Foreword 308:Layout 1 19/5/08 11:08 Page 1
FOREWORD
Optimistic
outlook for
Finnish
Henri Kuitunen
President and CEO,
VR-Group Ltd
railways
Today, the distinctive features of VR for VR, since the Finnish State owns all of Freight traffic between Finland and
include its operation as a group of VR’s shares. Russia is of great importance for VR.
companies, its growing popularity of In 2007, VR Group had a net turnover Thanks to having the same rail gauge
passenger services, its significant market of €1.3 billion and employed 12,500 and long-term cooperation, traffic to and
share of freight traffic, and its success people. The group transported a record from Russia accounts for 40% of VR
in track construction. However, much 66.7 million rail passengers and carried 40 Cargo’s carryings.
has taken place before VR has reached million tonnes of freight. Eastward-bound services faced many
this point. Finland has a rail network of 5,800 challenges during 2007. Higher timber
Rail services began in Finland in 1862. kilometres of track. Some 90% of the track tariffs resulted in a one-third reduction in
However, the most significant of the network is single track, which is an timber imports to Finland. Container traffic
changes during this long history took place extremely important factor in managing on the Siberian railway, which had slowed
fairly recently. Finnish State Railways (VR), rail traffic. down significantly, also failed to pick up.
a state owned public enterprise, was Transit traffic from Russia via Finland to
incorporated in 1995 and became the VR Cargo’s strong position third countries declined.
VR Group. VR Cargo, which provides rail freight Fortunately for VR, there are many
The functions of providing rail services services, has a major role in serving the positive elements in future prospects for
and managing the rail infrastructure were Finnish industry. The railways are traffic to and from Russia. The regular rail
separated from each other at that time. particularly important for the forest, metal container service that started from Finland
Responsibility for the rail network was and chemical industries. to Moscow gave a real boost to this traffic.
transferred to the Finnish Rail VR Cargo has a 27% share of all the Transport by rail of new cars to Russia
Administration, a civil service department, freight carryings in Finland, a much higher offers many opportunities. It is estimated
and the link between VR, which provides figure than the average in Europe. The that a million cars will be imported to
transport services, and the Finnish state reasons behind this success are a customer- Finland’s ports this year. Only a small
budget was virtually removed. In 2006 a focused approach, creativity, long distances, percentage of these are conveyed over the
further change took place, when safety in and the location of the production plants of border by rail, but VR has the goal of
the entire railway system became the the Finnish industry and of raw material winning a third of this market.
responsibility of the Finnish Rail Agency. sources. VR Group also transports freight by
The Finnish Rail Administration and Rail freight traffic has a distinctive road. Thanks to the Transpoint company, a
the Finnish Rail Agency are government customer structure. More than 80% of package of complementary rail and road
departments subordinate to the Ministry freight carryings come from 18 customers. services is readily available to customers in
of Transport and Communications. This means that when developing services Finland. Transpoint is also VR Group’s
The Ownership Steering Department in and planning marketing, these have to be instrument in the international expansion
the Prime Minister’s Office is responsible precisely tailored for individual companies. of freight services.
www.europeanrailwayreview.com EUROPEAN RAILWAY REVIEW
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