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FINNPILOT PILOTAGE LTD ANNUAL REPORT 2017

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CONTENTS

During December 2017, we illuminated Harmaja Light-house in honour of Finland’s 100 years of independence.

Harmaja pilot station is the first inhabited dwelling that ships pass on their way through Kustaanmiekka strait

to Helsinki. Harmaja island, which is located south of Suomenlinna, has had an operational lighthouse and pilot station since the 1800s.

Still today, pilots are on standby, ready for duty any day, any hour, regardless of weather conditions.

Join us on this pilotage journey!

CONTENTS INTRODUCTION THE YEAR 2017 CORPORATE RESPONSIBILITY


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16 CORPORATE RESPONSIBILITY

18 Pilotage activities19 Pilotage increases safety21 ePilotage is on the horizon22 Key figures

24 Our employees25 Occupational health and safety26 Balance between work and rest27 Personnel survey28 Finnpilot Academy29 Key figures

32 Our stakeholders34 Moving towards a digital age35 Development input of personnel

37 Challenging fairways38 Environmental impacts39 Vessels and equipment40 Key figures

CONTENTS4 INTRODUCTION

5 Our task6 Our responsibility7 Pilotage glossary

8 THE YEAR 2017

9 Review of the CEO11 Objectives and their implementation12 An accident united Finnpilot personnel15 Principles of reporting

17RESPONSIBILITY FOR PILOTAGE

31RESPONSIBILITY TO STAKEHOLDERS

23RESPONSIBILITY FOR PERSONNEL

41RESPONSIBILITY TO SOCIETY

36RESPONSIBILITY FOR THE ENVIRONMENT


42 Special assignment43 Comparison of pilotage fees44 Corporate governance45 Board of Directors46 Company management47 Tax footprint48 Payable taxes49 Human rights and political influence50 Key figures


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INTRODUCTION5 OUR TASK6 OUR RESPONSIBILITY7 PILOTAGE GLOSSARY

The journey to a ship needing pilotage assistance begins at the quay of a pilot station. Transport is provided in either an aluminium fast pilot boat or a steel-framed pilot cutter that can break through ice that is nearly half a metre thick.

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SafetyThe basis for all our activities is safety. We ensure safety for people, the environment and

navigation.

Co-operative approach

We develop our operations on the basis of mutual trust and collaboration. We participate in

navigational development along with other actors

in the field.

RenewalPilotage must have the ability to adapt to the changing demands of navigation. We consistently

renew our services with respect for the needs and requests

of our customers.

VALUES

Our taskPilotage services are an important link within the chain of logistics that serves Finland's foreign trade. We help foreign vessels to traverse the fairways of our archipelago safely and to reach their port of destination according to schedule.

VALUES

VALUES

Finnpilot Pilotage Ltd is an entirely state-owned spe-cial assignment company that operates in the manner prescribed by the Limited Liability Companies Act (624/2006). The legislator has determined the prima-ry objective of pilotage activities as the promotion of vessel traffic safety and prevention of environmental impacts.

We provide consistent, reliable and cost-effective pi-lotage services in all fairways requiring pilotage within the Finnish waterways and the Saimaa region. We en-hance the efficiency of maritime traffic, which trans-lates into a significant financial value for our shipping company customers as well as for the entire national

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economy. The use of a pilot notably reduces the risk of serious environmental accidents. Thus, our operations provide a benefit in terms of financial well-being and the protection of the natural environments of the archipel-ago region.

Navigation is currently experiencing a period of tech-nological change. A system for autonomous maritime traffic is being considered for the Baltic Sea region. Finn-pilot has decided to contribute to the change and seek viable solutions, particularly a functional electronic pi-lotage concept, for the development of remote pilotage. We are meeting the challenges of the future as part of a broad network of navigational operators and experts.



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Our responsibilityFinnpilot reports on the essential aspects of its corporate responsibility under five key themes.

PILOTAGE • navigational safety • navigational efficiency • security of supply PERSONNEL • competent employees • good workplace • occupational health and safety • well-being at work

SOCIETY • openness and transparency • cost-efficiency • acquisitions • role of a special assignment company

STAKEHOLDERS • development of operations • co-operation with stakeholders • impact on local communities

ENVIRONMENT • impacts of our own activities • protection of the marine environment

The company’s primary task is pilotage for the purpose of safeguarding navigational safety, efficiency and secu-rity of supply.

The competence of the personnel determines the qual-ity of the service. Well-being at work and occupational health and safety are the foundations upon which our de-manding service tasks are realised. Finnpilot endeavours to be a good employer.

Society expects the reporting of a state-owned com-pany to be open and transparent. The company should operate in a cost-efficient manner and make responsible

acquisitions. Pricing should be unambiguous and corre-spond to actual costs.

The company’s key stakeholders include shipowners, vessel agents/representatives and ports, that all call for the ongoing development of our services and active col-laboration.

Pilotage proactively prevents environmental accidents and protects the ecosystems of the archipelago. Efforts are made to minimise the environmental impacts of the company’s own activities.



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Pilotage glossaryEvery field has its own professional lexicon and pilotage is no exception. Here is a short introduction to the everyday vocabulary used by pilots and pilotage employees.

An aluminium boat is used to transport pilots when the sea is not frozen.

Fast pilot boat

Pilot ladders are a special type of rope ladder that enables the pilot to embark the vessel. At regular intervals, there are spreaders that are longer than the standard steps and prevent the ladder from twisting.

LaddersElectronic pilotage service that enables a pilot to assist remotely from, for example, a control cen-tre on land. Electronic pilotage is based on a considerably broader exchange of information between the vessel and ePilotage service.

ePilotage

The nickname (“fokka” is jargon for “foresail”) for Finnpilot’s pilot order service. The Pilot Order Centre is open 24/7.

FokkaThe competence of a pilot is demonstrated by the relevant pilot licence, which indicates the person’s ability to navigate specific fairways.

Pilotage licenceA certificate that allows a vessel captain or chief officer to navi-gate a particular fairway without the need for a pilot.

Pilotage exemption certificate


A representative of a shipowner or shipping company in Finland. The titles ‘agent’ or ‘vessel agent’ are also used. This person orders a pilot for a particular vessel.

Shipbroker


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THE YEAR 20179 REVIEW OF THE CEO

11 OBJECTIVES AND THEIR IMPLEMENTATION12 AN ACCIDENT UNITED FINNPILOT PERSONNEL15 PRINCIPLES OF REPORTING

The pilot boat carries the pilot and two pilot boat operators to a vessel that has ordered pilotage services. The pilot uses a tablet to see the details of the assignment. Finnpilot’s own navigation application has also been installed on the tablet, which the pilot, upon arrival at the vessel, can connect to the vessel’s own navigation system.

WATCH THE VIDEO: YEAR 2017 IN BRIEF

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https://youtu.be/8E2I60H_exk


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Review of the CEO Kari Kosonen

Finnpilot Pilotage Ltd

At approximately 5:10 p.m. on 8 December 2017, I re-ceived the first message that one of our pilot boats had capsized near Emäsalo island. That moment set in mo-tion a series of events I will never forget. And it shouldn’t be forgotten, but rather, we should take all the lessons from this tragic event and integrate them in necessary changes to instructions, vessels, activities and different regulations. These changes concern the entire industry that utilises, designs, builds and regulates vessels of this size class. Finnpilot will share all information it gathers concerning the accident with other operators in the field for the purpose of increasing safety across the board. Making improvements in maritime safety is the best way


we can honour the memory of the deceased pilot boat operators.

Prior to the eighth of December, the year 2017 had been an extremely favourable one for Finnpilot and pilotage in general. Starting in April, the number of pilotage as-signments began to increase, after having experienced six years of decline. The increased traffic combined with a strict use of resources created a solid foundation to reach the remarkably good financial result that Finnpilot achieved for the year. It ensured that the owner also got its share of last year’s financial success. The company’s special assignment to oversee pilotage was carried out


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As we look back on a year that was rich in changes and events and forward towards interesting future pros-pects, I would especially like to express my gratitude to our personnel for their strength and ability to cope throughout 2017. I would also continue to encourage everyone within Finnpilot to take an active role in the ongoing development of our activities. Through mutual involvement, we will be able to continue offering our customers an experience that adds significant value to their operations as well.

REVIEW OF THE CEO

Kari Kosonen Finnpilot Pilotage Oy21 March 2018Kari Kosonen, CEO


We will share all infor-mation concerning the Emäsalo accident with other operators in the field for the purpose of increasing safety across the board.

without any serious accidents concerning our custom-ers. This is a fact we should be proud of: 24,261 pilotage assignments without any serious damage or losses to customers. The growth was reflected in the fact that we carried out 800 more pilotage assignments than during 2016.

During the year in review, changes also occurred in the company management, when long-standing CEO Matti Pajula retired and I had the honour of stepping into the position as of 1 April 2017. On the same day, Sanna Sonninen also began her position as the new Unit Director of the Pilotage Unit. During the spring, an up-dated strategy was drawn up for the company that bet-ter incorporated digitalisation innovations in navigation and ensured a more effective use of the expertise we have available in our organisation. In accordance with the new strategy, Finnpilot has networked intensively with actors that research and develop new technolog-ical traffic solutions.

We kept our promise to customers that the waiting time for pilots would be minimal. In September, we were able

to tell our customers that it was possible for us to keep pilotage fees the same for 2018. This was facilitated by the careful monitoring of costs and effective use of resources. This is particularly significant, when we take into account that this pricing decision came at a time when we still didn’t know, for example, the outcome of the collective bargaining negotiations or the devel-opment trend in the number of pilotage assignments. On the other hand, we did know that the general price level would increase at a rate of about one per cent per year. This is all being realised during a time when we are also developing our operations towards a more digital-ised traffic industry, which will require its own time and investments.

