NETSS – The Pay-Off
Phase 1 of NETSS has seen the implementation of a new route between Kotka and Gothenburg for the southern Finnish mill, and separate lines from Gothenburg to Immingham, Tilbury, and Zeebrü gge established. Shipments can be transferred by cross-docking for onward distribution by rail to local distribution centres around Tilbury and Zeebrü gge.
Phase 2, which is due to get under way in the autumn 2006 through spring 2007, will see product in northern Finland integrated into the system with mills at Veitsiluoto and Oulu forming a triangle trade with Gothenburg and Lübeck. The start-up of Phase 2 will also open up opportunities to ship goods to Antwerp.
Phase 3 will see products from Finnish mills, for shipment via Lübeck, concentrated in Kotka where all cargo will be unitised on cassettes and shipped using the existing line between Kotka and Lübeck.
Stora Enso estimates NETSS will reduce its transportation costs by an initial 20M with further savings in subsequent phases of the project. It will also provide Stora Enso with a more flexible market position for supplying paper to Europe and elsewhere.
Furthermore, NETSS will provide the company with a stronger purchasing position for the transportation services it requires.
Finally the system should also reduce damage incurred during transportation and enhance delivery tacking and control using new RFID systems from Baumer Ident.