Malmtrafik
Encyclopedia
Malmtrafik i Kiruna AB or MTAB is a Swedish
railway company
which operates the iron ore freight trains on the Ore Line
and the Ofoten Line. MTAB is a wholly owned subsidiary of the mining company Luossavaara–Kiirunavaara (LKAB). In Norway
, operations are handled by the subsidiary Malmtrafikk AS (MTAS). Malmtrafik hauls ore from LKAB's mines in Kiruna
, Malmberget
and Svappavaara
to the ports of Luleå
and Narvik
, the latter located in Norway. The company owns 28 Iore
locomotives and 750 hopper car
s. Each train is 68 cars long and weights 8600 tonnes (8,464.2 LT), allowing the company to transport 33 million tonnes per year.
Traditionally the ore hauling had been done by the Swedish State Railways
(SJ) and Norwegian State Railways (NSB). In the late 1980s, LKAB started a process to take over operations and increase efficiency by using heavier and longer trains. Because of the profitability in the operations, especially NSB was reluctant to lose the operations. In 1993, LKAB received permission to operate their own trains in Sweden, and from 1996 in Norway. MTAB and MTAS were created in 1996 when they took over the hauling formerly operated by NSB and SJ. It inherited Dm3
and El 15
locomotives. Originally established as a joint venture
between LKAB, NSB and SJ, with the mining company as a majority owner, LKAB bough the whole company in 1999. By 2011, the renewal process will be finished, and only trains pulled by Iore will be in operation.
(SEK), half the investment cost. Construction of the Ore Line and Ofoten Line from Gällevare to Narvik started in 1898 and was completed in 1902. In 1915, the section from Kiruna to Riksgränsen
(on the Norway–Sweden border) is electrified
, and by 1923 the whole section from Narvik to Luleå is electrified. In 1940, the Port of Narvik was bombed, and all export for the remainder of World War II
went via Luleå. In 1957, the Government of Sweden bought LKAB.
Hauling of the ore trains along the Ore Line and Ofoten Line has traditionally been operated by the two state railways, SJ and NSB, who have sold their services directly to LKAB. With dwindling profits in LKAB during the early 1980s, in 1983 LKAB used an arbitration
to reduce its transport costs to SJ from 310 to 235 million per year, with subsequent discounts achieved with NSB. In 1988, LKAB demanded further efficiency improvement, and stated that both SJ and NSB were making large profits on the operations. A committee was established by both countries' transport ministries to find areas of improvement. During the 1970s and 1980s, the number of employees working on the ore logistics had been halved, and NSB stated that they did not believe there was much more room for higher efficiency. NSB had a 50% profit margin
on the operations. NSB was bragging in a magazine about their high profitability on this traffic, which upset LKAB.
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In December 1991, LKAB stated that they wanted to take over the operation of the ore trains from NSB and SJ. At the time, they were paying 0.15 Swedish krone (SEK) per tonne kilometer in Sweden and 0.30 Norwegian krone
(NOK) per tonne kilometer in Norway, while comparable rates abroad were between SEK 0.03 and 0.10 per tonne kilometer. While SJ had several times during the 1980s agreed to reduce their rates, NSB had not offered the same, and was making a profit of NOK 60 to 70 million per year. LKAB stated that they, by taking over operations themselves, could save SEK&nsbp;200 million per year. In addition, they stated that they could save between SEK 50 to 100 million in auxiliary fields. LKAB had sent an application to Swedish authorities for permission to take over operations, and had received positive feedback from SJ. NSB, on the other hand, did not support a solution where they did not operate the trains themselves. LKAB stated that if an agreement with NSB could not be reached, they would shift all their transport to the Port of Luleå.
In February 1992, a report ordered by Kiruna Municipality
recommended that LKAB, SJ and NSB create a common company to operate the ore trains. At the same time, SJ stated that the consequence of LKAB taking over operation could be that passenger trains on the lines would be terminated. In April 1992, LKAB was awarded traffic rights by the Swedish Rail Administration. There was a disagreement as to whether the agency had the authority to do this, and SJ stated that it was only the Ministry of Enterprise, Energy and Communications
who had the authority to award traffic rights on the stem lines, in particular from Boden
to Luleå
. The rights also did not effect the Ofoten Line.
The following day, SJ and NSB stated that they were considering establishing a joint venture that would take over the operations of the ore trains. In May, LKAB stated that Norway would, through its membership in the European Economic Area
, be required to allow any train operator to run trains on a line, while this was rejected by NSB who stated that this only applied within the European Union
, of which Norway was not a member. In late May, NSB stated that they were able to cut costs by 25% and that they would reduce the price to LKAB more than this. LKAB rejected the proposal, and stated that NSB had shown their ability of restructuring too late. By August, SJ and NSB had offered to reduce the price from SEK 650 million to 450 million, but LKAB stated that they believed it was possible to reduce the costs further.
In September, Norwegian Minister of Transport and Communications
Kjell Opseth
from the Labour Party
, stated that it would be "unfortunate" if LKAB should take over the operations. The Swedish Government stated that is was their intention to privatize LKAB. On 18 September, 3,000 in Narvik held a general strike
against LKAB's plans. At the time it was not possible for NSB to fire redundant employees, at that the state agency would have to continue to pay their Narvik employees who would not be hired by LKAB, should the latter take over operations.