In 2018, Finnpilot will look towards the future and con-tinue to work on those initiatives that got underway during 2017. The process of dealing with the aftermath of the accident in December 2017 is currently at the stage in which we are putting planned changes into practice. The other aspects of our development activ-ities are strongly focused on implementing the project that will facilitate a trial of an ePilotage system. Internal-ly, we shall continue our efforts to get as many Finnpilot employees as possible involved in our development ac-tivities. All of these efforts will help to ensure that we remain a leader in fairway navigation and, I hope, will enable us to develop ePilotage to the point at which we can scale the pilotage service to the different customer groups in a way that is even more tailored to the needs of the specific customers. Everything we do endeavours to ensure that we learn from our development work and we are able to offer the latest technological solutions to customers in a way that lends unique value to their own operations.


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Objectives and their implementation

On a scale of 1-7, customer satisfaction onboard the vessels was given an aver-age rating of

6.8The company’s objectives are determined by the Executive Committee and approved by the Board of Directors. We monitor compliance with the service terms and conditions regarding the waiting time for pilotage services, which is no more than three hours in coastal waters and 6 hours in the Saimaa region. Customer satisfaction is expressed via mPilot while on board the vessel in question. A stakeholder survey is conducted every two years.

PERSPECTIVE OBJECTIVE INDICATOR TARGET 2017 ACHIEVED 2017

Customer Prompt service Realisation of service terms and conditions ≥ 99 99.9

Customer satisfaction Vessels (1-7) > 6 6.8

Stakeholders (1-7) - -

Internal Effective use of resources Cost/pilotage (€) < 1,500 1,461

Transport cost/pilotage (€) < 600 638

Piloted nautical miles/person-workday > 21.3 21.8

Occupational health and safety Occupational accidents/year < 13 21

Accident frequency/one million working hours (all) < 23 34

Accident frequency/one million working hours (resulting in absences) 14

Finances Good profitability Operating profit as % of turnover 5.0 6.9

Return on investment % 11.0 16.7

Equity ratio % > 50 69.4

Good solvency Quick ratio > 1.1 1.2

Learning and growth Satisfied personnel Result of work satisfaction survey (1-6) > 4.4 4.7

Minimal absences Absences as % of total working hours < 4.5 5.0

Promotion of competence Training days, person/year(excl simulation runs) > 1 0.8



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An accident united Finnpilot personnelThe pilot boat accident, in which two employees lost their lives, was a shock for everyone at Finnpilot, and the recovery from that shock will take time. Working together, the personnel and management will ensure that safety is improved by implementing concrete measures that prevent this type of accident from reoccurring.

At 4:57 p.m. on 8 December 2017, Finnpilot’s pilot boat L242 capsized in the Gulf of Finland, near the northern pilot boarding position of Emäsalo island. At the time of the accident, the vessel had been moving from the stern of

Together we experienced grief and together we shall move forward.

the piloted ship in order to come alongside and pick up the pilot descending from its deck. The conditions were windy, but the vessel had been designed to manage in conditions that were considerably worse. After floating on its side for about ten minutes, the vessel completely overturned. The two pilot boat operators in the vessel’s cabin perished in the accident and the vessel sunk during the rescue opera-tion. As the rescue operation proceeded, a diver was able to retrieve the deceased from the cabin resting on the sea bottom and lift them out of the sea.

It was an accident that no one could have predicted. The previous sinking of a pilot boat that resulted in a loss of life

took place in Finland in 1964, more than half a century and over one million pilotage assignments ago. Serious occu-pational accidents are, in general, rare in pilotage activities, thanks to professional competence, long-term safety ef-forts and product development. The vessels are designed and built in accordance with Finland’s regulations to with-stand heavy use. The personnel has learned to rely on these vessels, which are serviced and maintained regularly and upgraded systematically. Rescue training and practi-cal exercises are organised for the personnel each year. Despite all of this, a serious accident did take place. We will, however, do everything in our power to ensure that it never happens again.


Finnpilot’s employees participated in the lifting of the sunken pilot boat, the internal investigation of the acci-dent and the planning of the new safety measures.


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The Emäsalo accident did not halt maritime traffic in Finland and, therefore, the need for pilotage also con-tinued as normal. On the day after the accident, the management called for a shared moment of grieving and emergency meeting with the personnel of the pi-lot station. On the basis of information provided by the pilot who witnessed the accident, it was deduced that the vessel capsized due to circumstances that were cre-ated as a result of the forceful turning of the ship in an effort to shelter the disembarkment of the pilot. The engine and GIS information received from the vessel also helped in the analysis of the event. Our employees were immediately given additional safety instructions to prevent the risk of getting caught up in the circum-stances and chain reactions suspected to have caused the capsizing.

The accident unnerved the entire Finnpilot communi-ty and undermined its feeling of safety. The grief and


confusion it stirred could not be overlooked. Crisis counselling provided by the occupational health ser-vice was offered to all employees at the pilot stations, in administration and at the Pilot Order Centre. Debrief-ing sessions enabled all participants to share their own thoughts and express their feelings in a confidential en-vironment. People noticed that they were not alone in what they were feeling. The employees also wanted to show their personal support to the families of their per-ished colleagues. In order to see that wish met, the pilot boat operators’ association (Luotsikutterinhoitajat ry), the Finnish Seamens’ Mission and Finnpilot organised a collection for the families and, in particular, the children of the victims. The collection, organised through the Kotimaanapu service of the Evangelical Lutheran Church of Finland, received donations from a broad range of sources, also outside of Finnpilot, as private individuals and navigation-related communities also wished to ex-tend a helping hand. The management of the company met with the families and participated in the funeral ser-vices along with other Finnpilot employees.

The sunken vessel was lifted from the sea on 19 De-cember, when weather conditions in the Gulf of Fin-land had become more favourable. Our own employees were heavily involved in the planning, leading and imple-mentation of the recovery operation. One of our pilots served as the Salvage Master for the operation. The success of the lifting process was guaranteed by seam-

less co-operation with the Coast Guard (patrol vessel Turva), the Defence Forces (multipurpose vessel Louhi), the Finnish Environment Institute (SYKE) and the Safe-ty Investigation Authority. In the midst of its grief, the organisation endeavoured to initiate an unprecedent-ed co-operative effort to process the large amount of information, clarify the matter and restore a feeling of safety. Our group of navigation professionals proved to be a crucial resource for, among other things, the pro-cessing of mutual grief, the internal investigation of the accident, the determination of necessary measures, the lifting of the sunken vessel and the technical investi-gation of the vessel once lifted. From the beginning of the internal investigation, the company’s management stated its intention to share all information gained from the accident with personnel - openly and honestly. The result was the strengthening of mutual trust, which will carry the company far into the future.


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The clarification of the factors that caused the accident and the planning of measures to improve safety got un-derway at Finnpilot quite soon after the accident. Our field personnel have been well represented within the working groups: pilot boat operators and pilots have contributed to the internal investigation and development work. Rep-resentatives of boat and engine manufacturers were also closely involved in the analysis of the incident and deter-mination of development measures. According to our joint technical investigation, the vessel suffered no sudden technical faults that might explain what happened.

The investigation established that pilot boat L242 met all of the requirements necessary for the vessel. Despite this fact, the accident exposed needs for development that had never before come to light in the observations and ex-perience of Finnpilot, the vessel manufacturer, inspectors, rescue trainers, vessel certification authorities or other organisations operating with similar boats. The decision has been made to make certain technical alterations to the fast pilot boats already during the winter docking sea-son in 2017–18: the rear side windows of the cabin will be changed into evacuation hatches to enable for an easier exit in emergency situations. Changes will also be carried out on similar type vessels with the intention of ensuring that the vessel structures will not take on water if the boat is floating on its side. The stability of the fast boats will be improved by lowering the centre of gravity of the fuel load. Additionally, the professional rescue training will be expanded to included rescue from a capsized vessel.

The Safety Investigation Authority (OTKES) shall investi-gate the causes of the incident in the manner prescribed by the Safety Investigation Act (525/2011) and publish a final report of that investigation once completed. Finn-pilot Pilotage Ltd shall also publish its own conclusions regarding the series of events once OTKES has provid-ed its report. At this stage, we can already state that, as a consequence of the Emäsalo accident, the need to increase investments to ensure the safety and depend-ability of the pilotage fleet will be further emphasised in the future. Safety improvements must also be carried out on our existing fleet, because the lifecycle of these vessels is long.

As a result of the accident, changes will be made to our activities and equipment.

Emäsalo pilot station and a fast pilot boat. The existing vessels will undergo technical changes

to improve their stability and the possibilities for the crew to evacuate the cabin.

Changes are anticipated in the building regulations for new vessels. At the same time, any changes to pilot boats will need to analysed carefully to ensure that they will not result in other occupational health and safety risks and, thereby, weaken the overall safety of the personnel.


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Principles of reportingFinnpilot Pilotage Ltd carries out the reporting of its cor-porate responsibility in compliance with the reporting model drafted for the ownership steering of State-owned companies, which was published in 2011 in connection with the decision in principle issued by the Government. The guidelines for non-listed State-owned companies were supplemented with the recommendation issued in 2016.

Our key figures reflect the mandatory key figures com-mon to all State-owned companies that are obligated to report. Supplementary and optional key figures and de-scriptions have been appended to the extent that such in-formation is material in terms of the company’s activities.

We have been reporting on our corporate responsibility since 2012. We publish the report each year in PDF for-mat on our website (in Finnish), which also provides ac-cess to the reports from earlier years.

