scandinavian rail development 2013 - anders björnström
TRANSCRIPT
EFFICIENT LOGISTICS – KEY TO
SUCCESSFUL GROWTH Anders Björnström Managing Director LKAB Malmtrafik AB
Scandinavian Rail 2013-04-16
2013-04-16
Logistics is key for succesful growth
Eng
A 200 YEAR OLD CHALLENGE
In 1736 the surveyor Anders Hacksell
drew the first maps of the two prospective
mining mountains in northern Sweden.
For a long time it was considered as an
impossible project to break the iron ore
around Kiruna and Malmberget.
Eng
Foto: Hilde Lillejord
THE ORE RAILWAY MALMBANAN-OFOTENBANEN
Construction of Malmbanan – Ofotbanen ore railway to the Atlantic sea was the basis for LKAB
establishment and possibility to be a competitive company. The railway was also the basis for
the establishment of Kiruna and Narvik communities
Eng
124 YEARS OF LOGISTICS
1888 The first ore train with 40 wagons arrived to Luleå
1890 LKAB company was established
1903 ”Malmbanan” railway from Kiruna to Narvik was inaugurated
1996 LKAB established subsidiary ore traffic company
1996 New harbour in Luleå
2000 Increased axel load to 30 tonnes
2004 New IORE locomotives and wagons
2009 New harbour structure in Narvik
2012 New railway opened in Kiruna
Eng
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
2013-04-16
Logistics is key for succesful growth
IRON ORE
OPERATIONS
Kiruna Mine and
processing
Malmberget Mine and
Processing
Narvik Harbor (SILA)
Luleå Harbor and
head office
Svappavaara Mine and
Processing
Ore Railway
2013-04-16
Logistics is key for succesful growth
Eng
LKAB37 – HEADED FOR 35% GROWTH
2013-04-16
Logistics is key for succesful growth
Ongoing and approved investments in Malmfälten:
30 billion SEK and about 5 billion SEK in the near future!
LKAB operates right now one of the
largest industrial projects i Sweden
2013-04-16
Logistics is key for succesful growth
Eng
E10 against Kiruna
Mertainen Start planned 2015
Malmbanan
railroad
Gruvberget In operation May 2010 -Jun
2012. Restart december
2012
Leveäniemi Start planned 2015
SVAPPAVAARA FIELD - THE BIGGEST IRON ORE PROJECT I EUROPE
2013-04-16
Logistics is key for succesful growth
WORLD CLASS LOGISTICS
Narvik
Kiruna
Luleå
Malmberget
Svappavaara
169 km
100 km
204 km
40 km
2013-04-16
Logistics is key for succesful growth
Eng
A CHALLENGE NORTH OF THE
ARCTIC CIRCLE
2013-04-16
Logistics is key for succesful growth
2013-04-16
Logistics is key for succesful growth
• Northwest: 10 trains
• Southeast: 5 trains
• >31 Mton per year
2012
• Northwest: 12 trains
• Southeast: 6 trains
• >37 Mt per year 2015
• Northwest: 14 trains
• Southeast: 8 trains
• >44 Mt per year
2020
LKAB RAILWAY CAPACITY
LKAB HAS INVESTED > 5 BILLION SEK
IN A NEW LOGISTIC SYSTEM
Increased efficiency:
• Increased cargo weight – 30 tonnes axle load
• Uniform locomotive- and ore wagon structure
• Only long trains (68 cars)
• Efficient terminals and ports
2013-04-16
Logistics is key for succesful growth
Eng
IORE LOCO:S
Number of locos(Mars 2014): 17 (today 13)
Loco 14: may 6 2013
Loco 15: sept 2 2013
Lok 16 december 2 2013
Lok 17 mars 3 2014
2013-04-16
Logistics is key for succesful growth
Eng
15
2012-09-17
LKAB Malmtrafik AB
FANOO in traffic 2012-03-01: 1090
Final delivery september 2013: 1134
Eng
LULEÅ HARBOUR
Depth: 12 m
Number of Silos: 3
Storage/Silo: 35 000 tonnes
Number of Vessels/Year: About 440
Shipped Products/Year: 6 Mt
Destinations: About 90 % to Sweden and Northern Europe
Eng
NARVIK HARBOUR
Depth: 27 m
Number of Silos: 12
Storage/Silo: 105 000 tonnes pellets, 130 000 tonnes fines
Number of Vessels/Year: About 200
Shipped Products/Year: 19 Mt
Destinations: Europe, Middle East, US and Asia
WORLD CLASS LOGISTICSYSTEM
2013-04-16
Logistics is key for succesful growth
NEW HARBOUR AND SILOS 2013-04-16
Logistics is key for succesful growth
Eng
Foto: Hilde Lillejord
GROWTH CHALLENGES
• Capacity on Malmbanan-Ofotenbanen
• Uncertainity about timing for permission handling
• Skills supply
• Attractive communities
• Housings
THANK YOU FOR LISTENING!