Finnpilots Annual Report 2022 has been published
A year of change, trust and responsibility
During 2022, Russia’s war of aggression against Ukraine changed the logistics chain for Finland’s foreign trade. Russia’s attack completely stopped vessel traffic in the Saimaa Canal. The situation in the Saimaa region markedly affected Finnpilot’s year and the financial year ended with a loss. The key focuses of the year included the first trial of data transfer for remote pilotage, investments in continuity management and participation in the preparation of the Pilotage Act reform. The calculation of Finnpilot’s emissions was expanded to cover Scopes 1–3.
Finnpilot has the obligation assigned by the Finnish State to carry out the non-profit task of pilotage in the Saimaa region. The Saimaa subsidy, facilitated by the current Pilotage Act and directly bound to the number of pilotage assignments, was not sufficient in 2022 to cover the costs of maintaining the state of pilotage readiness in the Saimaa region.
The removal of St. Petersburg from cruise programmes affected the number of cruise ships and destination ports, with the result being fewer cruise ship visits than the level seen in the years prior to the Covid-19 pandemic. The more extreme price hikes than anticipated for electricity and fuel dramatically increased the costs of pilot transports.
Finnpilot Pilotage Ltd’s turnover for the financial period of 2022 was EUR 34.5 million (2021: EUR 35.2 million) and the net profit was EUR -0.9 million (2021: EUR -1.2 million). In 2022, pilots boarded vessels to be piloted a total of 20,315 times (2021: 21 410), piloting a total of 351,708 nautical miles (2021: 410,840). At the end of 2018, the company had 320 employees (2021: 332).
During the year, Finnpilot was forced to conduct two rounds of change negotiations that resulted in lay-offs and dismissals in the Saimaa region and pilot dispatch. The negotiations were conducted in a spirit of excellent collaboration with employee representatives and succeeded in finding solutions that enabled Finnpilot to offer work in other areas of the company during 2022 to a large number of the Saimaa area employees.
Pilotage plays a critical role for the security of supply of Finnish society. Many essential goods are transported by sea and the passage of cargo must be assured, also in possible times of serious disturbances. In 2022, as a result of the rapid change in the global situation, Finnpilot invested particularly in continuity management and its resilience to disturbances.
Finnpilot’s pilots and pilot boat operators made a total of 681 anomaly observations, a portion of which were also reported to the authorities. Relaying information to the authorities early on may, in the best case scenario, prevent significant damage to the environment and people.
Altogether 99.9% (2021: 99.8%) of all pilotage requests were fulfilled within the limits of the waiting times specified by service level objectives. As demonstrated by all indicators used in the Reputation&Trust survey, Finnpilot is viewed as an extremely trustworthy operator. The results particularly emphasised the provision of safety and professional competence of our employees as well as the openness and transparency of Finnpilot’s activities.
Finland and Finnpilot are at the forefront of international development in remote pilotage. In May, data transfer for remote pilotage was successfully tested along the Kokkola fairway as part of the Sea for Value – Fairway project. The test also sparked international interest and, during the year, an international co-operative network focusing on remote pilotage was established.
Pilotage protects the fragile Baltic Sea from the risks related to vessel traffic and possible environmental accidents. At the same time, the organisation of pilotage activities does leave its mark on the environment. In terms of responsibility work, the year 2022 was a year of systematic and goal-directed development for Finnpilot. For the first time, the company calculated its overall emissions (from 2021 and 2022) and established an emission reduction path to guide the company towards its goal of halving the absolute amount of overall emissions by 2030 (in comparison to the figures for 2021). In 2022, the overall emissions of Finnpilot’s activities totalled 5,068 tCO2e (2021: 6,269 tCO2e).
As concerned the transport fleet of Finnpilot, the year 2022 focused on development and maintenance. One new interseasonal pilot boat was taken into use in 2022 and proved to be highly seaworthy and low in consumption. The company confirmed the order of two optional boats. Also, the first lifecycle extension investment for an ice-strengthened pilot cutter was completed. The project also included a new type of MOB rescue basket that significantly facilitates the rescue of persons who have fallen overboard.
Finnpilot participated actively in the research and specification work carried out to support the reform of the Pilotage Act. The focus of the new law is to ensure the development and verification of pilotage expertise as required by pilots and vessel officers exempt from the obligation to use pilots. The Act also regulates more specifically the pilotage company’s obligation to prepare for emergencies and other exceptional situations, and assigns the company new tasks as regards, for example, the approval of pilotage qualifications and Baltic sea pilotage. The Act, which is intended to enter into force on 1 September, is awaiting the ratification of the President of the Republic of Finland. The preparation of decrees pursuant to the Act and the development of the training programme will continue actively in 2023.
Kari Kosonen, CEO, firstname.lastname@example.org, tel. +358 40 741 4625
Timo Siren, Financial Director, email@example.com, tel. +358 40 145 9848
Finnpilot Pilotage Ltd
Finnpilot Pilotage Ltd is a special assignment company entirely owned by the State that provides pilotage services in all Finnish fairways requiring pilotage. The added safety that pilotage provides within Finland’s narrow archipelago fairways is pivotal in terms of preventing accidents. The pilot is a vital local advisor to the shipmaster and one who provides navigational assistance to vessels along the fairways and increasingly assumes responsibility for steering ships in to port. Pilotage is a vital part of the chain of logistics required for Finland’s international trade and security of supply. Many essential goods are transported by sea and the passage of cargo must be assured, also in possible times of serious disturbances. The costs accrued by the organisation of pilotage activities and maintenance of the national service network are covered by charged pilotage fees.