Vehicle imports increasing

One of the Port of Södertälje’s specialisations and largest operations is vehicle imports. There is a great deal happening on the Swedish automotive market at the moment, with new taxation regulations and test methods. These new regulations affect consumer purchasing patterns, which in turn impacts on logistics flows through the port.

– Approximately 120,000 imported vehicles pass through the Port of Södertälje each year; so, naturally, we notice purchasing trends in the automotive import market, says Per Fredman, VP of sales and marketing at the Port of Södertälje.

– August was a weak month but since then we have seen a significant upturn in September, continues Per.

New test method

The Worldwide Harmonised Light Vehicle Test Procedure (WLTP) entered into force on 1 September 2019.

WLTP is the new test method for measuring the exhaust emissions from internal combustion engines and, thereby, CO2 emissions. Initially introduced for passenger cars on 1 September 2018, one year later requirements are once again being tightened.

– Here at Volkswagen we have been greatly affected by the new taxes and procedures introduced over the past two years, says Daniel Wennerqvist, head of car logistics, finance & administration at Volkswagen Group Sverige AB, who also mentions that the new bonus-malus taxation system that entered into force in Sweden on 1 July last year has affected customer purchase patterns.

Large volumes

Volkswagen has been importing vehicles into Sweden via the Port of Södertälje since 1948 and 53 percent of their total vehicle imports now arrive via the port.

– Our volumes have increased sharply; we import 110,000 vehicles every year, explains Daniel Wennerqvist.

The Port of Södertälje has three top-class ramps for handling RoRo cargo, as well as world-class marshalling areas.

Increased production

– We have increased our production rate in order to meet all vehicle orders before the turn of the year, when the new regulations will come into effect. The fourth quarter of 2019 will be an intensive period for imports, says Daniel Wennerqvist.

This places demands on logistics at the Port of Södertälje to ensure the flow of goods; something that Daniel is not concerned about.

– We are extremely satisfied with our collaboration with the Port of Södertälje. All of the port’s stakeholders cooperate splendidly to maintain the flow, which is important when large volumes need to be handled in a short space of time.