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International transport corridors in Northern Finland

Regional Councilof Lapland

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Background

Northern Finland has several different transport and traffic corridors, the development of which is promoted by numerous parties

• Resources are spent on partly overlapping undertakings

• The same corridor receives parallel promotion under different names

• This conveys a vague image of the needs and opportunities of the corridors

• With each party advocating only for the development of its own traffic corridors, the likelihood of resource allocation to corridor development decreases

Need for cooperation and shared vision

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Aims of the project

The most important aim is for the operators in Northern Finland to arrive at a shared vision of the region’s international traffic corridors and the names of these

To compile information on the traffic corridors

To enable the prioritization of corridors

To formulate a consistent view of the corridors

Aims

Regional plans

Studies

Plans

Interviews with business and the authorities

Material

International traffic corridors in Northern Finland

Overall view of the international traffic corridors in Northern Finland

Views on and reasoning for prioritization of corridors

Programming of further efforts

Agreement on the commencement of lobbying and the preparation of lobbying materials

Outcomes

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Steering group

Regional Council of Northern Ostrobothnia, chair Regional Council of Lapland Joint Authority of Kainuu Region Regional Council of Central Ostrobothnia Oulu road district Lapland road district Finnish Rail Administration (RHK) MINTC Oulu Chamber of Commerce Ostrobothnia Chamber of Commerce Lapland Chamber of Commerce Port of Oulu / ports in the Bothnian Bay Finavia

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Northern Finland and the Barents region

Northern Finland Finland Barents region

Population 722,800 5,300,500 5,600,000 (in 2005)

Area 165,800 km2 335,420 km2 1,755,800 km2

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Traffic and transportation on main roads

Source: Finnra

Average daily traffic 2006 (vehicles par day)

Heavy goods transport

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Goods and passenger streams in rail traffic

Source: RHK

Kouvola local region

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Sea and air traffic

Sea traffic There are six important cargo ports in Northern Finland Much regular international scheduled traffic Based mainly on industry’s heavy streams of goods Foreign sea cargo handled by the ports in Northern Finland totalled 16.8

million tonnes in 2007 (= 16% of all sea cargo between Finland and foreign countries)

Air traffic There is scheduled service to nine airports in Northern Finland Most international service is operated via Helsinki International Airport Oulu−Riga and in autumn, Stockholm−Kittilä Numerous tourism-related charter flights Air cargo operations

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Future outlook

Metal industry Important industry in Finland, Sweden and the Murmansk region The future outlook is bright due to e.g. the development of the

Barents region: Outokumpu, for example, will invest hundreds of millions of euro in the near future

Forest industry Important industry in Finland, Sweden and Russia except for the

Murmansk region Russian wood duties, restructuring in the forest industry and

climate change give rise to uncertainty, yet the industry will retain its strong position also in the future

Bioenergy utilization opens up new possibilities for the industry

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Future outlook

Tourism Important industry in Finland, Sweden and Norway Considerable increase expected in the number of foreign tourists Substantial investments being planned in Northern Finland

Oil and gas industry Important industry in Norway and Russia Some of the world’s largest natural gas and oil fields are located

in the Barents region, e.g. Shtokman ja Snøhvit The focus is shifting from the Norwegian Sea to the Barents Sea

Murmansk region The region will seen intense development in the near future Planned investments (excl. investments in the oil and gas

industry) > EUR 20 billion

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Mining industry

Source: MEE

Important industry in Sweden, Russia and also Finland

The Barents region has vast mineral resources

The many mine projects being planned in Northern Finland will increase transportation volumes many times over when implemented.

Opening new mines requires improvement of the existing infrastructure

Talvivaara deliveries via the Kokkola port and potential Pajala-Kolari (initial stage) deliveries via the Kemi port

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Barents Arc – international traffic corridors in Northern Finland

The Barents Arc is made up of several linked traffic corridors Barents Link Murmansk Link Bothnian Link Narvik Link

A natural complement to the whole consisting of the EU Northern Axis – Motorway of the Baltic Sea

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Bothnian Link

Finland’s main line – connects the Northern Axis with the Northern Triangle

Most important sources of traffic growth potential

Growth in industry and other businesses in Western and Northern Finland

New mine projects in Northern Finland and Northern Sweden

Russian transit traffic Increase in rail passenger

volumes Development of the corridor will

enable growth for the region’s industry and other businesses

Barents Arc

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Barents / Narvik Link

Part of the Northern Axis corridor defined by the EU on 31 January 2007

Connects the Nordic countries to northwest Russia and onward to the Far East

Major sources of traffic growth potential

Russian transit traffic In the long run, increase in

cargo traffic between Asia, Europe and North America

Development of the corridor boosts the potential for trade between the Nordic countries and Russia

Barents Arc

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Murmansk Link

Connects northwest Russia to the Nordic countries and is a natural extension of the Motorway of the Baltic Sea

Major sources of traffic growth potential

Intense development in southwest Russia

New mine projects in eastern Lapland

Opening of the Northeast Passage

Development of the corridor enhances the potential for Nordic operators to participate in the major projects in southwest Russia

Barents Arc

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Motorways of the Baltic Sea

Connects the Nordic countries to Central and Western Europe

80% of Finland’s foreign trade via the corridor

Major sources of traffic growth potential

New mine projects in Northern Finland and Northern Sweden

Development of industry and other businesses

Strong growth in the Russian economy and cargo transportation (transit traffic)

Development of sea connections improves the functioning and cost-effectiveness of multimodal transportation chains

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Air corridors in Northern Finland

Fast and efficient air service meeting the needs of business and tourism in the Barents region is key

Major sources of traffic growth potential Sharply rising numbers of tourists Development and internationalization of the economy of the Barents

region Development of charter flights and increase in direct, regular service

sought Transverse service in the Barents region Moscow and St Petersburg Stockholm and Copenhagen

Enhanced air service can compensate for long distances and also respond to the needs of increasing tourism and the developing Barents region

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Future challenges and opportunities

Opportunities in Northern Finland New mine projects Development of industry and other businesses Intense development in the region of northwest Russia Increase in tourism Opening of the Northeast Passage

Challenges in Northern Finland Availability of skilled labour Development of infrastructure Development of cooperation Climate change

The main goal for the near future is to make the Barents Arc or parts of it an EU TEN-T priority project and to continue developing cooperation in the Barents region