Ships operated under long-term charters have accounted for much of Holmen's transport activity for several years. Capacity utilisation on the ships is high. Rail is mainly used for distributing products from Sweden to southern parts of Europe and to a certain extent also for incoming raw materials. Trucks are the main mode of transport for saw logs and pulpwood. Trucks are also generally the only option for transporting products from the port terminals in Europe to customers. The same also applies to distribution over short distances from mills to customers.
Efforts to reduce the transport impact
Holmen Skog has long been taking active measures to minimise transport activity by flow optimisation and the exchange of wood with other forest companies. Modern optimisation tools are used in planning, resulting in shorter transport distances and investigation of environmentally efficient and cost-effective transport combinations.
Holmen Skog works in partnership with the rest of the forest industry on technical developments that make forestry more efficient and reduce emissions of carbon dioxide. Studies into longer timber trucks and increased loads show that emissions can be cut by around 20 per cent. Holmen Skog is involved in the national ETT (One More Pile) demo project aimed at testing heavier timber trucks in real-life operational circumstances. The project aims to reduce the number of transport runs, cut diesel consumption and reduce emissions of fossil carbon dioxide. An additional aim is to reduce transport costs.
Work aimed at increasing loads continued in 2016, assisted by the increase in the gross weight of trucks to 64 tonnes (previously 60 tonnes). In 2016, the Government also gave clear signals that 74-tonne trucks would be introduced in 2017, representing a great advance for the forestry industry. The initial road network for 74-tonne trucks proposed by the Swedish Transport Administration is, however, very limited. Holmen is consequently unable to benefit for the first few years, until a larger road network is opened. In 2016, Holmen Skog started to monitor fossil carbon dioxide emissions in line with the new environmental objective. Emissions have fallen by around 5 per cent over the period 2014-2016 as a result of a higher blend of renewable fuels (principally HVO).
Holmen Skog is working to switch the transport of logs from road to rail, and intends to do so where this is possible and cost-effective.
The Group's travel policy includes environmental aspects of travel with the aim of reducing the extent of travel and consequently its environmental impact.
Holmen is taking part in industrywide efforts to reduce the impact of transport on climate. The target is to reduce fossil carbon dioxide emissions from transport by 20 per cent by 2020 (base year 2007). The policy of the Swedish industry federation on transport and sustainability has been applicable since 2010. In addition to this, there are joint sustainability criteria developed for the industry that can be used in procuring truck transport services.
Transport Review 2016
The extent of Holmen's transport activity in 2015 and the associated emissions of fossil carbon dioxide were calculated in 2016. The aim of the investigation was to survey fossil carbon dioxide emissions, which each producing unit within the Group, gives rise to in transportation within Europe of finished products to customers as well as in inward deliveries of wood, pulp, recovered paper and chemicals. Europe is understood here to mean EU27, according to the method description of the industry organisation the Swedish Forestry Industries Federation for the calculation of emissions in Swedish forestry industry.
Total transport activity amounted to around 4 billion tonne-km, split across modes of transport as follows: rail 9 per cent, road 46 per cent and sea 45 per cent. Transport activity is made up of 72 per cent outward deliveries of products and 20 per cent inward deliveries of timber. The remaining 8 per cent consists of inward deliveries of recovered paper, chemicals and pulp and paperboard.
Emissions of fossil carbon dioxide for 2015 totalled 173,000 tonnes. Holmen sold the unit in Madrid at the end of the first half of 2016. Based on emissions for 2015, emissions from transport in 2016 are estimated to total around 165,000 tonnes.
Of these emissions, 44,000 tonnes relate to timber transport to the Swedish mills.
Holmen Skog has set an environmental target of emissions of fossil carbon dioxide from logging and timber transport decreasing by 20 per cent by 2020 in comparison with 2014.
A complementary investigation has been carried out concerning emissions of carbon dioxide from goods transport outside the EU. Emissions from overseas transport have been estimated at around 72,000 tonnes.
Altogether, this means that Holmen's emissions of fossil carbon dioxide from transport of inputs and finished products totalled just over 235,000 tonnes in 2016.