Turku safeguards Linnanniemi’s major projects with schedule changes
The City of Turku will reschedule the development of Linnanniemi and major projects in the area. The start of the berth investment related to the passenger travel port will be postponed by one year and the rental agreement for the field areas used for port traffic will be extended until the end of 2026.
By changing the schedules, Turku wants to ensure that the new passenger terminal, port structures and the construction of the Museum of History and the Future stays within the budget. The background influences include the increase in steel prices and construction costs due to the war in Ukraine.
The planning of all projects in the city centre and the port will continue without interruption with the partners even in the new situation.
“The City of Turku harmonises the schedules of major Linnanniemi projects in order to manage costs and improve functionality,” summarises Jarkko Virtanen, Director of Corporate Governance of Turku.
The Turku City Board decided on 6 June that Turku will start negotiations with the Finnish Transport Infrastructure Agency on the transfer of the port railway line from its current location so that it leads to the port from north. Postponing the schedule will give a time for the implementation of the new electrified passenger rail line from the Muhkuri railyard to Turku port.
The start of the berth contract to be postponed
Preparations to postpone the schedules have been initiated by the Board of Directors of Port of Turku Ltd, which decided in its meeting on 14 June to suspend the procurement of the new Viking Line ship site and postpone the start of the berth contract. The contract prices of the tenders received exceeded the initial cost estimate of the pier contract.
A significant part of the Linnanniemi area has been leased for port operations. The current lease agreement between the City of Turku and Port of Turku Ltd is for a fixed term until the end of 2025. At its meeting, the Board of Directors of Port of Turku Ltd also decided to propose to the City of Turku that the lease agreement for the land used by the current port traffic be extended by one year until the end of 2026.
The entire project of the Turku port terminal will continue unchanged, with the exception of the berth contract and the repair of Tallink Silja berth.
“These two parts of the project will be postponed by one year and thus the completion of the entire project will be postponed by one year. All other design contracts and similar contracts will continue on schedule. The construction of the terminal building should still begin in 2024,” explains Erik Söderholm, Managing Director of Port of Turku Ltd.
More than 15 kilometres of 700 millimetres thick steel poles will be used for the upcoming Viking Line berth. The price of steel has increased significantly as a result of the Ukrainian war and the contract price would currently exceed the budget.
“We have therefore decided to reject the offers and will reopen the pier contract in about a year’s time, hoping that the market price for steel will fall,” says Erik Söderholm, Managing Director.
The terminal building was planned to be completed in 2026 and will now be completed in 2027. The new passenger terminal will be designed by PES-Arkkitehdit Oy.
For the City of Turku, the development of the entire port area is a very significant and important project. The costs must not increase uncontrollably, so the schedules must be modified. This will safeguard the development of both the passenger travel port and the entire Linnanniemi.
“We already adapted our operations to the changed situation as soon as the war started, and the costs began to rise. We are looking for flexible solutions and I believe that the timeout will give us a better opportunity to manage the project as a whole. In addition to better cost-effectiveness, we strive to create locally revitalising elements through time allocation under the threat of an economic downturn,” says Jarkko Virtanen, Director of Corporate Governance.
Building the Museum of History and the Future will also be postponed by one year
The change in the passenger travel port schedule has a direct impact on the implementation schedules of other projects in the Linnanniemi area. The target schedule of the Museum of History and the Future, which will be built on the land that will be freed from the use of port traffic, will be reviewed to reflect the change in the schedule of the passenger travel port project.
As a result of the changed situation, the project plan for the museum building will likely be decided by the Turku City Council during 2026, and the construction will begin in 2027. The room for manoeuvre included in the previous target schedule will enable the completion of the museum building in 2029.
“The implementation of the museum was decided upon to celebrate the anniversary of Finland’s independence by the City of Turku. The completion of the building is part of Turku’s 800th anniversary celebration, and we try to achieve this goal despite the changed circumstances,” says Joanna Kurth, Project Manager at the Museum of History and the Future.
The planning of the Museum of History and the Future is progressing as expected. On 27 September 2021, the Turku City Board approved the objectives of the change in the detailed plan of the Museum of History and the Future, and the draft plan will be sent for processing, considering the City Board’s resolution of 6 June on the port railway.
The overall situation of Linnanniemi will be assessed for all related activities in autumn 2022 and again in one year. Turku is prepared to launch the different areas quickly once the cost pressures have hopefully lapsed.
Further information: Jarkko Virtanen Director of Corporate Governance, City of Turku email@example.com tel. +358 (0)50 559 0222
Erik Söderholm Managing Director, Port of Turku Ltd firstname.lastname@example.org tel. +358 (0)50 553 3100
Joanna Kurth Project Manager, Museum of History and the Future City of Turku tel. +358 (0)50 371 0259 email@example.com