Our annual report is primarily intended for our key stake-holders, which include, e.g., our customers and our per-sonnel. From their perspective, the fundamental aspects include the descriptions and key figures related to the company’s financial situation and to the development of the personnel’s well-being at work. In terms of our oth-er stakeholders, the report provides an overview of the impact of our pilotage services and their significance in modern society as well as of the ongoing development of the company’s activities. We also hope that our annual report is useful for decision-makers and ordinary citizens. We have attempted to demonstrate the positive impacts that pilotage has on financial well-being and environmen-tal protection.

Boundaries and scope of the reportThis report concerns the year 2017 and Finnpilot Pilot-age Ltd. The figures for Ice Advisors Ltd, the subsidiary owned jointly by Finnpilot and Arctia Ltd, are not included in this report.

The report includes comparative information from earli-er years, if such figures were available via accounting.

Measurement and calculation principlesThe key financial figures have been calculated in the man-ner specified by the Accounting Act (1336/1997).

The key personnel figures have been calculated in the manner specified by the Accounting Act and in compli-ance with the Global Reporting Initiative (GRI) to the ex-tent required by the decision in principle issued by the Finnish Government.

The assessment of the impact of pilotage is based on a study that we have conducted together with the Univer-sity of Turku’s Centre for Maritime Studies (B 184 2011). The development of the assessment method has contin-ued within the company.

The reporting on the tax footprint complies with the country-specific tax reporting guidelines for companies in which the State is a majority shareholder.




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One of the pilot boat operators serves as the captain of the vessel. The modem installed in the engine records data that can help to reduce fuel consumption and extend the service life of the engine.

CORPORATE RESPONSIBILITY

RESPONSIBILITYFOR PILOTAGE

RESPONSIBILITY FOR THE PERSONNEL

RESPONSIBILITY TO STAKEHOLDERS

RESPONSIBILITYFOR THE ENVIRONMENT

RESPONSIBILITY TO SOCIETY

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The pilot boat must be positioned alongside the ship to be piloted so that the pilot can safely climb aboard. The vessel and ship travel side-by-side at the same speed. The individual steer-ing the pilot boat must be highly competent and able to adjust the vessel’s speed to that of the ship in question.

18 PILOTAGE ACTIVITIES19 PILOTAGE INCREASES SAFETY21 ePILOTAGE IS ON THE HORIZON22 KEY FIGURES

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RESPONSIBILITYFOR PILOTAGE


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Responsibility for pilotageThe number of pilotage assignments took a strong upward turn when the prolonged economic recession finally eased.

Foreign trade tonnage turned towards a growth trend during February–March 2017 for both imports and ex-ports. The financial rise began to be visible in terms of pilotage assignments during April–May. A 3.4 per cent annual growth in pilotage assignments was reported, as the total reached 24,261 individual assignments. In terms of nautical miles, this equated to a total of 459,671 miles, which is a 4.6% increase from the previous year.

Finnpilot succeeded in meeting its target service lev-el in terms of pilot waiting times, which is a maximum of three hours in coastal waters and six hours in the Saimaa region. While the target service level is 99 per cent, a total of 99.9 per cent of all pilotage assignments

Piloted nautical miles increased by 4.6%.

Every third vessel that makes a stop in Finland utilises the pilotage services of Finnpilot.RESPONSIBILITY FOR PILOTAGE

during the year had waiting times that were shorter than the maximum hourly limits.

Pilotage is an essential link within Finland’s chain of logis-tics. Finnpilot’s pilotage services are used by approx-imately every third vessel visiting Finland’s ports. In ac-cordance with the Pilotage Act (940/2003), the services are provided in public fairways within Finnish waters and the part of the Saimaa Canal leased by Finland that are designated as fairways requiring pilotage. The Finnish Transport Safety Agency (Trafi) determines the fairways requiring pilotage and the pilot boarding positions. The operational activities are divided into six pilotage areas and a District Chief Pilot is assigned to each area to su-


pervise the organisation of the activities on a practical level. Finnpilot’s Pilot Order Centre receives orders 24 hours a day, 7 days a week, for the three pilotage zones: Eastern (Saimaa and Kotka), Southern (Helsinki, Hanko, Emäsalo and Porkkala) and Western (Archipelago Sea, Bothnian Sea and Bay of Bothnia).


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PILOTAGE AREAS

Pilot station or substation

Bay of Bothnia Ajos, Hailuoto, Oulu, Raahe, Kokkola, Leppäluoto, VaasaDistrict Chief Pilot: Ilkka Sipilä

Bothnian Sea Kaskinen, Pori, RaumaDistrict Chief Pilot: Klaus Kauko

Archipelago Sea Uusikaupunki, Turku, Maarianhamina, Utö, HankoDistrict Chief Pilot: Ari Saari

HelsinkiPorkkala, Harmaja, EmäsaloDistrict Chief Pilot: Jukka Ketonen

KotkaOrrengrund, KotkaDistrict Chief Pilot: Matti Martikainen

SaimaaLappeenranta, Puumala, Savonlinna, VuokalaDistrict Chief Pilot: Pasi Paldanius

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RESPONSIBILITY FOR PILOTAGE

The amendments to the Pilotage Act that entered into force in 2017 require Finnpilot to now draft and main-tain an operational handbook. The purpose of the op-erational handbook is to promote consistent pilotage practices and a uniform culture of safety. Finnpilot’s own goal is to utilise the operational handbook to cre-ate guidelines that are even more demanding than those prescribed by law, above all else, for the use of its own personnel and the development of its own operations. The first version of the handbook was submitted to Trafi in June 2017 and was taken into use in November of the same year.

Pilotage increases safetyThe largest customer base for the pilotage services provided by Finnpilot is comprised of foreign shipping companies, whose vessels carry foreign officers and crews. These ships are accustomed to the open sea and flowing waters, not narrow and rocky fairways and pack ice. They also may have a high turnover rate among their personnel. A pilot boarding one of these ships brings a level of expertise to the bridge that ensures that the ship will travel smoothly and safely into port or from port out to the open sea. Armed with master mariner training and a pilot licence, a pilot serves as the ship-master’s right hand and advisor and, along with fairway navigation, is also increasingly more often responsible for steering the ship to the quay. The role of the pilot has, indeed, become more essential from year to year. This is explained by an internationalising trend in mari-time traffic as well as the increasing size of the ships and tighter scheduling of traffic.



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The analysis of anom-aly observations fun-damentally improves safety.


The added safety that pilotage provides within Finland’s narrow archipelago fairways can be piv-otal in terms of preventing accidents. Finnpilot has been systematically compiling information about anomalies observed by pilots and the impact of pi-lotage since 2011. In 2017, pilots reported 1,552 anomalies, which will prove helpful for Finnpilot and, for example, the Finnish Transport Safety Agency (Trafi) when drawing up navigational safety analyses.

The IT system development that has been ongoing over the past two years has, during this transition phase, weakened the comparability of the gathered anomaly data. Despite this fact, Finnpilot managed to gather a great deal of information. The system development will continue throughout 2018. The observations of pilots facilitate rapid communications concerning the observed anomalies and risk factors, such as techni-cal faults in vessels. Observations that are saved in the system also make it possible to gain an overall pic-ture, in real time, of the safety development among maritime traffic within Finland’s fairways for an entire analysis period. Anomaly reporting has brought trans-parency to the safety observations that, earlier, re-


mained primarily the pilots’ own knowledge and upon which they often based the predictions and pilotage risk management that is essential to their actions.

On the basis of anomaly analyses, the majority of pre-vented accidents and damage is related to technical problems with onboard systems and equipment or lack of competence among the vessel’s personnel. The anomalies can also be caused by the activities of other operators handling, for example, the opening of bridges or docking of vessels. Finnpilot Pilotage Ltd sends its anomaly reports to the supervisory author-ity (Trafi), but does not publish any information about prevented accidents or near miss situations, because they fall within the sphere of customer confidentiality.

Finnpilot is working on establishing a new classifica-tion and handling system for anomaly observations, which requires us to review all observations starting in 2011. The classification will help us to better under-stand how different factors affect the occurrence of anomalies. At the same time, the tracking of changes and trends will be easier as a result of the statistical monitoring and systematisation of safety observations.


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We intend to test the ePilotage system in 2020.

We make use of the possibilities offered by digital technology when developing new services for our customers.


An ePilotage trial on the horizonAlong with the analysis of safety observations and fur-ther specifications of the operational handbook, Finn-pilot participates in a number of different development projects that serve to advance the development of its own operations and the digitalisation of navigation.

In 2017, the company made the decision to acquire a navigation system that would be installed in the tablets used by its pilots. The system contains a navigation appli-cation as well as an individual GPS receiver for position-ing purposes. In addition, the system is able to utilise the AIS (Automatic Identification System) data of the Finnish Transport Agency or information about a ship to be pi-loted when the system is connected to devices equipped with AIS plugs. The result of the project, currently being initiated, is that customers will be able, in the future, to upload a route plan devised by Finnpilot into their own navigation system, enabling the shipmaster and pilot to literally work with the same map. The plan is for the sys-tem to be taken into use no later than 2019.

With the help of the electronic pilot order system, Pilot Online, customers can provide advance information, or-der a pilot, change initially-submitted information and track their own order. The system was tested and fur-ther developed in 2017, and the service is intended to


be taken into use during 2018. The mobile ERP system, mPilot, makes it possible to monitor the pilotage pro-cess in real time and to gather and share related infor-mation. The development of the mPilot software con-tinued in 2017 as well as the operational launch of the system in the Saimaa region.

