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Nurminen Logistics Oyj from Finland

2025-01-20 11:05 Publications
New 2025 year just began, and we open with the introduction one of the first Nordic companies, supported us in the opening of our association in Kazakhstan and the Central Asia.

Let me introduce a member of the Eurasian Nordic Business Association, a Finnish company from the logistics sector - Nurminen Logistics Oyj/Plc.

Our acquaintance with Nurminen Logistics started back in 2008, when they approached Finpro Kazakhstan for assistance in researching the railway industry in Kazakhstan. After conducting a market study, we presented the results to the company's management at their office located in a picturesque forested area. One of the insights for us, unfamiliar with the railway industry, was that the railway gauge in the USSR was different from the European gauge, namely 1524 mm and 1435 mm. At that time, the company was actively working with Russia and was looking at the Central Asian market, considering opportunities to expand further into China and South-East Asia.

After a market study, we assisted the company's management in finding potential partners in Kazakhstan, as a result of which Nurminen, after lengthy negotiations, began to co-operate directly with Kazakhstan Temir Zholy Express.

The history of Nurminen Logistics, like many companies in Finland, goes back to the origins of the family business. Founded in 1886 by farmer Johan Nurminen, Nurminen Logistics started out as a modest family shop, but after a few years it became a shipping company, and by 1910 it had a fleet of 22 ships. During the First World War, the company became Finland's largest freight forwarder and later became one of the first in the country to enter the air transport market. Every decade Nurminen Logistics adapts to new challenges - after the Suez crisis it focused on international forwarding and transport, becoming the leading road logistics operator in the Baltic region. In 2008, the company successfully floated on the Helsinki Stock Exchange, and as of 2018, its container routes cover China, Japan and the Far East, strengthening Nurminen Logistics' position on the global logistics scene. In 2024, Nurminen Logistics actively expanded its presence in the global logistics market by acquiring the Swedish company Essinge Rail AB and strengthening its route on the growing freight traffic between the Nordic countries and continental Europe, serving Scandinavian and international companies in the industrial, technology and commercial sectors. As mentioned earlier, in Kazakhstan, Nurminen Logistics has been successfully co-operating with a subsidiary of the main railway operator Kazakhstan Temir Zholy Express (KTZ-Express) since 2017.
Currently, Nurminen Logistics transports freight to Central Asia, Kazakhstan and further to China and SEA via the Trans-Caspian International Transport Route (TITR), which is 14-15 days from Northern Europe.

With the outbreak of the Russia-Ukraine war in 2022, the importance of the TITR (TMTM) has increased significantly. Sanctions against Russia and disruption of traditional trade routes led to an increase in cargo traffic along the Middle Corridor.

In May 2022, Nurminen Logistics was the first European logistics company to start testing this route. Although many experts were quite sceptical about the opportunities and potential of the Trans-Caspian Corridor at that time, saying that it was a temporary solution. The strategic thinking and foresight of Olli Pohjanvirta, CEO of Nurminen Logistics, who personally supervised the first test run of a full-size container train from Chongqing, China to Central Europe, testifies to the company's extensive experience and strong expertise, capable of responding to the needs of customers in a changing global logistics environment.

The Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, has its origins in the ancient Silk Road linking China and Europe via Central Asia. The modern TITR was officially launched in 2017 and passes through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and Turkey, providing an alternative route for freight transport between Asia and Europe. At that time, this route was mainly used for heavy cargo for the oil industry, engineering, metallurgy and grain cargo.

In 2022, the volume of cargo transported on this route was 1.5 million tonnes. According to the Ministry of Transport of the Republic of Kazakhstan, the volume of cargo transported along the Trans-Caspian International Transport Route (TMTM) for January-November 2024 increased by 63% to 4.1 million tonnes. Container traffic increased 2.6 times and totalled 50.5 thousand. TEU. This was made possible by increasing the capacity of the route to 6 million tonnes per year, including up to 100 thousand TEU of containers. This has made TMTM an important link in the global supply chain, especially for countries seeking to avoid transit through Russia.

According to statistics, the trade turnover between Kazakhstan and the European Union for January-October 2024 totalled $41.2 billion, up 23% compared to the same period in 2023 (exports from Kazakhstan - $32.6 billion, imports to Kazakhstan - $8.6 billion). Nurminen Logistics, a member of Eurasian Nordic Business Association (ENBA), contributes to the trade turnover between the countries by using door-to-door multimodal transport.

At the same time, Nurminen Logistics is a pioneer in logistics and a trendsetter in sustainability in the industry, transporting goods in a certified manner (emission report in accordance with SFS-EN 16258). Emissions from Nurminen's container trains are up to 98% lower than from other modes of transport.

Nurminen Logistics has been serving its customers for over 130 years and is looking to the future with confidence, expanding its presence and offering a comprehensive approach to meet its customers' challenges.Demand for functional low-emission railway logistics services is growing strongly due to overall strong cost growth, increased environmental awareness in business operations and geopolitical tensions. There is a growing need and real demand in the market for new functional transport routes, not only from a business perspective, but also from a security of supply perspective, which is what Nurminen Logistics, a member of the Eurasian Nordic Business Association, offers to their clients.

Please inquire to ENBA for contacts of Nurminen Logistics Plc.

ENBA is your bridge between Northern Europe and Eurasia!