Swedish forest products company SCA will build a new container port to improve the transportation of goods to regional and far afield markets.
In a statement, the company said the new container hub will cost $54.67 million (SEK460 million) and have an annual capacity of 100,000 TEU.
Furthermore, SCA will also expand the Port of Tuandal to increase its draft capacity from 12 to 15 meters and increase cargo handling capabilities.
SCA said it will make these investments as it expects pulp production to more than double and sawmill operations are increasing.
Containers are being increasingly used to transport pulp and solid-wood products, it said.
Over the past five years, the volume of containerized trade from Tunadal port has more than doubled.
Magnus Svensson, President Sourcing and Logistics at SCA, said, “This development has meant that we need to be able to handle larger volumes of containerized cargo than previously and be able to accommodate larger ships – both container ships and break bulk vessels.
“With this expansion of the port, we will be able to load significantly larger ships and be able to ensure the efficient and competitive transport of the products that are growing in volume in the region.
“Key parts of the port expansion will be ready in time for the new volumes from the Ortviken industrial site comprising pulp and recycled textile fibers from Renewcell.
“With the expanded port, the combined terminal being built by the Municipality of Sundsvall and the improved rail links to Tunadal port, we will have a transport infrastructure that will move Sundsvall closer to the global export markets and the Scandinavian domestic market, thereby benefiting industry and trade across Northern Sweden,”