The Ministry of Transport and Communications has been preparing an amendment to the Pilotage Act that would enable Finnpilot the opportunity to test remote pilotage, for example, from an onshore control centre. In accordance with its strategy, Finnpilot has initiated the development of new pilotage services. This ePilot-

age initiative is based on the idea that such a system would provide more specific positioning information, better predictability of vessel movements and real-time data transfer between the ePiloted vessel and the pi-lotage service provider. Finnpilot aims to implement the testing phase of the ePilotage initiative in 2020 and is working towards that aim with help from DIMECC and several Finnish companies, research organisations and universities. The implementation of the ePilotage sys-tem is believed to require a broader operational model for the services available along the Finnish fairways, and for this reason, the implementation of the trial requires extensive co-operation with other operators in the field.


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KEY FIGURES CONCERNING PILOTAGE

No. of pilotage assignments 2013 2014 2015 2016 2017

Kotka 4,899 4,496 4,203 4,157 4,498

Helsinki 5,490 5,100 5,124 5,111 5,309

Archipelago Sea 3,168 3,273 3,385 3,151 3,342

Bothnian Sea 3,483 3,295 3,212 3,170 3,246

Bay of Bothnia 4,879 4, 877 4,727 4,903 4,920

Saimaa 4,139 3,827 3,345 2,969 2,946

Total 26,058 24,868 23,996 23,461 24,261

Piloted nautical miles 2013 2014 2015 2016 2017

Kotka 109,496 101,149 95,375 96,205 103,458

Helsinki 65,145 62,258 62,522 65,524 67,148

Archipelago Sea 95,092 98,616 97,095 84,524 97,104

Bothnian Sea 23,572 23,255 23,146 22,470 22,790

Bay of Bothnia 69,714 73,712 77,386 81,626 81,122

Saimaa 117,443 111,755 104,127 89,170 88,049

Total 480,462 470,745 459,651 439,519 459,671

The number of pilotage assignments turned upward in 2017 after a six-year downward trend.


We piloted nearly

460,000nautical miles.


23

24 OUR EMPLOYEES25 OCCUPATIONAL HEALTH AND SAFETY26 BALANCE BETWEEN WORK AND REST27 PERSONNEL SURVEY28 FINNPILOT ACADEMY29 KEY FIGURES

A pilot climbs aboard using a standard rope ladder. A second pilot boat operator stands on the deck of the pilot boat to ensure that the pilot’s ascent to the moving ship is carried out safely.23


RESPONSIBILITY FOR PERSONNEL


24



Our employeesWe work on the waters, in the pilot sta-tions, in the Pilot Order Centre and in ad-ministration. Finnpilot employs more than 300 employees. Let's meet a few of them.

Jussi Keveri“I have been piloting ships in the waters around Kotka for 10 years already. I truly love my job! It feels like Finnpilot’s cus-tomer is the entire nation of Finland. I do my best to ensure that the vessels I’m piloting avoid the risk of accidents and their goods travel firmly on the fairway.”

Pilot

Pilot boat operatorTuomo Piipari“The work of a pilot boat operator is multifaceted. My tasks include operating pilot boats, acting as security personnel on the ship deck and carrying out equipment and vessel main-tenance. I have worked at pilot stations along the southern coast, from Kotka to Harmaja, for four years. In the photo, I am travelling by fast pilot boat near Orrengrund, outside of Loviisa.”

HostessHelena Andersson“Emäsalo island is both a home and a workplace for me. I started my job as a summer substitute, but since 1994, I have worked as a full-time hostess at the pilot station. I prepare the daily meals and purchase goods and necessities. It is also my responsibility to maintain the tidiness of shared premises and to carry out the weekly cleaning of the residential rooms.”

Kaija Iso-Karvia“In the Economy Unit, I see the full extent of Finnpilot’s activities, including any regional and unit-specific differenc-es. Although there are a lot of routines involved in the job, the multitude of tasks, from basic accounting to budgeting, keeps the job interesting and motivating. My nine years in this job have taught me a great deal about the field of navigation.”

Chief Accountant

Pilot coordinatorLeena Sundman“The ability to cope with pressure and react appropriately as well as good language skills are essential attributes for a pilot coordinator. Social skills are also necessary. I have worked at Fokka, our nickname for the Pilot Order Centre, for about ten years. The work is carried out in three shifts every day of the year.”


25

Responsibility for personnelOur company supports occupational health and safety, the retention of work ability and new learning in a number of ways. The establishment of our new training pro-gramme, aptly named Finnpilot Academy, draws heavily from the existing competence of our own employees.

Even though 2017 ended tragically with the Emäsalo accident, it doesn’t undermine the fact that we metic-ulously endeavour to ensure the safety of our employ-ees. Water rescue exercises are carried out annually at all pilot stations. Every third year, the exercises are led by Meriturva Maritime Safety Training Centre and any identified shortcomings are corrected. Meriturva has a rescue training unit in Lohja, Finland, where pilots and pilot boat operators receive rescue and survival training for new employees, and where they return for refresher courses every five years. The plan is, in the near future,

Rescue and survival training is conducted each year.

The work ability of the pilots and pilot boat operators is checked every two years by means of medical examina-tions.RESPONSIBILITY FOR PERSONNEL

for the unit in Lohja to provide practice in the process of evacuating a pilot boat cabin.

Reporting on safety deficienciesPilotage-related accidents (21 in 2017) are generally mi-nor, such as injuries caused by slipping or strain caused by lifting heavy equipment or materials. Moving around a boat or ship deck in slippery conditions and in the dark is a clear safety hazard that can be diminished, for exam-ple, with the use of the right type of footwear. We have planned the ‘Stay upright!’ campaign for 2018.


During 2018, we will also be initiating the use of a new and simpler method for reporting deficiencies or faults that affect occupational health and safety and that are noted by personnel in their daily work. The purpose is to find a way to learn more efficiently, as an organisation, from any accidents that occur. When we are better able to identify and understand the factors that cause acci-dents, it is easier for us to prevent them.


26


Balance between work and restPilots and pilot boat operators undergo a statutory medical examination for crewmen every other year. The content of the examination is being systematical-ly developed with help from our occupational health service. The medical certificate is one way to ensure a person’s suitability, in terms of their health, for the work required on vessels. One cannot work as a pilot or pilot boat operator without a valid medical certificate or an exceptional permit granted by the Finnish Trans-port Safety Agency (Trafi). In recent years, the terms for receiving an approved certificate have become more stringent. Already for this reason, it is important to deal immediately with any issues that threaten work ability. In connection with the medical examination, employees also have the possibility to undergo a vol-untary test to measure their physical performance lev-el. The average age of our personnel is more than 50, a fact that emphasises the importance of maintaining well-being at work and work ability.

Pilotage work takes place during irregular shifts, thereby placing a physical and mental strain on the employees. In order to cope with the work, it is vital to take the time to recover and rest. The work at the pilot stations is carried out using a week on/week off system. The work weeks also naturally include time for rest and recovery as well. To ensure sufficient rest and recovery, Finnpilot has endeavoured to assure quali-

New practices are being sought to ensure the balance between work and rest.

Pilotage personnel work on a week on/week off schedule.

ty conditions in the pilot stations, such as supportive beds and quality linens, the installation of blackout cur-tains and special attention to air circulation and sound insulation. It isn’t possible, however, to force someone to rest, so everyone must take personal responsibili-ty to ensure that they can sustain the level of alert-ness required by their own duties. Solutions for find-ing balance between work and rest have been sought through the Night on the Fairway development project conducted in co-operation with the Finnish Institute of Occupational Health. On the basis of the results of the project, local working groups were established for those stations that do the most night shift work. Dur-ing 2018, the proposals of the local working groups will be reviewed in order to determine good practices that

can be taking into use nationwide. Having said this, we also recognise that a single operational model will not necessarily work at every location. One way to funda-mentally improve the ability to cope at work is through a better predictability of the work tasks. This is one of the anticipated benefits of developments to the pilot order system.



27


More accessible personnel surveyOf the Finnpilot employees who responded to the per-sonnel survey in 2017, a total of 93 per cent were very or quite satisfied with their workplace. The survey was less detailed than earlier and it was possible to answer using a mobile device. The response rate increased from 56 per cent in the previous year to 62 per cent. The over-all rating given to the employer has improved each year, but there is still room for improvement. There were no-table differences between the results for each unit, and the personnel felt that not all issues had developed in the right direction. For example, the usefulness of de-velopment discussions was questioned. For this reason, the questionnaire form used in the discussions with pi-lotage personnel was updated in 2017. As requested by the personnel, more concrete questions related to, for example, work equipment were added to the list. Next, we will be amending the development discussion pro-cess as it concerns pilot coordinators. There is no in-tention to do away with the development discussions, because they are an important means of ensuring an annual review of key work issues, such as training, cop-ing at work, the work atmosphere and equipment, with each employee. We simply need to find a more mean-ingful approach to the discussions from both the per-sonnel’s and the supervisors’ standpoint.

Having previously received harsh criticism, the compa-ny’s management skills have, in light of the survey re-sults, seen marked improvement. The personnel is, for the most part, satisfied with the company’s supervisory

According to our survey, 93% of the personnel were very or quite satis-fied with their workplace.

More concrete issues were added to the development discussions.

work. The supervisors overseeing the pilotage activities on a regional and local level have been granted more au-thority, and we have learned to take better advantage of the expertise of our personnel. Efforts will be made to justify decisions more clearly, and more issues will be handled through collaboration.

Alternative work solutions for the Saimaa personnelThe repairs of the sluice gates in the Saimaa Canal will have a significant impact on the work situation for our Saimaa personnel over the coming years. The period when the canal is closed during 2018 and 2019 will ex-pand from the normal 13–14 weeks to approximately 19 weeks. Earlier, many holidays have been scheduled for the period when the canal is closed, and the working hours of the Saimaa personnel have been carried out in the coastal pilotage areas. As the period will be ex-ceptionally long during the next two years, the afore-mentioned measures will no longer be sufficient. At the end of 2017, Finnpilot was forced to begin co-operation negotiations that concerned our entire personnel in the Saimaa region. The aim was to figure out how to employ as many of these employees as possible in the coastal areas during the periods of canal closure, from January to May. Those employees for whom work on the coast was not a possibility were offered the opportunity to as-sume other work tasks, for example, related to adminis-trative projects. The reorganisation of the work during the Saimaa canal closure periods was so successful that only a few layoffs were necessary.