In October the Swedish Ministry of Communications gave the final permission for LKAB to take over operations in their own right. On 26 October, SJ and NSB signed a new five-year contract with LKAB where the latter would purchase transport services from the two state railway. The annual price had then been reduced from SEK 650 to 400 million. Political commentators stated that the agreement allowed LKAB to keep all the profit in the line and introduce new cost savings, while SJ and NSB kept face by keeping the operating contract. The price reduction would mean that both NSB and SJ would have to lay off employees.
In 1993, the state railways were losing money on the ore trains. In January 1994, SJ and NSB stated that they were going to merge the operations of the Ore Line and the Ofoten Line. In May 1994, LKAB applied for traffic rights on the Ofoten Line. This was rejected in December by the Norwegian Ministry of Transport and Communications, who stated that the company did not meet the criteria in the law, including that the applicant had to have rail transport as their main activity.
In January 1995, it was proposed that a joint venture would be created between LKAB, SJ and NSB. The Norwegian Union of Railway Workers
protested the proposal, and the Norwegian Centre Party
stated that their feared this was the first step into converting NSB to a limited company
. By February the negotiations were in a deadlock, and SJ and NSB stated that they were issuing an invitation to tender for a new class of locomotives. In March, LKAB again applied for permit to operate their own trains in Norway and stated that they would only join a joint venture if they were the majority owner. On 8 June, LKAB established a Swedish and a Norwegian subsidiary dedicated to rail transport. This would bypass the rationale provided by the Ministry of Transport in denying them traffic rights, and LKAB stated that there was no way the Norwegian authorities now could deny them such rights, given EU Directive 91/440
.
On 27 June, LKAB, SJ and NSB reached an agreement where the three would establish a joint venture owned 51% by LKAB and 24.5% each by NSB and SJ. At the time there were 350 employees in the three companies involved in the transport, and the new company would recruit its employees among these, although it would need significantly fewer employees. The plans called for the new companies taking over operations from 1 January 1996. The organization was protested by local labor unions in Narvik. In December, Kjell Opseth created a committee under the ministry, led by State Secretary
Torstein Rudihagen
of the Labour Party, which would look at the reorganization, thus postponing the date of the start of operations. In late January, the committee concluded that LKAB met the criteria to receive traffic rights. The report also showed that 55 jobs would be lost in Narvik and that the Norwegian Railway Inspectorate
had concerns regarding the safety of LKAB's operations.
In Sweden, the labor unions protested after LKAB demanded that the employees switch union from Swedish Union for Service and Communications Employees
to the Swedish Metalworkers Union. This was rejected by the workers, who would both have to reduce their pay and work five more years before retirement. In May the Opseth stated that the Norwegian Government would give the necessary rights to the joint venture. At the same time, the state would give Narvik Municipality economic support and lots for commercial development. With Malktrafik's take-over, 50 employees, equally distributed between the two countries, became redundant. On 28 May, 22 train drivers, all Swedish, took out sick leave in protest towards being forced to switch labor union and receive lower wages and worse pension rights. This caused a third of the ore trains to be canceled.
On 28 June, the transfer of operations was finalized when the Labour Party, the Conservative Party and the Progress Party
voted in the Parliament of Norway, with 67 against 45 votes, to grant Malmtrafik the necessary rights. The Centre Party, the Christian Democratic Party, the Socialist Left Party
, the Liberal Party and the Red Electoral Alliance
voted against. NSB's workshop and depot were to be transferred to a new company, Norsk Verkstedindustri, which was intended to create new jobs in Narvik.
In 1998, LKAB estimated a gradual 35% increase in production until 2005, and demanded that the track owners grant sufficient funding to upgrade the lines from 25 tonnes (24.6 LT) to 30 tonnes (29.5 LT) maximum permitted axle load. Combined with new locomotives, this would give increased efficiency in hauling the ore. The upgrade for the Ofoten Line would cost 180 million Norwegian krone
, and would allow LKAB to increase the train weight from 4100 to 8600 t (4,035.2 to 8,464.2 ). In addition, heavier trains would have to be longer, so sufficient passing loop
s would have to be upgraded to 790 metres (2,591.9 ft).
In March, LKAB awarded the contract to build 750 new 100-tonne hopper car
s to Transnet
of South Africa, after among others Norsk Verkstedindustri had been considered. In August, an agreement was reached whereby LKAB would pay for NOK 100 million of the NOK 130 million needed to upgrade the Ofoten Line. The contract to deliver 18 Iore locomotives was signed with Bombardier on 15 September 1998. LKAB bough SJ and NSB's share of MTAB in 1999, making MTAB a subsidiary.
The first twin unit locomotive was delivered in 2000, and serial delivery was made from 2002 to 2004. In March 2004, LKAB decided to not purchase the option for additional hopper cars from Transnet, and instead purchase 750 heavier cars from K-Industrier. Since 1969 the ore trains have been using the Soviet SA3 coupler
. However, LKAB decided that these were not sufficiently strong for the new trains and decided that the Iore locomotives and the new hopper cars were to be delivered with Janney coupler
s (also known as AAR coupler). While the first pair of locomotives had a Janney couplers, the rest of the first batch were equipped with SA3 couplers to handle the existing hopper cars, and later retrofitted with Janney couplers. In 2003, the Ore Line from Kiruna to Riskgränsen and the Ofoten Line were finished upgraded to 30 tonne axle load, allowing half the trains to operate with maximum capacity.
