Satisfactory financial performance in the second year of pandemic

Port of Turku Ltd is a limited liability company wholly owned by the City of Turku. The company operates in maintenance of the port infrastructure and other service and rental business related thereto. The Port of Turku Group comprises of parent company Port of Turku Ltd and its subsidiary Turku Free Zone Company Ltd. Turku Free Zone Company Ltd is a warehousing and logistics company that specialises in imports and exports with customs warehouse 1 status in its entire area. The company operates in free zone storage and warehouse logistics.

Annual report

The Port Group’s turnover for 2021 stood at 24.8 million euros, and operating profit amounted to 3.5 million euros. Consolidated result for the financial year stood at 2.2 million euros. Turnover of parent company Port of Turku Ltd totalled 22.0 million euros, slightly up on the previous year. Turnover of subsidiary Turku Free Zone Company Ltd was almost at the previous year’s level at 2.8 million euros.

The satisfactory financial performance of the pandemic year benefited from the cargo transport volume remaining at a high level, positive demand for logistics warehouse services, and smaller financial expenses. The Port Group’s investments for 2021 totalled around 4.3 million euros. The most important investments were the completion of investments related to the NextGen Link, and the raising and adjustments of the field area in the West Harbour. Furthermore, the sale of the crane operations to Turku Stevedoring Oy was finalised in 2021.

Varying expectations for 2022

The outlook for the global economy in 2022 was favourable at the beginning of the year, but the rapidly deteriorating situation in Ukraine in February overshadowed the development outlook. It is currently difficult to assess the duration and effects of the crisis, but the immediate effects on the operations of the Port of Turku are likely to remain small. As a concrete effect on the operations of the Port of Turku, the rapidly increasing number of bookings for cruise ship calls has been observed as Russian ports have been stayed aside from cruise ship routes. The volume of cargo transports is expected to remain at a good level of 2.4 million tonnes, as there are no signs of recession in foreign trade. Passenger traffic is expected to increase considerably as the coronavirus pandemic is dying down. The passenger volume on the route between Turku and Stockholm is anticipated to increase by about one million people. The Ferry Terminal Turku project has started out as planned, and the goal for completion is set at December 2025. As part of the project, new operating agreements were signed with Viking Line and Tallink Silja in August 2021.

Turku Free Zone Company Ltd is expected to continue its strong growth in the current economic conditions in 2022. A special focus lies in sustainable development business, such as logistics solutions for the battery industry. The company is prepared to continue to invest in new warehouse space, also in co-operation with the Port of Turku.

In addition to the crisis in Ukraine, the biggest uncertainty in the global economy is related to the availability of raw materials and components for industry. Inflation is expected to accelerate, and central banks are anticipated to raise the interest rates at some point during the year.

Read the full annual report 2021 (pdf).

Text: Kari Ahonen