28


Finnpilot Academy becomes a key training projectOne of the cornerstones of Finnpilot’s new strategy is the reform of the internal training programme through collaboration between the management and the per-sonnel. In November 2017, the task of setting up Finn-pilot Academy was assigned to a working group which included representatives of pilots and pilot boat opera-tors. The objective of the working group is to survey the changed operational environment during spring 2018 and determine the training needs for the coming years. In the initial phase, the tasks include outlining the nec-essary structure for the training programme and brain-storming on the organisation of the trainers’ tasks.

The digitalisation of maritime traffic signifies an inev-itable change for pilotage as well. Routine work tasks will be automated to a large extent in the future. We are aiming to initiate the trial of the ePilotage system for remote pilotage within two years. All of this calls for us to engage in further learning and the unbiased develop-ment of our own competencies. In order to realise our vision of becoming the most internationally esteemed pilotage organisation, we need to be a learning organisa-tion. The ability to recognise, understand and apply new

innovations and approaches is essential in the midst of an age of technological change. Finnpilot is rich in spe-cialised navigational expertise, which affords us a solid foundation from which to respond to the challenges of the future. We need to learn how to integrate this avail-able expertise more efficiently in our training. We have gained encouraging experience in learning new things through projects in which our field personnel have had a much more significant role than our administration. Prime examples of such projects include the launch of the Transas navigation system for pilots and the renew-al of the navigation equipment aboard our vessels.

The ability of a hierarchical organisation to realise fast-paced development projects is limited. Among our field personnel, there are people who possess the compe-tence and passion to head up learning projects. The de-velopment of our internal training programme also re-quires external expertise, of course; the intention is not for our personnel to simply train themselves. We want to offer our own instructors the opportunity to add to their own expertise at the best educational institutes in the field. This ensures that they are able to enrich our company with genuinely innovative knowledge.

The internal training pro-gramme makes use of the competence and moti-vation of the personnel.

The field personnel has a great deal to contribute to the

development of training.



29

KEY FIGURES CONCERNING PERSONNEL

No. of personnel by function 2013 2014 2015 2016 2017

Pilots 152 148 149 143 143

Pilot boat operators 138 145 140 140 141

Pilot Order Centre 19 18 18 18 19

Hostesses andhousekeepers 7 6 9 7 8

Administration 18 19 19 19 19

Total 334 336 335 327 330

Mean person-workyearsduring the year in review 325 320 320 317 315

No. of operational personnelby area 2013 2014 2015 2016 2017

Bay of Bothnia 59 60 61 63 65

Bothnian Sea 40 42 39 38 42

Archipelago Sea 52 53 52 53 53

Helsinki 59 59 58 54 54

Kotka 33 32 37 33 32

Saimaa 54 53 51 49 46

Total 297 299 298 290 292

Type of employment, permanent/fixed-term 2013 2014 2015 2016 2017

Permanent 308 308 307 306 303

Fixed-term 26 28 28 21 27

Total 334 336 335 327 330

Nature of employment,full-time/part-time 2013 2014 2015 2016 2017

Full-time 322 324 324 318 316

Part-time 12 12 11 9 14

Total 334 336 335 327 330

Work satisfaction of person-nel and survey response rate 2013 2014 2015 2016 2017

Response rate 55% 60% 60% 56% 62%

Mean value for all criteria(scale 1-6) 3.8 4.0 4.1 4.3 4.4

Overall rating for the employer (1-6) 3.8 4.1 4.3 4.4 4.7

Personnel distribution,male/female 2013 2014 2015 2016 2017

Male 304 308 305 298 299

Female 30 28 30 29 31

Total 334 336 335 327 330



30

The average age of the personnel was

51

KEY FIGURES CONCERNING PERSONNEL

Board of Directors 2013 2014 2015 2016 2017

Male 5 5 5 5 4

Female 4 3 3 3 3

Total 9 8 8 8 7

Executive Committee 2013 2014 2015 2016 2017

Male 4 4 4 4 3

Female 1 1 1 1 2

Total 5 5 5 5 5

Number of accidents and absences 2013 2014 2015 2016 2017

No. of accidents 19 15 14 18 21

Absences due to accidents,days of work 265 66 171 271 82

Accident frequency (occurring at work) 28 21 23 29 24

Absences 2013 2014 2015 2016 2017

Days of work 3477 3101 3911 3379 4032

Days/employee 10 10 12 10 12

Share of full-time working hours, % 4.4 4.0 4.9 4.3 5.0

Health percentage, % (of personnel who were healthy for the entire year) 46 45 42 45 42

Occupational health care costs, % 2013 2014 2015 2016 2017

Medical care 49.4 48.8 50.7 46.6 43.6

Preventive care 50.6 51.2 49.3 53.4 56.4

Total 100.0 100.0 100.0 100.0 100.0

Reasons for termination of employment and retirement age 2013 2014 2015 2016 2017

Total 13 10 10 12 14

Terminated employments (cancelled employment contract) 0 0 0 1 0

Resigned 0 1 1 3 3

Retired 12 9 8 8 9

Deceased 1 0 1 0 2

Average retirement age, in years 60 63 64 62 62

Average age of personel by functionat the end of the year 2013 2014 2015 2016 2017

All personnel 50 50 50 51 51

Pilots 51 51 52 52 52

Pilot boat operators 49 50 50 51 52

Pilot Order Centre 39 41 40 41 43

Hostesses and housekeepers 59 59 59 59 60

Administration 46 46 47 48 48

Finnpilot had 330 active employees.



31

32 OUR STAKEHOLDERS34 MOVING TOWARDS A DIGITAL AGE35 DEVELOPMENT INPUT OF PERSONNEL

Our customers can trust in the fact that our pilots will steer their ships into port reliably and on time. Along with fairway navigation, the pilot (in the foreground of the photo) is also often called on to dock the piloted ship in port.31


RESPONSIBILITYTO STAKEHOLDERS


32

Responsibility to stakeholdersFinnpilot is actively contributing to the digitalisation of navigation and development of ePilotage. For our customers, this translates into the provision of even better pilotage services.

Finnpilot recognises the significance of its stakehold-ers to the success of the company. We must be able to meet the expectations of our customers, owners and co-operative partners now and in the future. The needs of our key stakeholders are made clear through active dialogue. As part of the effective management of our customership, we have drafted specific plans for each stakeholder group, and the implementation of the plans is monitored closely.

Our direct customers are primarily foreign shipping companies that benefit from the smooth and safe traffic our services guarantee both in the fairways and ports.

Finnpilot and its stake-holders should have a shared vision concerning the development needs of pilotage services.

The majority of our customers are foreign shipping companies.RESPONSIBILITY TO STAKEHOLDERS

International price comparisons show that our pilotage fees are among the most reasonable in the Baltic Sea region. Shipbrokers are representatives of the shipping companies, who work in Finland and manage the pilot orders and financial transactions. In 2017, we were able to test the use of an electronic pilot order system with the shipbrokers.

The ports are among our indirect customers and vital co-operative partners. Cargo must reach ports and depart from ports reliably and without delays. Our en-deavour is to ensure that the ports and Finnpilot have a shared vision of the development needs of pilotage



33

services. Easily attainable and cost-efficient pilotage services are also of primary importance to Finland’s industry and foreign trade, both of which we serve. Pi-lots do their share each day to assist the transport of, on average, goods worth more than one hundred million euro. Our pilotage services help to safeguard a smooth and cost-effective transport chain.

The Finnish Government owns 100 per cent of our com-pany, but it is also one of our key stakeholders. It must be able to trust that we will carry out our special assign-ment responsibly from a financial and environmental perspective, as well as in terms of supply of service. By preventing maritime traffic accidents, pilotage gener-ates safety and well-being for the environment and so-ciety as a whole.


STAKEHOLDERS AND EXPECTATION

OWNER• Safe and efficient provision of pilotage services• Revenue and cost-efficiency• Open and transparent activities

BOARD OF DIRECTORS

• High-quality safety service• Cost-efficiency• Clear, high-quality reporting• Thorough preparation work

SHIPPING COMPANIES AND SHIPBROKERS

• Professional, high-quality pilotage services• Available and flexible service

PORTS • Available and flexible service• Consistent interaction

PERSONNEL

• Continuity, permanence of employment• Competitive earnings level• Functional communications• Functional occupational health service• Effective management• Possibilities for influence• Maintenance and development of competence• Diverse work tasks, work rotation• Open and pleasant work atmosphere• Applicable values

CO-OPERATIVE PARTNERS: ICEBREAKERS, AUTHORITIES, UNIONS AND ORGANISATIONS

• Functional collaboration

Finnpilot’s strategy is updated each year. One part of the strategy is to survey the stakeholders and review their expectations.



34

The Tall Ships Races events that took place in Turku and Kotka during the summer 2017 served as an exceptionally impressive setting for our stakeholder meetings. We had the honour of piloting around a dozen large sailing ships to their docking positions along the banks of the River Aura and in Kotka’s Kantasatama harbour. At both locations, the general public had the opportunity to learn more about pi-lot boats and the work of pilots and pilot boat operators.

Moving towards a digital ageIn 2017, Finnpilot made a strategic decision, the implemen-tation of which will have great significance for the company and its stakeholders. We decided to assume our place in the digitalisation process of navigation and to lend all our expertise to the transition process. We are now in the pro-cess of actively seeking out functional technologies for navigation, also from other forms of transportation, such as road traffic. By utilising the possibilities provided by dig-italisation, we will be able to offer our customers new and better pilotage services throughout the entire period of transition and beyond.