On 23 August 2007, LKAB ordered another four twin units, with delivery in 2010 and 2011, and costing €52 million. This will replace all remaining Dm3. After delivery, six locomotives are used from Kiruna to Luleå, and twenty are used from Kiruna to Narvik. By 2009, sufficient passing loops had been built along the whole line from Narvik to Luleå to allow all trains to operate with full capacity. By 2011, LKAB's will be able to replace all the Dm3, and convert all the coal trains to 68 cars. This will increase the capacity from 28 to 33 million tonnes per year, and at the same time reduce the number of departures per day from 21 to 15.
locomotive built by Bombardier Transportation
between 2000 and 2011. Operating in pairs, each locomotive has a power output of 5400 kW, a tractive effort of 600 kilonewtons (600,000 N) and a maximum dynamic braking effort is 375 kilonewtons (375,000 N). The locomotives have a Co'Co' wheel arrangement, are 22.905 metre long, 4.465 metre tall and 2.95 metre wide.Each locomotive weighs 180 tonnes (177.2 LT), of which 38 tonnes (37.4 LT) is electrical equipment. Each locomotive has 30 tonnes (29.5 LT) of dead weight to increase the locomotive's weight to the maximum axle weight, and further weight increase has been achieved by making the walls 4 centimetres (1.6 in) wide with armored steel. Diagnostic information is available to the driver and can be sent to the control center via GSM-R
.
.
and Motala Verkstad. Each section is 13.2 metres (43.3 ft) long and weighs 95 tonnes (93.5 LT). The trains will be phased out with the delivery of the last Iore locomotives.
Six El 15 were delivered to NSB in 1967 and remained in use by Malmtrafik until 2004. They have a power output of 5406 kW and a Co'Co' wheel arrangement, and hauled ore trains in pairs. They were built by Thune
, with the electrical components made by Per Kure
. Each locomotive weighs 132 tonnes (129.9 LT) and is 19.2 metres (63 ft) long. The train is a more powerful adaption of the Swedish Rc locomotive. While the trains are as powerful as Iore, they have a lower tractive effort
.
, Sweden. Most of the output is transported by rail to the ice-free Port of Narvik, a route named the Northern Circuit. The Port of Narvik has a capacity for 25 million tonnes per year of ore and allows ships of up to 250,000 deadweight tonnes (DWT). A minority of the ore is transported to the Port of Luleå, on a route named the Southern Circuit. Located on the Baltic Sea, ore via Luleå is shipped to Baltic customers, or delivered to furnaces operated by SSAB
in Luleå and Oxelösund
. The Port of Luleå has a capacity of 10 million tonnes per year, and allows ships up to 60,000 DWT. The Bay of Bothnia is covered in ice from January through May, and access to the port is secured through ice breakers.
The Ore and Ofoten Lines are 536 kilometres (333.1 mi) long, including the branch to Svappavaara, with the route from Kiruna to Narvik being 170 kilometres (105.6 mi), and from Malmberget to Luleå being 220 kilometres (136.7 mi). Operations are Malmtrafik i Kiruna (MTAB) in Sweden and by Malmtrafikk (MTAS) in Norway. Daily there operate 11 to 13 trains in each direction on the Norther Circuit, and five to six trains on the Southern Circuit. The trains hauled by Iore are have 68 cars, are 750 metres (2,460.6 ft) long and weigh 8600 tonnes (8,464.2 LT). The full ore trains operate at 60 kilometres per hour (37.3 mph), while the empty return trains operate at 70 kilometres per hour (43.5 mph).
Although the trains and hopper cars are all owned by LKAB, the Ore Line is owned by the Swedish Transport Administration and the Ofoten Line by the Norwegian National Rail Administration. The lines are single track
, electrified at and have automatic train protection
. The Ore and Ofoten Lines are both also used by passenger and container trains. Malmtrafik's haulage constitutes the majority of train cargo in Norway, measured in tonnes, although not in tonne kilometers.
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
railway company
Railway company
A railway company or railroad company is an entity that operates a railroad track and/or trains. Such a company can either be private or public...
which operates the iron ore freight trains on the Ore Line
Malmbanan
The Iron Ore Line is a long railway line between Riksgränsen and Boden in Norrbotten County, Sweden. The line contains two branches, from Kiruna to Svappavaara and from Gällivare to Koskullskulle. The term is often colloquially used to also include the Ofoten Line, from Riksgränsen to Narvik in...
and the Ofoten Line. MTAB is a wholly owned subsidiary of the mining company Luossavaara–Kiirunavaara (LKAB). In Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, operations are handled by the subsidiary Malmtrafikk AS (MTAS). Malmtrafik hauls ore from LKAB's mines in Kiruna
Kiruna
Kiruna is the northernmost city in Sweden, situated in Lapland province, with 18,154 inhabitants in 2005. It is the seat of Kiruna Municipality Kiruna (Northern Sami: Giron, Finnish: Kiiruna) is the northernmost city in Sweden, situated in Lapland province, with 18,154 inhabitants in 2005. It is...
