Metsä Fibre has developed its logistics and cut emissions across its whole supply chain.
Metsä Fibre looks forward to cutting logistics emissions by 30% per tonne-kilometre by 2030 from the 2022 level. The target is part of the climate work from Metsä Group and steers everyday decisions right from transport modes to partnerships.
According to Director, Customer Service at Metsä Fibre, Erja Karjalainen, “Reducing logistics emissions is a key way for us to lower the climate impact of our operations. At the same time, we improve whole supply chain efficiency and respond to our customers’ growing sustainability expectations.”
They work closely with logistics, sales, and customers in order to maximise transport solutions.
Karjalainen adds, “In practical terms, this means, for example, transporting full units, favouring rail transport and other lower-emission transport modes, and avoiding unnecessary journeys.”
A warehouse network minimises requirements for road transport
The primary goal is to increase the proportion of rail transport. The fact is that where the route and delivery schedule allow, rail transport is preferred over road transport.
Karjalainen says that “emissions from rail transport per thousand kilometres are significantly lower than those from road transport, so the impact on overall emissions is substantial. This is particularly important in domestic logistics within Finland and in the transport of finished pulp from mills to ports.”
The warehouse network also cuts down on emissions. Metsä Fibre has a customer-focused network when it comes to port terminals and warehouses all over the world, which reduces the final delivery leg.
“For example, in Europe, delivery from a local port warehouse significantly reduces the need for road transport compared with delivering all the way from Finland by lorry,” Karjalainen illustrates.
Logistics emissions are tracked on a regular basis and include emissions per mode of transport, route & supplier as well as emission intensity per tonne kilometre.
As per Karjalainen, “The better we understand the emission impacts, the more effectively we can steer everyday decisions.”
Collaborating with VR to cut emissions in half
Cutting logistics emissions calls for partnerships.
Says VP, Logistics, Metsä Group, Veli-Matti Passinen, “Long-term cooperation with selected partners delivers better results than working alone.”
Metsä Group works pretty closely with VR, the Finnish railway operator, so as to reduce transport emissions by half by 2030. Practical measures involve the optimization of train designs, the maximisation of the usage of electric trains and bio-based fuels as well as the further promotion when it comes to the electrification of the rail network in collaboration with authorities.
Remarks, Passinen,”Electrifying the rail network is a goal that no single operator can achieve alone, but through cooperation we have been able to make progress. For example, pulp transports from our Äänekoski bioproduct mill to the Port of Vuosaari are carried entirely by electric trains.”
The collaboration with VR is estimated to lead to emission reductions of almost 14,000 tCO2e per year, which is roughly equivalent to over 25,000 lorry transports.
Maritime transport: Focus on efficiency, fuel
Maritime transport happens to be an important factor, as almost 90% of logistics emissions of Metsä Fibre come from maritime shipping. The collaboration with the Dutch shipping company Royal Wagenborg is aimed at technical enhancements to the fleet, development in terms of new vessel types, the optimization of cargoes as well as routes and lowering fuel consumption.
There are many developments in maritime transport today that promote emission reductions. EU regulations and blending requirements for biofuels are indeed driving development. At the same time, customer expectations for sustainability as well as emission reductions in their own supply chains are rising, says Passinen.
Combined shipments increase utilisation rates
Operational measures are already making an impact. Royal Wagenborg transport has lowered emissions by close to 18% in the past two years. Together with the shipping company, they have been able to optimise consumption of fuel, for instance, by not always travelling at full speed to a port and then waiting. The speed is then altered to the timetable so that the ship arrives exactly on time to initiate loading or unloading.
The utilisation rate of cargo capacity has improved as a result of joint shipments of various Metsä Group products. In practice this means that they also ship, for instance, paperboard or Kerto® LVL products along with pulp, and that too in the same vessel.
Passinen expects that the regulatory framework will be used more for alternative fuels. Their significance will increase as availability as well as ease of use improve.
Improved efficiency from rerouting in the United States
Metsä Fibre has additionally established logistics in the US, especially in the Great Lakes area. The company operates multiple ports in the US, including Green Bay, which was recently added to the existing ports. Previously, some pulp shipments arrived at the Port of Baltimore and were then transported on by road. Now the shipments go through Green Bay.
Passinen says, “We started using this route in 2024, and it has proved effective. We also have local product warehouses that help ensure reliable, up-to-date and fast deliveries to our customers. At the same time, we have been able to reduce emissions and improve our service capability.”
Sustainability all the way to the consumer
Reducing emissions in logistics is more than just an environmental issue. It also affects delivery quality and dependability of partnerships, says Passinen.
He stresses that “Customers receive environmentally friendly products with an even smaller carbon footprint. At the same time, efficiency and service capability improve. Generally, a company that operates responsibly is also a reliable and efficient partner in other respects.”