RESPONSBILITY TO STAKEHOLDERSWe piloted the large sailing ships through the rocky Archipelago

Sea to the banks of the River Aura. The public was given the opportunity to learn more about pilot boats and pilotage work.

CUSTOMER SATISFACTION, VESSELS Satisfaction with Finnpilot

The pilot increasedsafety

2015

Responses, no. 1997 1985

Rating (1-7) 6.7 6.7

Mean value of both 6.7

2016

Responses, no. 10,319 10,269

Rating (1-7) 6.8 6.8


2017

Responses, no. 9,524 9,413

Rating (1-7) 6.8 6.8


The piloted vessels expressed that they felt that pilotage had considerably improved their safety.



35

The principal manifestation of the change in direction we have taken in our strategy will be the remote ePilot-age system that we are developing in co-operation with a broad range of experts. Our aim is to be able to test ePilotage along specific Finnish fairways from the begin-ning of 2020. The change in the Pilotage Act that will fa-cilitate the trial is currently being prepared. Even though we would like to develop and test ePilotage on our own first, we know that we cannot do it alone. For this reason, in 2017, we joined up with two networks that are shaping the digital future of transport: ITS Finland and the One Sea


ecosystem. When we joined ITS Finland, we were the first maritime operator in the network of more than one hun-dred member organisations. Within the One Sea ecosys-tem, global market leaders in their own fields are working together to achieve an autonomous maritime ecosystem for the Baltic Sea. Pilotage will play a vital role in the man-agement of the system. Finnpilot is able to enhance the development work by contributing a level of vessel ma-noeuvring and fairway expertise that cannot be provided by any other organisation in Finland. We will do our part to ensure that Finland remains at the forefront of digital maritime traffic innovation.

Development input of personnelThere could be an equal sign between Finnpilot and its personnel, but the personnel also represents one of the company’s key stakeholders. Our new strategy highlights the significance of the personnel. Our intention is for the management and personnel to work together in an atmos-phere of mutual trust.

A top-down management approach would only enable us to accomplish a fraction of the development ideas provid-ed by field personnel. If we are to genuinely develop our ac-tivities in a comprehensive manner, the management must provide the personnel with more tools to drive issues to fruition.

We want to incorporate new ways of thinking and the de-velopment resources available among our field personnel in, for example, personnel training, different development tasks and the practical implementation of new innovations and know-how. With these measures, the competencies within Finnpilot will accumulate to a degree that is many times over what could be gained by purchasing from ex-ternal sources. This new operational approach will be outlined under Finnpilot Academy, which will serve as a central forum for discussions and planning related to the collaborative development work of the management and field personnel.

We draw on the competence and expertise of our personnel in the development of our activities.

We met with our co-operative partners during the summer at the Tall Ships’ Races events

in Turku and Kotka.

We take advantage of new technologies in order to offer a better service to our customers.



36

The local expertise of the pilots is indispensable in the narrow archipelago fairways of Finland’s coastal waters. The waters are shallow and rocky, and there is no room for navigational errors. The view from the bridge of a tanker.

37 CHALLENGING FAIRWAYS38 ENVIRONMENTAL IMPACTS39 VESSELS AND EQUIPMENT40 KEY FIGURES

36


RESPONSIBILITYTO STAKEHOLDERS


37

Responsibility for the environmentA pilot who is familiar with local conditions provides a shipmaster with invaluable assistance to guarantee safe fairway navigation.

The navigational conditions of the Finnish archipelago are among the most challenging in the world. When a large ship enters the fairway from the open sea, it finds itself in a highly formidable environment: the fairways are nar-row and the waters are shallow and rocky. Maritime traffic accidents that lead to oil or chemical spills can have disas-trous impacts on the fragile nature and ecosystem of the archipelago.

Safe navigation through the Finnish fairways requires spe-cialised local expertise. Pilotage is utilised in fairway naviga-tion to avoid exceptional situations that might cause ships to run aground or collide. When vessels move through the

Pilotage ensures that ships travel our fairways safely.

Ongoing maintenance extends the service life of the pilot boats and their engines. It also helps to keep fuel

consumption and emissions in check.RESPONSIBILITY FOR THE ENVIRONMENT

fairways in a planned and controlled manner, the risk of serious environmental accidents decreases considerably.

The anomaly observations of the pilots further define and supplement the understanding of the risk factors involved in maritime traffic. Recognising threats makes it possible to react with corrective measures.

Environmental impacts of our own activitiesThe direct environmental impacts of pilotage activities are caused primarily by the use of properties and transport equipment. Energy is necessary to heat the pilot stations and fuel is necessary for vessel and vehicle transportation.

The increase in the number of pilotage assignments and piloted nautical miles (3.4 and 4.6%, respectively) in 2017 was also visible in the increased consumption and emis-sion figures, even though the consumption and emissions proportional to pilotage remained at the same level as in 2016 (change of -0.1%). The utilisation rate of our proper-ties also increased.

Finnpilot runs 21 pilot stations and substations. The heat-ing of its own properties is largely provided by renewable



38

VASTUU YMPÄRISTÖSTÄENVIRONMENTAL IMPACTS OF OUR OWN ACTIVITIES

Function, product or service Environmental consideration Environmental impact

PILOTAGE SERVICESPrevention of maritime accidents

Protection of the marine environment, prevented accidents and the social value they bring

PILOTAGE SERVICES, TRANSPORTS- pilot transports by car

Fuel, emissions, lifecycle and recycling of vehicles, sensible transports, chain of subcon-tractors

Emissions into the air, noise pollution

PILOTAGE SERVICES, TRANSPORTS- pilot transports by fast pilot boats or cutters

Use of fuel in boats and cutters, emissions created, transport and storage of fuel, lifecycle, maintenance and reutilisation of vessels, sensible transports

Impacts, emissions and noise pollution affecting the air, coastal areas, islands and waterways

PILOTAGE SERVICES, REAL PROPERTIES- accommodation of pilots and drivers in our own or leased properties

Heating, other energy and water consumption and waste management, property main-tenance and repairs, survey and utilisation of renewable energy sources

Savings in energy and water, emissions, waste manage-ment, marine environment, landscape, pilot station islands, land areas, history, local issues

PILOTAGE SERVICES, PILOT ORDER CENTRE SERVICES, INVOICING, ADMINISTRATION AND OFFICE SERVICES

Use of paper/electronic documents, eco-efficient printing, waste management, commuting to work/remote work

Paper savings, emissions

energy that is produced using geothermal and heat pump technologies. In 2017, a solar plant was built at Emäsalo pilot station, which the company is using to assess the possibility to utilise solar power to a broader degree in its activities. The majority of the stations have their own waste water treatment facility. The lighting in the ports and the yards of the stations has been changed to smart LED lights that consume less elec-tricity and improve safety.

The systematic renewal and maintenance of the transport equipment reduces the environmental load caused by their use. Vessel use monitoring has been considerably increased for the purpose of further reducing fuel consumption and en-gine wear. During 2017, the majority of Finnpilot’s vessels were outfitted with modems that attach to the engine’s CAN bus. At the same time, we implemented the automatic generation of equipment traffic statistics and route information based on positioning data. The merging of the engine and positioning data has provided a comprehensive view of the vessels’ opera-tions. The company expects the development work conducted on the basis of this new information to lead to, for example, fuel savings, the reduction of unnecessary wear resulting in en-gine failure and the better optimisation of its vessels.



39

RESPONSIBILITY FOR THE ENVIRONMENT

Pilot cutterIn 2017, Finnpilot had 33 steel-framed pilot cutters for icy conditions with an average age of 15.2 years. The life-cycle of a cutter can be extended by overhauling the main engine and cabin; in 2017, the main engine of one cutter was overhauled. Like all other pilot boats, the cutters use low sulphur fuel to minimise our exhaust emissions.

Fast pilot boatTwo new fast boats were introduced to our fleet in 2017. In 2017, Finnpilot had 30 fast aluminium-framed pilot boats in use with an average age of 12.4 years. The acquisition of boats and overhaul of existing vessels is decided each year on the basis of long-term plans. Equipment investments are made at a constant rate so that the aging of the vessels that are in heavy use will not result in a cumulative need for repairs.

HydrocopterDuring hard winters, there is also a need for equipment that can travel on the ice. For this purpose, Finnpilot has 10 hydrocopters. Cars are also used to transport pilots, particularly in the Saimaa and Bay of Bothnia areas, where the majority of the movement between the pilot stations and ports is carried out by car.

We endeavour to take full advantage of the potential service life of our vessels and equip-ment without compro-mising on safety.

Investments in new vessels and equipment are made

regularly and systematically.



40

Vessel investments (MEUR) 2013 2014 2015 2016 2017

Fast boats, cutters and the extension of the life cycle of vessels 1.1 0.9 2.2 1.9 1.5

Finnpilot’s fleet consists of

63

KEY FIGURES CONCERNING THE ENVIRONMENT

Source (emission coefficients): Statistics Finland, Fuel Classification 2014 and Energy Statistics 2013. The figures include the fuel consumed by vessels, properties and vehicles. The fuel consumption of vessels and properties is calculated on basis of changes in the annual fuel deliveries and depots. The consumption of vehicles is calculated on the basis of the actual distance driven.

fast pilot boats and cutters.