, Malmberget
Malmberget
Malmberget is a locality and mining town situated in Gällivare Municipality, Norrbotten County, Sweden with 6,017 inhabitants in 2005. It is situated 5 kilometres from the municipal seat Gällivare....
and Svappavaara
Svappavaara
Svappavaara is a locality situated in Kiruna Municipality, Norrbotten County, Sweden with 394 inhabitants in 2005. It is a mining village and the mine was closed in 1983, but enrichment of iron ore from the mine at Kiruna is still going on...
to the ports of Luleå
Luleå
- Transportation :Local buses are run by .A passenger train service is available from Luleå Centralstation on Sweden's national SJ railway service northbound to Narvik on the Norwegian coast, or southbound to Stockholm. See Rail transport in Sweden....
and Narvik
Narvik
is the third largest city and municipality in Nordland county, Norway by population. Narvik is located on the shores of the Narvik Fjord . The municipality is part of the Ofoten traditional region of North Norway, inside the arctic circle...
, the latter located in Norway. The company owns 28 Iore
IORE
Iore, often stylized IORE, is a class of 26 electric locomotives built by Adtranz and its successor Bombardier Transportation for the Swedish mining company LKAB's railway division Malmtrafik. The class is a variation of Adtranz's Octeon modular product platform, thus related to Bombardier's later...
locomotives and 750 hopper car
Hopper car
A hopper car is a type of railroad freight car used to transport loose bulk commodities such as coal, ore, grain, track ballast, and the like. The name originated from the coke manufacturing industry which is part of the steel industry ....
s. Each train is 68 cars long and weights 8600 tonnes (8,464.2 LT), allowing the company to transport 33 million tonnes per year.
Traditionally the ore hauling had been done by the Swedish State Railways
Statens Järnvägar
The Swedish State Railways or SJ, originally the Royal Railway Board , is a former government agency responsible for operating the state railways in Sweden....
(SJ) and Norwegian State Railways (NSB). In the late 1980s, LKAB started a process to take over operations and increase efficiency by using heavier and longer trains. Because of the profitability in the operations, especially NSB was reluctant to lose the operations. In 1993, LKAB received permission to operate their own trains in Sweden, and from 1996 in Norway. MTAB and MTAS were created in 1996 when they took over the hauling formerly operated by NSB and SJ. It inherited Dm3
SJ Dm3
Dm and Dm3 is a series of locomotives used by Statens Järnvägar and later Malmtafik i Kiruna for pulling iron ore trains on Malmbanan in Sweden and Ofotbanen in Norway. A total of 39 double-locomotives were delivered between 1953 and 1971, built by ASEA. A further 19 center locomotives were...
and El 15
NSB El 15
NSB El 15 is a class of electric locomotives which are now operated by the Swedish company Hector Rail as Class 161 locomotives. The locomotives were originally built for the Norwegian State Railways in 1967 to replace the NSB El 3 and NSB El 4 engines on Ofotbanen...
locomotives. Originally established as a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
between LKAB, NSB and SJ, with the mining company as a majority owner, LKAB bough the whole company in 1999. By 2011, the renewal process will be finished, and only trains pulled by Iore will be in operation.
Background
In 1884, LKAB's predecessor Gellivare Aktiebolag is granted concession for mining in Malmberget. Four years later, the first part of the Ore Line, from Malmberget to Luleå, was completed. In 1889, the mining company filed for bankruptcy, and the Government of Sweden bought the line for 8 million Swedish kronaSwedish krona
The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...
(SEK), half the investment cost. Construction of the Ore Line and Ofoten Line from Gällevare to Narvik started in 1898 and was completed in 1902. In 1915, the section from Kiruna to Riksgränsen
Riksgränsen
Riksgränsen, The National Border in Swedish, is a ski-resort in Kiruna Municipality, Lappland, Sweden, 200 km north of the Arctic Circle. The skiing season is from February to June...
(on the Norway–Sweden border) is electrified
Railway electrification system
A railway electrification system supplies electrical energy to railway locomotives and multiple units as well as trams so that they can operate without having an on-board prime mover. There are several different electrification systems in use throughout the world...
, and by 1923 the whole section from Narvik to Luleå is electrified. In 1940, the Port of Narvik was bombed, and all export for the remainder of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
went via Luleå. In 1957, the Government of Sweden bought LKAB.
Hauling of the ore trains along the Ore Line and Ofoten Line has traditionally been operated by the two state railways, SJ and NSB, who have sold their services directly to LKAB. With dwindling profits in LKAB during the early 1980s, in 1983 LKAB used an arbitration
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
to reduce its transport costs to SJ from 310 to 235 million per year, with subsequent discounts achieved with NSB. In 1988, LKAB demanded further efficiency improvement, and stated that both SJ and NSB were making large profits on the operations. A committee was established by both countries' transport ministries to find areas of improvement. During the 1970s and 1980s, the number of employees working on the ore logistics had been halved, and NSB stated that they did not believe there was much more room for higher efficiency. NSB had a 50% profit margin
Profit margin
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.Net profit Margin = x100...
on the operations. NSB was bragging in a magazine about their high profitability on this traffic, which upset LKAB.
