LKAB’s ability to compete on the global market is based on the fact that the company is one of the world’s foremost logistics companies, both above and below ground.
Because it only has relatively small ore storage capacity at its harbours one of LKAB’s most important goals is to deliver ore in quantities that are as large and evenly timed as possible. Once the iron ore has been extracted with great efficiency deep underground, hoisted to the surface and processed, the next stage is LKAB’s logistics procedure.
Transport by train from the mines and processing plants via the ore railway to the harbour storage depots in Luleå and Narvik is the backbone of LKAB’s logistics system and business operations. During the 2000s LKAB invested more than SEK 4.5 billion in track improvements, new ore wagons and locomotives and a new automated harbour storage area – SILA – in Narvik in order to handle a steady increase in the production of iron ore products. This has resulted in capacity increase of 60 per cent on the ore railway, while the storage capacity in Narvik has increased from 16 million tons to 19 million.
Following the investment of an additional billion in new locomotives and wagons LKAB has a transport capacity on the ore railway of 40 million tons per year.
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