Ore Railway a vulnerable bottleneck for LKAB

Fire at the Torneträsk station has exposed weaknesses in the Ore Railway. LKAB is losing millions.

A signal substation was knocked out, which halted ore traffic for several hours. Transport capacity was subsequently limited. In the space of a month, the company will miss some 20 percent of its deliveries. Delays in rail transport can be expected for the rest of the year. It will take six months for Trafikverket to replace the damaged signal equipment. There is no reserve capacity. LKAB is losing deliveries valued at several hundred million kronor as a result of these problems. In addition, the company faces costs for delays to incoming vessels at Narvik, as well as costs for shipping from buffer stocks.

Damaging to LKAB

“These conditions place LKAB in an unacceptable situation. We are losing hundreds of millions and our reputation as a reliable supplier is at risk. This damages LKAB in the marketplace,” says LKAB president Lars-Eric Aaro.

The situation is aggravated by a serious lack of reserve capacity for traffic on the Ore Railway.

“The Ore Railway is filled to the breaking point with ore traffic and other traffic. There is no way to compensate by running more traffic to make up for the losses. We cannot operate more trains. The meeting places for trains are too few and too short, and the signal system is highly vulnerable,” says LKAB planning manager Tage Sennland.

LKAB’s planned production increases, from 30 to 40 million tonnes, with the opening of new mines, cannot be realized if transport capacity continues to lag. Transport capacity is inhibiting LKAB’s development.

No reserve capacity

There are at present plans for investment in rail sidings and a new European standard signal system, but if there are no substations with reserve capacity, these measures will be to no avail. Besides, there is no room for more trains to compensate for the disruptions.

“Therefore, the transport administrations must speed up infrastructural investments. LKAB cannot produce more ore and pellets than we can ship,” says Lars-Eric Aaro.

LKAB has already taken the issue to Swedish infrastructure minister Ǻsa Torstensson.

“LKAB is pushing for more and longer rail sidings for meetings, partial dual tracks, and more reliable signal systems. A transport system that hinders industrial development is damaging for Sweden,” says Lars-Eric Aaro.

The Ore Railway is Sweden’s largest rail transport system. Between Luleå and Riksgränsen, the Ore Railway alone accounts for 35 percent of the country’s rail freight traffic.

For further information, please contact: Tage Sennland, tel. +46 (0)980 71000.