Establishment
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
(NOK) per tonne kilometer in Norway, while comparable rates abroad were between SEK 0.03 and 0.10 per tonne kilometer. While SJ had several times during the 1980s agreed to reduce their rates, NSB had not offered the same, and was making a profit of NOK 60 to 70 million per year. LKAB stated that they, by taking over operations themselves, could save SEK&nsbp;200 million per year. In addition, they stated that they could save between SEK 50 to 100 million in auxiliary fields. LKAB had sent an application to Swedish authorities for permission to take over operations, and had received positive feedback from SJ. NSB, on the other hand, did not support a solution where they did not operate the trains themselves. LKAB stated that if an agreement with NSB could not be reached, they would shift all their transport to the Port of Luleå.
In February 1992, a report ordered by Kiruna Municipality
Kiruna Municipality
Kiruna Municipality is a municipality in Norrbotten County in northernmost Sweden. Its seat is located in Kiruna...
recommended that LKAB, SJ and NSB create a common company to operate the ore trains. At the same time, SJ stated that the consequence of LKAB taking over operation could be that passenger trains on the lines would be terminated. In April 1992, LKAB was awarded traffic rights by the Swedish Rail Administration. There was a disagreement as to whether the agency had the authority to do this, and SJ stated that it was only the Ministry of Enterprise, Energy and Communications
Ministry of Enterprise, Energy and Communications (Sweden)
The Ministry of Enterprise, Energy and Communications is a ministry within the government of Sweden. Its areas of responsibility include business development and competition, electronic communications, energy, forestry, information technology , postal communications and cashier service, primary...
who had the authority to award traffic rights on the stem lines, in particular from Boden
Boden, Sweden
Boden is a locality and the seat of Boden Municipality in Norrbotten County, Sweden with 18,680 inhabitants in 2005.- History :The town of Boden started as a railway junction where the Northern Line met with the Ore Line from the rich iron ore fields in northern Sweden.The town experienced...
to Luleå
Luleå
- Transportation :Local buses are run by .A passenger train service is available from Luleå Centralstation on Sweden's national SJ railway service northbound to Narvik on the Norwegian coast, or southbound to Stockholm. See Rail transport in Sweden....
. The rights also did not effect the Ofoten Line.
The following day, SJ and NSB stated that they were considering establishing a joint venture that would take over the operations of the ore trains. In May, LKAB stated that Norway would, through its membership in the European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...
, be required to allow any train operator to run trains on a line, while this was rejected by NSB who stated that this only applied within the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, of which Norway was not a member. In late May, NSB stated that they were able to cut costs by 25% and that they would reduce the price to LKAB more than this. LKAB rejected the proposal, and stated that NSB had shown their ability of restructuring too late. By August, SJ and NSB had offered to reduce the price from SEK 650 million to 450 million, but LKAB stated that they believed it was possible to reduce the costs further.
In September, Norwegian Minister of Transport and Communications
Minister of Transport and Communications (Norway)
The Minister of Transport and Communications is a Councillor of State and Chief of the Norwegian Ministry of Transport and Communications. Since 20 October 2009, the position has been held by Magnhild Meltveit Kleppa of the Centre Party...
Kjell Opseth
Kjell Opseth
Kjell Olav Opseth is a Norwegian politician for the Labour Party. He was Minister of Transport and Communications 1990-1996 and Minister of Local Government Affairs 1996-1997.-References:...
from the Labour Party
Norwegian Labour Party
The Labour Party is a social-democratic political party in Norway. It is the senior partner in the current Norwegian government as part of the Red-Green Coalition, and its leader, Jens Stoltenberg, is the current Prime Minister of Norway....
, stated that it would be "unfortunate" if LKAB should take over the operations. The Swedish Government stated that is was their intention to privatize LKAB. On 18 September, 3,000 in Narvik held a general strike
General strike
A general strike is a strike action by a critical mass of the labour force in a city, region, or country. While a general strike can be for political goals, economic goals, or both, it tends to gain its momentum from the ideological or class sympathies of the participants...
against LKAB's plans. At the time it was not possible for NSB to fire redundant employees, at that the state agency would have to continue to pay their Narvik employees who would not be hired by LKAB, should the latter take over operations.
In October the Swedish Ministry of Communications gave the final permission for LKAB to take over operations in their own right. On 26 October, SJ and NSB signed a new five-year contract with LKAB where the latter would purchase transport services from the two state railway. The annual price had then been reduced from SEK 650 to 400 million. Political commentators stated that the agreement allowed LKAB to keep all the profit in the line and introduce new cost savings, while SJ and NSB kept face by keeping the operating contract. The price reduction would mean that both NSB and SJ would have to lay off employees.
In 1993, the state railways were losing money on the ore trains. In January 1994, SJ and NSB stated that they were going to merge the operations of the Ore Line and the Ofoten Line. In May 1994, LKAB applied for traffic rights on the Ofoten Line. This was rejected in December by the Norwegian Ministry of Transport and Communications, who stated that the company did not meet the criteria in the law, including that the applicant had to have rail transport as their main activity.
