Transportation dev needed in Arctic for tourism boom

Speakers on the second and last day of the 8th Arctic Business Forum (ABF) on Thursday emphasised development of transportation infrastructure to meet the demand of the ongoing huge expansion of tourism in the Arctic region.

They also pointed out the necessity of investment in forest, steel and mining industries in the region.

“Finland lacks clear vision and actions in transport network development. Seaborne trade volume accounts for 80% of all transport tonnage in the world, most of which is loaded in China. So Arctic region has many possibilities of development,” said Port of Kemi Chief Executive Officer Jaakko Rantsi while reviewing the maritime transportation and seaborne trade in 2015 and 2016.

Rantsi appreciated Hanne Junnilainen, special adviser at Kiila Consulting, for discussing the tourism potential and new business models for Arctic from the aviation perspective.

Two keynote sessions were held on the Thursday morning. The first session was focused on the infrastructure and transportation development in the Arctic region.

Arctic Analyst Managing Partner Mikå Mered gave an overview of the needs and potential in this area. He said the total infrastructure need in the Arctic area is around 1,000 billion US dollars.

Taking part in the session, Junnilainen termed aviation a volume business and the engine of economy. “The world’s trade and tourism industry always go hand in hand with air transportation. However, although normally it is the air transportation that drives tourism, in Lapland, the case is reverse. The tourism industry is booming in Lapland, but the lines are limited. More than 70% of the airports in the Arctic are owned by the states. All of these leave business potentials under-utilized,” said Junnilainen, adding that, in the last five years, one-third of European regional carriers have gone out of business.

The second session on the concluding day focused on the latest investment projects in the European Arctic region including those in forestry, steel and mining industries, and transport connections with representatives from Russia and Iran taking part in the discussion.

Matti Nojonen, a professor of Chinese culture and society at the University of Lapland, discussed the Chinese business culture and challenges for Chinese economic expansion to the Arctic.

Nojonen said the region has tremendous business potential from China, but the political tension between China and Russia has to be considered in this case.

Murmansk Region Chamber of Commerce and Industry President Anatoly Glushkov spoke on investment projects in the Murmansk Region. He pointed out that there are 31 priority investment projects worth 500 billion Russian rubles ongoing in this region.

Speaking in the session, Iranian Ambassador Kambiz Jalali discussed the business and investment potential in Iran. Terming Iran a tax heaven and a resource-rich and labour-rich economy, Jalali talked about Iran’s transit potential, bright tourism future as well as his hope for cooperating with Finland in the water and environment fields.

House of Lapland Chief Executive Officer Sanna Tarssanen shared some business success stories in the Arctic. In order to succeed, it is necessary to lower the seasonality, provide better logistics and connectivity, and stay sustainable, she said in conclusion.

Taking part in the session, Digipolis Kemi Project Manager Seppo Ahola presented their achievements in circular-economy and bio-economy.

Around 100 people registered for the two-day forum compared to around 80 people taking part in last year’s ABF.

At the end of the forum in the afternoon the participants made a field trip to Stora EnsoVeitsiluoto Mill.