Finnish Port Association’s centenary
In the late 1800s, port maintenance was a municipal task in cities and market towns.
Ports were some of the oldest commercial establishments to be found in cities, and the income they generated was of fundamental importance to urban economies. Port administrations started to spring up in the early 1920s. For example, port administrations were set up in Helsinki, Turku and Pori in line with the Nordic model. The Finnish
Port Association was established on 23 January 1923 at the Stock Exchange Building in Helsinki. In addition to promoting cooperation between port administrations, one of the association’s tasks was to coordinate pricing at Finnish ports, thereby restricting price competition. The founders hoped that ports would compete more on the provision of services rather than on prices.
“The establishment of the Finnish Port Association was also motivated by a need to standardise operating models within the sector, such as creating regulations for those visiting and using ports. Throughout its history, the Finnish Port Association’s activities have also included work to develop legislation within the sector,” said Annaleena Mäkilä, CEO of the Finnish Port Association, when addressing guests at the association’s centenary celebrations at the Stock Exchange Building.
“Setting prices was one of the Port Association’s main tasks all the way up until the 1980s. This approach is now relegated to history. These days, the Port Association is at the service of its members and handles joint advocacy within the sector. The ban on restricting competition applies to both member ports and the Port Association itself,” says Mäkilä.
“Only 50 years ago, we were battling over whether the Finnish port network should include state-owned ports and whether the State should have a centralised port policy.
Today, port management heavily relies on market-based operations and it is essential that the State treats all ports equally. This is particularly evident in investments in the fairway network, which are always a two-way street: a section of the fairway is financed by the port company and a section is owned by the State,” said Ville Haapasaari, CEO of the Port of Helsinki, in his speech.
“The Port Association has a clear vision: its basic mission is to improve the operating conditions for ports and thereby promote its members’ competitiveness. It’s natural for the entire industry to gather under this umbrella,” says Haapasaari.
Our industry is totally dependent on smooth and competitive maritime transport.
“Strengthening the resilience of ports in multiple ways and forging new partnerships to meet NATO requirements will be on the agenda for port companies’ management in the coming years.”
Haapasaari also reminds us of the important role that Finnish ports are playing in the ongoing energy transition.
“Finland’s cargo-based ports will become energy hubs and part of the energy distribution network. This transformation will inevitably present ports with new strategic choices to make.”