In January 1995, it was proposed that a joint venture would be created between LKAB, SJ and NSB. The Norwegian Union of Railway Workers
Norwegian Union of Railway Workers
The Norwegian Union of Railway Workers is a trade union in Norway. It was formed on 20 November 1892, and mainly organizes workers in Norges Statsbaner—with the exception of locomotive drivers— and the Norwegian National Rail Administration, including related companies such as...
protested the proposal, and the Norwegian Centre Party
Centre Party (Norway)
The Centre Party is a centrist and agrarian political party in Norway, founded in 1920. The Centre Party's policy is not based on any of the major ideologies of the 19th and 20th century, but has a focus on maintaining decentralised economic development and political decision-making.From its...
stated that their feared this was the first step into converting NSB to a limited company
Aksjeselskap
Aksjeselskap is the Norwegian term for a stock-based company. It is usually abbreviated AS or A/S, especially when used in company names. An AS is always a limited company, i.e. the owners cannot be held liable for any debt beyond the stock capital...
. By February the negotiations were in a deadlock, and SJ and NSB stated that they were issuing an invitation to tender for a new class of locomotives. In March, LKAB again applied for permit to operate their own trains in Norway and stated that they would only join a joint venture if they were the majority owner. On 8 June, LKAB established a Swedish and a Norwegian subsidiary dedicated to rail transport. This would bypass the rationale provided by the Ministry of Transport in denying them traffic rights, and LKAB stated that there was no way the Norwegian authorities now could deny them such rights, given EU Directive 91/440
EU Directive 91/440
The EU Directive 91/440 is European Union legislation that sets out a framework and requirements for railways in the EU to allow open access operations on railway lines by companies other than those that own the rail infrastructure...
.
On 27 June, LKAB, SJ and NSB reached an agreement where the three would establish a joint venture owned 51% by LKAB and 24.5% each by NSB and SJ. At the time there were 350 employees in the three companies involved in the transport, and the new company would recruit its employees among these, although it would need significantly fewer employees. The plans called for the new companies taking over operations from 1 January 1996. The organization was protested by local labor unions in Narvik. In December, Kjell Opseth created a committee under the ministry, led by State Secretary
State Secretary (Norway)
In Norway, a State Secretary is a partisan political position within the executive branch of government. Contrary to the position Secretary of State in many other countries, the Norwegian State Secretary does not head his or her Ministry, rather, they are second in rank to a Minister...
Torstein Rudihagen
Torstein Rudihagen
Torstein Rudihagen is a Norwegian politician for the Labour Party.In his early career, he worked as a teacher. He began his political career in the municipality council of Sør-Fron, to which he was elected in 1983. He later became mayor, a seat he filled from 1991 to 1997...
of the Labour Party, which would look at the reorganization, thus postponing the date of the start of operations. In late January, the committee concluded that LKAB met the criteria to receive traffic rights. The report also showed that 55 jobs would be lost in Narvik and that the Norwegian Railway Inspectorate
Norwegian Railway Inspectorate
The Norwegian Railway Inspectorate is a Norwegian government agency responsible for control and supervision of rail transport in Norway, including railways, tramways, rapid transits, heritage railways and side tracks....
had concerns regarding the safety of LKAB's operations.
In Sweden, the labor unions protested after LKAB demanded that the employees switch union from Swedish Union for Service and Communications Employees
Swedish Union for Service and Communications Employees
-External links:* official site.* official site....
to the Swedish Metalworkers Union. This was rejected by the workers, who would both have to reduce their pay and work five more years before retirement. In May the Opseth stated that the Norwegian Government would give the necessary rights to the joint venture. At the same time, the state would give Narvik Municipality economic support and lots for commercial development. With Malktrafik's take-over, 50 employees, equally distributed between the two countries, became redundant. On 28 May, 22 train drivers, all Swedish, took out sick leave in protest towards being forced to switch labor union and receive lower wages and worse pension rights. This caused a third of the ore trains to be canceled.
On 28 June, the transfer of operations was finalized when the Labour Party, the Conservative Party and the Progress Party
Progress Party (Norway)
The Progress Party is a political party in Norway which identifies as conservative liberal and libertarian. The media has described it as conservative and right-wing populist...
voted in the Parliament of Norway, with 67 against 45 votes, to grant Malmtrafik the necessary rights. The Centre Party, the Christian Democratic Party, the Socialist Left Party
Socialist Left Party (Norway)
The Socialist Left Party or SV, is a Norwegian left-wing political party. At one point one of the smallest parties in Parliament, it became the fourth-largest political party in Norway for the first time in the 2001 parliamentary election, and has been so ever since...
, the Liberal Party and the Red Electoral Alliance
Red Electoral Alliance
Red Electoral Alliance was an alliance of left-wing groups formed into a Norwegian political party to promote revolutionary far-left ideals into the Norwegian parliament...
voted against. NSB's workshop and depot were to be transferred to a new company, Norsk Verkstedindustri, which was intended to create new jobs in Narvik.