Pilot cutters 2013 2014 2015 2016 2017

Number 33 33 34 33 33

Average age 13.8 14 14.6 15.1 15.2

Fast pilot boats 2013 2014 2015 2016 2017

Number 31 31 32 30 30

Average age 10.3 11.3 11.9 12.0 12.4

Vehicles 2013 2014 2015 2016 2017

Number 38 38 40 40 42

Fuel consumption and CO2 emissions 2013 2014 2015 2016 2017

Consumption (litres/lpilotage) 73.5 73.5 70.2 72.6 72.5

CO2 emissions/pilotage (tCO2) 0,17 0,18 0,17 0,18 0,18

Change in consumption %per pilotage -0.1 % -4.5 % 3.4 % -0.1%

Consumed fuel (in millions of litres) 1.92 1.82 1.68 1.70 1.76

Total CO2 emissions (tCO2) 4,334 4,364 4,057 4,025 4,298



41

The foreign trade transport chain is constantly on the move, and a large portion of the pilotage takes place during the night. The photo shows a fast pilot boat arriving in the early morning hours to retrieve a pilot from a ship.

41

42 SPECIAL ASSIGNMENT43 COMPARISON OF PILOTAGE FEES44 CORPORATE GOVERNANCE45 BOARD OF DIRECTORS46 EXECUTIVE COMMITTEE47 TAX FOOTPRINT48 PAYABLE TAXES49 HUMAN RIGHTS AND POLITICAL INFLUENCE50 KEY FIGURES


RESPONSIBILITYTO SOCIETY


42

Responsibility to societyThe entire society is an indirect customer of Finnpilot.

Finnpilot Pilotage Ltd is a special assignment company that is entirely owned by the State of Finland. The com-pany has the exclusive statutory right to carry out pilot-age activities. For this reason, the company’s activities are governed by the demand for openness, transparency and cost-efficiency.

Pilotage promotes smooth and safe navigation. The sig-nificance of navigation to Finland’s national economy is great; the majority of our import and export goods are transported on ships. Pilotage services facilitate the transport of these goods without any unnecessary and expensive delays. Additionally, pilotage prevents many


Finnpilot serves the needs of Finland’s foreign trade.

serious accidents each year that could result in losses of tens of millions of euro. In a broad sense, the entire Finn-ish society is a customer of Finnpilot.

Objectivity and cost-efficiency of services Finnpilot provides its customers with consistent and reliable pilotage services in all pilotage areas. In accord-ance with the Pilotage Act, pilotage fees shall be rea-sonable considering the costs incurred and a reasonable return. The pilotage fee is based on a fixed unit price and is determined based on the tonnage of the vessel in question and the distance to be piloted (pilotage fee calculator).

Pilotage activities in the Saimaa region are governed by the obligation to provide commercially unprofitable services, so the pilotage fees in these areas are based on a reduced unit price.

Maritime transportation is vital to Finland’s national economy. The safety of maritime traffic, in turn, helps to ensure a better tomorrow for the nature in our marine and archipelago areas.


https://www.finnpilot.fi/en/order-pilot-2/pilotage-fees

https://www.finnpilot.fi/en/order-pilot-2/pilotage-fees


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Changes in the fees are notified no later than three months prior to their taking effect, which, in practice, means by the end of September. Prior to the legislative amendment in 2017, the fees had to be confirmed six months in advance. The decision regarding pilotage fees is made by Finnpilot’s Board of Directors. The fees did not need to be increased for 2018 due to the positive development in the cost-efficiency of the activities and the increased number of pilotage assignments.

Finnpilot has been tracking the international pricing of pilotage services since 2005. On the basis of its com-parison, Finland’s pilotage fees are among the lowest in the Baltic Sea region.

The pilotage fee is calculated based on a piloted dis-tance of seven nautical miles from the sea into port. The comparison is only indicative of the actual fees, since pi-lotage fee practices differ from one country to the next.

Comparisons showed that Finland’s pilotage prices are the second lowest after Denmark.

PILOTAGE FEE COMPARISON 2013–2017Combined calculation of pilotage fees for sample vessels in relation to Finland’s prices

100%122%

199%

95%108%

136%

185%

Finland Sweden Norway Denmark Estonia Germany Netherlands0.0

0.5

1.0

1.5

2.0

2013 2014 2015 2016 2017

2.5

No increases were made to the pilotage fees for 2018.



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Corporate governanceFinnpilot Pilotage Ltd is a State-owned limited liability company. Additionally, Finnpilot owns 60% of Ice Advi-sors Ltd, which provides maritime operators with ice nav-igation services.

The governance of State-owned companies is regulat-ed by the State Holdings and Ownership Steering Act (1368/2007). The administration of Finnpilot is based on the Limited Liability Companies Act, and the company’s activities are guided as stipulated in the Pilotage Act and Government Decree on Pilotage.

The Prime Minister’s Office is responsible for Finnpilot's ownership steering. The owner exercises its power of decision at annual general meetings. The annual general meeting decides on issues that are deemed relevant by virtue of the Limited Liability Companies Act. The annual general meeting elects the chair and other members of the Board of Directors. The members of the Board shall have expertise in Finnpilot’s field of activities, manage-ment or business economics, and they shall be independ-ent in the manner required with regards to competition.

The Board of Directors oversees the administration of the company and the appropriate arrangement of the company’s activities, guides and advises the company’s activities, elects the CEO and top management, super-vises the management and issues decisions on key mat-ters in terms of the company’s business activities. The

Board of Directors has established personnel and audit committees to support its activities. The members of the committees are listed in the annual review of the Board of Directors.

The Chair of the Board of Directors is the immediate su-pervisor of the CEO. The CEO reports on the activities of the company to the Board of Directors. The CEO is responsible for achieving the objectives set for the busi-ness activities. Finnpilot’s Executive Committee is a body that assists the CEO. The members of the Executive Committee are the directors of the individual units within Finnpilot. The company’s Head of Communications par-ticipates in the work of the Executive Committee.

Finnpilot Pilotage is a State-owned special assignment company, whose governance is based on

the Limited Liability Companies Act (624/2006).



http://www.iceadvisors.fi/

http://www.iceadvisors.fi/


45

Board of Directors

RESPONSIBILITY TO SOCIETY Jouni Räty

PERSONNEL REPRESENTATIVEb. 1970, Pilot, Bachelor of Marine Technology (Master Mariner)• Board member since 2014• Finnpilot Pilotage Ltd, Pilot 2011–• Finnish State Pilotage Enterprise Finnpilot, Pilot 2005–2010• Neste Oy/Fortum Oil and Gas Oy, on-board and shipping company office service 1995–2005

Ville Haapasaari

MEMBER OF THE BOARDb. 1971, M.Sc. (Forestry), B.A.• Board member since 2017• Finavia Plc, Airport Director, Helsinki Airport 2012–• Finnlines Plc, 1998–2012 (Line Manager, HansaLink 2010–2012, Vice President, Baltic Sea Liner Services 2008–2010, Vice President, Sales 2005–2010, Key Account Manager 2001–2005)• Airport Real Estates Plc, Board member ekonomisti 2007-2010

Johanna Karppi

MEMBER OF THE BOARDb. 1968, LL.M. with court training• Board member since 2014• Suomen Terveystalo Oy, Senior Vice President, HR and Legal 2007–• Rautaruukki Oyj, Director, Corporate HR 2004–2007• Orion Corporation, HR Manager 2001–2004• Confederation of Finnish Construction Industries, Lawyer

Aki Saartia

DEPUTY PERSONNEL REPRESENTATIVEb. 1975, Pilot boat operator• Board member since 2017• Finnpilot Pilotage Ltd, Pilot boat operator 2011–• Finnish State Pilotage Enterprise Finnpilot, Pilot boat operator 2006–2010

Seija Turunen

CHAIR OF THE BOARD OF DIRECTORSb. 1953, M.Sc. (Economics and Business Administration) Professional Board Member• Board member since 2015• Finnlines Plc, Deputy CEO, CFO 2007–2013• Finnsteve Companies (part of the Finnlines Group), Managing Director 2010–2013• Finnlines Plc, Chief Financial Officer 1992–2007• Elisa Plc, Board member• Pihlajalinna Plc, Board member

Tuula-Riitta Markkanen

MEMBER OF THE BOARDb. 1958, Ph.D., International Business and Strategy• Board member since 2017• Muutosjohdon akatemia (‘Change management academy’). (Ministry of Social Affairs and Health, Ministry of Finance, HAUS Finnish Institute of Public Management Ltd), Project Director• Krita Corporate Identity Oy, Senior partner; Change management and strategic communi- cation consulting for, among others, the follow- ing clients: Sanoma Corporation, Nokia Solutions, Metso Corporation, Kemira Plc, Ahlström Corporation, Ministry of Social Affairs and Health• Tapio Oy, Board member

Pekka Hurtola

DEPUTY CHAIRb. 1959, LL.M.• Board member since 2017• Prime Minister’s Office, Ownership Steering Department, Senior Financial Counsellor 2014–• Finavia Plc, Director, Corporate Development and Strategy 2006–2012• Ministry of Transport and Communications, Ministerial Counsellor, ownership steering tasks 1997–2006• Boreal Plant Breeding Ltd, Board Member• Suomen Lauttaliikenne Oy (Finferries), Board member• Mint of Finland Ltd, Board member



46

Executive CommitteeRESPONSIBILITY TO SOCIETY

Timo Siren

UNIT DIRECTOR, ECONOMYb. 1966, M.Sc. (Economics and Business Administration)• Executive Committee member since 2012• Finnpilot Pilotage Ltd, Unit Director, Economy 2011–• Finnish State Pilotage Enterprise Finnpilot, Business Controller 2010• Tyco Electronics Finland Ltd, Nordic Finance, Manager 1996–2010• Haka Autorent Ltd, Head of Administration 1993–1994• Ice Advisors Ltd, Board member

