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Finland Post expands to Russia


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17.2.2006
 

 
 

Finland Post will be constructing a logistics centre in Moscow at a cost of some 40 million euros. The aim is for the centre to be completed at the beginning of 2007.

The Moscow centre is Finland Post's first operating location in Russia. There is also interest in starting operations in St Petersburg as well.

"Our customers expect us to be able to cover the neighbouring areas i.e. in particular Russia and the Baltic region. Customers are also increasingly willing to purchase the entire logistics chain on the turn-key principle," says Jukka Alho, Finland Post's President and CEO.

The Moscow logistics centre is meant especially for Finish customers to use. The warehouse, terminal and office premises will cover an area of about 40,000 square metres.

Traffic to Russia increasing

Until 2007 Finland Post will base the coordination of the flow of goods to Russia in Finland. The logistics centre that was opened in the autumn at Mussalo in the port of Kotka will focus on the warehousing and handling of goods meant not only for Russia but also the Baltic region and the CIS countries.

"In practice, the premises at the Kotka terminal are already sold out. If the traffic continues to grow as predicted, it will be possible to double the premises at Mussalo," Alho says.

The expansion venture is part of two trends: whether the Finnish service industry can operate internationally and how Finland will be able to exploit its geographical position in relation to Russia. Alho says Finland Post will be trying to succeed in both.

In the summer Finland Post acquired the Danish company Combifragt Group, and besides Finland it has service warehouse facilities and terminals in Estonia, Latvia, Lithuania and Denmark. Logistics' turnover totalled more than 254 million euros last year i.e. about 20 per cent of the Finland Post Group's turnover.

"Logistics' turnover will have doubled by 2007," Alho promises.



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The Mussalo logistics centre focuses on the warehousing and handling of goods going to Russia, the Baltic countries and the CIS countries.

 

 
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