Heavier trains
Malmtrafik took over operations from 1 July. The company bought the Dm3-locomotives from SJ, NSB's six El 15 locomotives, and a number of workshops, depots and shunters. Post-nationalization, it became the first private railway company in Europe to haul international freight trains. rom 26 September to 27 October, 200 employees in Narvik were on strike regarding the transition rules for employees. While the strike lasted, there was increased shipments to Luleå. In November, the new ore port in Luleå opened, having cost LKAB more than half a billion Swedish krone and a capacity of six million tonnes of ore per year.In 1998, LKAB estimated a gradual 35% increase in production until 2005, and demanded that the track owners grant sufficient funding to upgrade the lines from 25 tonnes (24.6 LT) to 30 tonnes (29.5 LT) maximum permitted axle load. Combined with new locomotives, this would give increased efficiency in hauling the ore. The upgrade for the Ofoten Line would cost 180 million Norwegian krone
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
, and would allow LKAB to increase the train weight from 4100 to 8600 t (4,035.2 to 8,464.2 ). In addition, heavier trains would have to be longer, so sufficient passing loop
Passing loop
A passing loop is a place on a single line railway or tramway, often located at a station, where trains or trams in opposing directions can pass each other. Trains/trams in the same direction can also overtake, providing that the signalling arrangement allows it...
s would have to be upgraded to 790 metres (2,591.9 ft).
In March, LKAB awarded the contract to build 750 new 100-tonne hopper car
Hopper car
A hopper car is a type of railroad freight car used to transport loose bulk commodities such as coal, ore, grain, track ballast, and the like. The name originated from the coke manufacturing industry which is part of the steel industry ....
s to Transnet
Transnet
Transnet SOC Ltd is a large South African rail, port and pipeline company, headquartered in the Carlton Centre in Johannesburg. It was formed as a limited company on April 1, 1990. A majority of the company's stock is owned by the Department of Public Enterprises, or DPE, of the South African...
of South Africa, after among others Norsk Verkstedindustri had been considered. In August, an agreement was reached whereby LKAB would pay for NOK 100 million of the NOK 130 million needed to upgrade the Ofoten Line. The contract to deliver 18 Iore locomotives was signed with Bombardier on 15 September 1998. LKAB bough SJ and NSB's share of MTAB in 1999, making MTAB a subsidiary.
The first twin unit locomotive was delivered in 2000, and serial delivery was made from 2002 to 2004. In March 2004, LKAB decided to not purchase the option for additional hopper cars from Transnet, and instead purchase 750 heavier cars from K-Industrier. Since 1969 the ore trains have been using the Soviet SA3 coupler
SA3 coupler
The SA3 coupler is a type of railway coupling used mainly, but not exclusively, in Russia and other states of the former Soviet Union.Railways in Russia used European buffers and couplings from their inception. These couplings had three main limitations. Firstly the load was limited. Secondly, the...
. However, LKAB decided that these were not sufficiently strong for the new trains and decided that the Iore locomotives and the new hopper cars were to be delivered with Janney coupler
Janney coupler
The Janney coupler, also known as a knuckle coupler, buckeye coupler, alliance coupler and AAR coupler is an automatic coupler patented by Eli H...
s (also known as AAR coupler). While the first pair of locomotives had a Janney couplers, the rest of the first batch were equipped with SA3 couplers to handle the existing hopper cars, and later retrofitted with Janney couplers. In 2003, the Ore Line from Kiruna to Riskgränsen and the Ofoten Line were finished upgraded to 30 tonne axle load, allowing half the trains to operate with maximum capacity.
On 23 August 2007, LKAB ordered another four twin units, with delivery in 2010 and 2011, and costing €52 million. This will replace all remaining Dm3. After delivery, six locomotives are used from Kiruna to Luleå, and twenty are used from Kiruna to Narvik. By 2009, sufficient passing loops had been built along the whole line from Narvik to Luleå to allow all trains to operate with full capacity. By 2011, LKAB's will be able to replace all the Dm3, and convert all the coal trains to 68 cars. This will increase the capacity from 28 to 33 million tonnes per year, and at the same time reduce the number of departures per day from 21 to 15.
Rolling stock
Iore
Iore is a class of 26 modified TRAXXTRAXX
Bombardier TRAXX is a modular product platform of electric and Diesel-electric mainline locomotives built by Bombardier Transportation, built in both freight and passenger variants...
locomotive built by Bombardier Transportation
Bombardier Transportation
Bombardier Transportation is the rail equipment division of the Canadian firm, Bombardier Inc. Bombardier Transportation is one of the world's largest companies in the rail-equipment manufacturing and servicing industry. Its headquarters are in Berlin, Germany....
between 2000 and 2011. Operating in pairs, each locomotive has a power output of 5400 kW, a tractive effort of 600 kilonewtons (600,000 N) and a maximum dynamic braking effort is 375 kilonewtons (375,000 N). The locomotives have a Co'Co' wheel arrangement, are 22.905 metre long, 4.465 metre tall and 2.95 metre wide.Each locomotive weighs 180 tonnes (177.2 LT), of which 38 tonnes (37.4 LT) is electrical equipment. Each locomotive has 30 tonnes (29.5 LT) of dead weight to increase the locomotive's weight to the maximum axle weight, and further weight increase has been achieved by making the walls 4 centimetres (1.6 in) wide with armored steel. Diagnostic information is available to the driver and can be sent to the control center via GSM-R
GSM-R
GSM-R, Global System for Mobile Communications - Railway or GSM-Railway is an international wireless communications standard for railway communication and applications. A sub-system of European Rail Traffic Management System , it is used for communication between train and railway regulation...
.