Kari Kosonen

CEOb. 1965, M.Sc. (Technology), Master Mariner • Executive Committee member since 2010• Finnpilot Pilotage Ltd, CEO 2017–• Finnpilot Pilotage Ltd, Pilotage Director 2011–2017• Finnish State Pilotage Enterprise Finnpilot, Pilotage Director 2010• Finnish Maritime Administration, Manager of VTS Centre, Senior Inspector, Division Manager, Deputy Director 1996–2010• Various duties at sea (primarily deck officers) 1987–1996• Ice Advisors Ltd, CEO 2014–2017• Ice Advisors Ltd, Chairman of the Board 2017–

Sanna Sonninen

UNIT DIRECTOR, PILOTAGEb. 1970, M.Sc. (Technology), Master Mariner• Executive Committee member since 2017• Finnpilot Pilotage Ltd, Unit Director, Pilotage 2017–• Finnish Transport Safety Agency (Trafi), Head of Department, Director 2010–2017• Finnish Maritime Administration, Director, Development Manager, Senior Officer 2007–2009• VTT, Research Scientist 2001–2007• VTS Centre, Operator 2001• Neste Shipping, Finnlines, different duties at sea (primarily deck officers) 1990–2000• Ice Advisors Ltd, CEO 2017–• Meritaito Ltd, Board member

Kati Virtanen

UNIT DIRECTOR, PERSONNEL AND LEGAL AFFAIRSb. 1967, LL.M. with court training, LL.Lic.• Executive Committee member since 2012• Finnpilot Pilotage Ltd, Unit Director, Personnel and Legal Affairs 2016–, Personnel Director 2012–2015• Association of Finnish Lawyers, Lawyer, Negotiation Manager 2003–2012• Academic Engineers and Architects in Finland TEK, Ombudsman 2000–2003• Trade union KTV (merged into the Trade Union for the Public and Welfare Sectors JHL), Lawyer, 1998–2000• District Court of Lappeenranta, Notary 1997

Aki Marjasvaara

UNIT DIRECTOR, TRANSPORTATIONb. 1978, Master of Engineering (Industrial Management), Master Mariner• Executive Committee member since 2014• Finnpilot Pilotage Ltd, Unit Director, Transportation 2014–• Port of Loviisa, Managing Director 2008–2014• Port of HaminaKotka Ltd, Safety Inspector 2004–2005• Third, Second and First mate at sea 2003 and 2005–2007



47

amount of the energy tax included in the price of electric-ity has been calculated on the basis of the value of acqui-sitions in accordance with the average price and share of the price represented by the electricity tax as statistically reported by the Energy Authority. The excise tax on fuel is not reported in the calculations, because the company receives, upon application, a refund of the excise tax. The calculated income tax is based on the appropriations in ac-cordance with the valid corporate income tax rate.

Finnpilot’s tax burden totalled -0.6 MEUR in 2017.


Our tax footprint totalled 12.9 million euro.

Taxes and tax-like charges related to Finnpilot’s activitiesThe tax footprint refers to the tax revenue and tax-like charges accrued by society as a result of the company’s activities. In its tax reporting, Finnpilot Pilotage Ltd com-plies with the country-specific tax reporting guidelines for companies in which the State is a majority shareholder.

The company has no operations in any countries classified as tax havens, nor does the company utilise any interna-tional dimensions in its tax planning for the purpose of minimising its taxation. The company’s taxes are paid in their entirety to Finland. Finnpilot also does not pay any profits, dividends or interest outside of Finland. The com-pany has no pending appeal processes related to taxation.

The company’s turnover in 2017 was 38.1 MEUR with an operating profit, before taxes, of 2.7 MEUR. The turn-over for 2017 includes a 3.4 MEUR subsidy for pilotage in the Saimaa region. Over the past four years, Finnpilot has invested a total of 9.1 MEUR in machinery, vessels and

equipment and properties. The share of investments in 2017 totalled 2.1 MEUR.

The calculation of the company’s tax footprint takes into account those taxes and tax-like charges which Finnpilot has a statutory obligation to pay or collect. Finnpilot’s tax footprint was a total of 12.9 MEUR in 2017. Of this figure, the share of taxation was 0.5 MEUR, tax-like charges relat-ed to the personnel totalled 6.2 MEUR, and the employees’ withholding tax amounted to 6.2 MEUR. The company’s share of statutory pension insurance contributions was 3.5 MEUR and other social security expenses amounted to 1.0 MEUR.

In addition to direct and indirect taxation, the reporting of Finnpilot’s tax footprint also includes tax-like charges re-lated to the personnel and the tax withheld from salaries paid to the employees. The reported taxes are based on information gathered in the company’s accounting and the report includes any taxes from the past five years that totalled a minimum of five thousand euro per year. The

Our company’s accrued taxes are paid in their entirety to Finland.



48


Payable taxes (1,000 €) 2013 2014 2015 2016 2017

Employer’s contributions 4,816 4,660 4,760 4,834 4,470

Income tax, computational 925 918 1,062 1,134 1,114

Income tax 314 245 190 226 530

Energy taxes 30 34 50 54 48

Real estate taxes 20 28 27 26 27

Vehicle tax 16 15 14 14 15

Asset transfer tax 0 12 0 0 0

Insurance premium taxes 11 11 10 10 14

Total payable taxes 6,131 5,922 6,113 6,299 6,218

Total of payable taxes for 2017(Total: 6.2 MEUR)

Reported taxes (1,000 €) 2013 2014 2015 2016 2017

Value added tax, net -1,188 2,085 -434 -1,151 -1,232

Withheld tax from salaries 6,553 6,481 6,476 6,355 6,159

Employees’ social security contributions 1,319 1,376 1,458 1,568 1,739

Total reported taxes 6,683 9,943 7,500 6,771 6,666

Reported taxes 2017(Total: 7.9 MEUR)

Tax footprint (1,000 €) 2013 2014 2015 2016 2017

Share of taxes 127 3,348 920 313 515

Personnel-related 6,134 6,036 6,218 6,402 6,209

Withheld taxes 6,553 6,481 6,476 6,355 6,159

Total tax footprint 12,814 15,865 13,613 13,070 12,884

Tax burden -798 2,429 -142 -821 -599



49

Human rights and political influenceFinnpilot Pilotage Ltd demonstrates its respect for hu-man rights in all its activities. Our employees have the right and freedom to organise, form opinions and receive equal treatment. Furthermore, they are entitled to suffi-cient rest and time off.

Nearly one hundred per cent of our acquisitions are made from domestic suppliers. Only some of our IT services are provided by a party outside of Finland.

We adhere to ethical guidelines that forbid the company or any persons in its service from accepting illegal bene-fits or bribes. As a company, we are not affiliated with any political party.

Nearly all our acquisi-tions are made from Finnish suppliers.

RESPONSIBILITY TO SOCIETY Piloted vessels transport 100 million euro worth of goods

each day. Containers in the Port of HaminaKotka.



50

KEY FIGURES CONCERNING SOCIAL RESPONSIBILITY

Key financial figures (1,000 €) 2013 2014 2015 2016 2017

Turnover 37,634 36,815 36,808 36,497 38,083

Operating profit 2,453 2,003 1,661 1,517 2,634

Profit/loss for the financial year 958 943 775 931 2,201

Operating profit, 5 of turnover 6.5% 5.4% 4.5% 4.2% 6.9%

Return on investment, % 12.7% 11.4% 9.9% 9.0% 16.7%

Solvency ratio % 64.0% 65.4% 70.1% 70.7% 69.4%

Quick ratio 1.1 1.3 1.3 1.4 1.2

Cash flow to stakeholders(1,000 €) 2013 2014 2015 2016 2017

Customers

- turnover 37,634 36,815 36,808 36,497 38,083

- other income from operations 4 109 13 79 108

- income in affiliated companies 0 0 0 0 0

Goods suppliers

- material and service acquisitions -2,506 -2,447 -2,005 -1,905 -2,353

- other operating costs -4,518 -4,734 -4,767 -4,769 -4,832

Personnel

- salaries and fees -20,816 -20,694 -20,962 -20,836 -20,729

- pension costs -3,859 -3,715 -3,868 -3,720 -3,565

- social security expenses -1,122 -1,086 -1,151 -1,330 -885

Total -25,797 -25,494 -25,981 -25,885 -25,180

Public sector

- taxes (income tax) -314 -245 -190 -226 -530

Support and donations -5 -5 0 -2 0

Dividends to shareholders 0 -239 -236 -310 -4,000

Financing costs -56 -24 -13 -8 -6

Funds set aside for the development of activities 4,442 3,736 3,629 3,471 1,289

Investments 1,835 1,744 2,715 2,462 2,147

Pilotage subsidy for Saimaa 2013 2014 2015 2016 2017

State subsidy (MEUR) 3,906 3,915 3,878 3,824 3,446

Cost-efficiency of activities 2013 2014 2015 2016 2017

Yield/pilotage assignment 1,444 1,480 1,534 1,556 1,570

Yield/piloted mile 78 78 80 83 83

Cost/pilotage assignment -1,350 -1,400 -1,465 -1,491 -1,450

Cost/piloted mile -73 -74 -76 -80 -77

Profit/pilotage assignment 94 81 69 65 120

Profit/piloted mile 5 4 4 3 6

Our operating profit increased to 2.6 million euro.



51

www.finnpilot.fi

Finnpilot Pilotage LtdKansakoulukuja 3, 4th floor, FI-00100 HelsinkiTelephone: +358 (0)29 52 53000Fax: +358 (0)29 52 53001E-mail: [email protected]@finnpilot.fi

ANNUAL REPORT 2017Editing: Finnpilot Pilotage Ltd / Pekka Karppinen, KlangaPhotos of individuals: Petri WäänänenOther photos: Ilkka Sipilä, Olli Taipale, Sari Turkkila, Petri WäänänenDesign and layout: ViaMaria


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