the speeded-up authority procedures, the Finnish
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- Fall '17
- Management, VTT Technical Research Centre of Finland, Otaniemi, Central Finland, History of Finland