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Scandinavian Rail Development 2013 - Anders Björnström
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Scandinavian Rail Development 2013 - Anders Björnström

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  • 1. Logistics is key for succesful growth 2013-04-16EFFICIENT LOGISTICS – KEY TOSUCCESSFUL GROWTHAnders BjörnströmManaging Director LKAB Malmtrafik ABScandinavian Rail 2013-04-16
  • 2. A 200 YEAR OLD CHALLENGEIn 1736 the surveyor Anders Hackselldrew the first maps of the two prospectivemining mountains in northern Sweden.For a long time it was considered as animpossible project to break the iron orearound Kiruna and Malmberget.
  • 3. THE ORE RAILWAY MALMBANAN-OFOTENBANEConstruction of Malmbanan – Ofotbanen ore railway to the Atlantic sea was the basis for Lestablishment and possibility to be a competitive company. The railway was also the basisthe establishment of Kiruna and Narvik communities Foto: Hilde L
  • 4. 124 YEARS OF LOGISTICS1888 The first ore train with 40 wagons arrived to Luleå1890 LKAB company was established1903 ”Malmbanan” railway from Kiruna to Narvik was inaugurated1996 LKAB established subsidiary ore traffic company1996 New harbour in Luleå2000 Increased axel load to 30 tonnes2004 New IORE locomotives and wagons2009 New harbour structure in Narvik2012 New railway opened in Kiruna
  • 5. Logistics is key for succesful growth 2013-04-16 THE IRON ORE BUSINESS AND LKAB LKAB Competitors• 100% Swedish company• 4200 employees, about 650 abroad• 90% of EU:s iron ore production• Turnover 2011: 31,1 billion SEK• Operating profit 2011: 14,7 billion SEK• Transports > 27 Mton 2012• New employees: about 1250 persons 2012-2015
  • 6. Logistics is key for succesful growth 2013-04-16IRON ORE Narvik Harbor (SILA) Kiruna Mine andOPERATIONS processing Svappavaara Ore Railway Mine and Processing Malmberget Mine and Processing Luleå Harbor and head office
  • 7. Logistics is key for succesful growth 2013-04-16LKAB37 – HEADED FOR 35% GROWTH
  • 8. Logistics is key for succesful growth 2013-04-16 LKAB operates right now one of the largest industrial projects i SwedenOngoing and approved investments in Malmfälten:30 billion SEK and about 5 billion SEK in the near future!
  • 9. Logistics is key for succesful growth 2013-04-16 Mertainen Start planned 2015 Gruvberget In operation May 2010 -Jun E10 against Kiruna 2012. Restart december 2012 Leveäniemi Malmbanan Start planned 2015 railroadSVAPPAVAARA FIELD- THE BIGGEST IRON ORE PROJECT I EUROPE
  • 10. Logistics is key for succesful growth 2013-04-16 Narvik 169 km Kiruna 40 km 100 km Svappavaara Malmberget 204 kmWORLD CLASS LOGISTICS Luleå
  • 11. Logistics is key for succesful growth 2013-04-16A CHALLENGE NORTH OF THE ARCTIC CIRCLE
  • 12. Logistics is key for succesful growth 2013-04-16LKAB RAILWAY CAPACITY • Northwest: 10 trains • Southeast: 5 trains 2012 • >31 Mton per year • Northwest: 12 trains • Southeast: 6 trains 2015 • >37 Mt per year • Northwest: 14 trains • Southeast: 8 trains 2020 • >44 Mt per year
  • 13. Logistics is key for succesful growth 2013-04-16LKAB HAS INVESTED > 5 BILLION SEKIN A NEW LOGISTIC SYSTEMIncreased efficiency:• Increased cargo weight – 30 tonnes axle load• Uniform locomotive- and ore wagon structure• Only long trains (68 cars)• Efficient terminals and ports
  • 14. Logistics is key for succesful growth 2013-04-16IORE LOCO:SNumber of locos(Mars 2014): 17 (today 13)Loco 14: may 6 2013Loco 15: sept 2 2013Lok 16 december 2 2013Lok 17 mars 3 2014
  • 15. LKAB Malmtrafik AB 2012-09-17FANOO in traffic 2012-03-01: 1090Final delivery september 2013: 1134 15
  • 16. LULEÅ HARBOURDepth: 12 mNumber of Silos: 3Storage/Silo: 35 000 tonnesNumber of Vessels/Year: About 440Shipped Products/Year: 6 MtDestinations: About 90 % to Sweden and Northern Europe
  • 17. NARVIK HARBOURDepth: 27 mNumber of Silos: 12Storage/Silo: 105 000 tonnes pellets, 130 000 tonnes finesNumber of Vessels/Year: About 200Shipped Products/Year: 19 MtDestinations: Europe, Middle East, US and Asia
  • 18. Logistics is key for succesful growth 2013-04-16WORLD CLASS LOGISTICSYSTEM
  • 19. NEW HARBOUR AND SILOS Logistics is key for succesful growth 2013-04-16
  • 20. GROWTH CHALLENGES• Capacity on Malmbanan-Ofotenbanen• Uncertainity about timing for permission handling• Skills supply• Attractive communities• Housings Foto: Hilde L
  • 21. THANK YOU FOR LISTENING!