Hopper cars
Malmtrafik operates 750 hopper cars from two different manufacturers: Transnet and K-Industrier. Each hopper car has a loading capacity of 80 or, with a maximum permitted axle load of 30 tonnes (29.5 LT). Each train has 68 cars, although Malmtrafik has ordered six spare cars for each train. There are seven sets of cars for the Northern Circuit. The cars use a Janney couplerJanney coupler
The Janney coupler, also known as a knuckle coupler, buckeye coupler, alliance coupler and AAR coupler is an automatic coupler patented by Eli H...
.
Former locomotives
The Dm3 are a class of triple-locomotives delivered to SJ between 1952 and 1970. Each triple unit had a power output of 7200 kW and a 1'D+1D'+D'1 wheel arrangement. The locomotives were built by ASEAASEA
Allmänna Svenska Elektriska Aktiebolaget was a Swedish industry company. It merged with the Swiss Brown, Boveri & Cie in 1988 to form Asea Brown Boveri...
and Motala Verkstad. Each section is 13.2 metres (43.3 ft) long and weighs 95 tonnes (93.5 LT). The trains will be phased out with the delivery of the last Iore locomotives.
Six El 15 were delivered to NSB in 1967 and remained in use by Malmtrafik until 2004. They have a power output of 5406 kW and a Co'Co' wheel arrangement, and hauled ore trains in pairs. They were built by Thune
Thune
Thunes Mekaniske Værksted A/S, Thune for short, was a Norwegian manufacturing company that among other things built locomotives. The production facilities were last located at Skøyen.-History:...
, with the electrical components made by Per Kure
Per Kure (company)
A/S Per Kure, variously also known as A/S Per Kure Norsk Motor- og Dynamofabrikk and ASEA–Per Kure, was a manufacturer first of electric heaters and later of transformers. Founded by Per Kure in 1897, it was for most of its history based at Hasle in Oslo, Norway...
. Each locomotive weighs 132 tonnes (129.9 LT) and is 19.2 metres (63 ft) long. The train is a more powerful adaption of the Swedish Rc locomotive. While the trains are as powerful as Iore, they have a lower tractive effort
Tractive effort
As used in mechanical engineering, the term tractive force is the pulling or pushing force exerted by a vehicle on another vehicle or object. The term tractive effort is synonymous with tractive force, and is often used in railway engineering to describe the pulling or pushing capability of a...
.
Operation
LKAB operates iron ore mines in Kiruna, Svappavaara and Malmberget in Norrbotten CountyNorrbotten County
Norrbotten County is the northernmost county or län of Sweden. It borders Västerbotten County to the southwest, the Gulf of Bothnia to the southeast. It also borders the counties of Nordland and Troms in Norway to the northwest, and Lapland Province in Finland to the northeast.The name...
, Sweden. Most of the output is transported by rail to the ice-free Port of Narvik, a route named the Northern Circuit. The Port of Narvik has a capacity for 25 million tonnes per year of ore and allows ships of up to 250,000 deadweight tonnes (DWT). A minority of the ore is transported to the Port of Luleå, on a route named the Southern Circuit. Located on the Baltic Sea, ore via Luleå is shipped to Baltic customers, or delivered to furnaces operated by SSAB
SSAB
SSAB Swedish Steel AB , or simply SSAB is a Swedish company, formed in 1978 and specialised in processing raw material to steel. Industrivärden is the largest shareholder.-Swedish operations:...
in Luleå and Oxelösund
Oxelösund
Oxelösund is a locality and the seat of Oxelösund Municipality in Södermanland County, Sweden with 10,843 inhabitants in 2005.- History :The harbour at Oxelösund has been used for at least 500 years. In the 19th century, an increased extraction from the Mining district of Central Sweden , made...
. The Port of Luleå has a capacity of 10 million tonnes per year, and allows ships up to 60,000 DWT. The Bay of Bothnia is covered in ice from January through May, and access to the port is secured through ice breakers.
The Ore and Ofoten Lines are 536 kilometres (333.1 mi) long, including the branch to Svappavaara, with the route from Kiruna to Narvik being 170 kilometres (105.6 mi), and from Malmberget to Luleå being 220 kilometres (136.7 mi). Operations are Malmtrafik i Kiruna (MTAB) in Sweden and by Malmtrafikk (MTAS) in Norway. Daily there operate 11 to 13 trains in each direction on the Norther Circuit, and five to six trains on the Southern Circuit. The trains hauled by Iore are have 68 cars, are 750 metres (2,460.6 ft) long and weigh 8600 tonnes (8,464.2 LT). The full ore trains operate at 60 kilometres per hour (37.3 mph), while the empty return trains operate at 70 kilometres per hour (43.5 mph).
Although the trains and hopper cars are all owned by LKAB, the Ore Line is owned by the Swedish Transport Administration and the Ofoten Line by the Norwegian National Rail Administration. The lines are single track
Single track (rail)
A single track railway is where trains in both directions share the same track. Single track is normally used on lesser used rail lines, often branch lines, where the traffic density is not high enough to justify the cost of building double tracks....
, electrified at and have automatic train protection
Automatic Train Protection
Automatic Train Protection in Great Britain refers to either of two implementations of a train protection system installed in some trains in order to help prevent collisions through a driver's failure to observe a signal or speed restriction...
. The Ore and Ofoten Lines are both also used by passenger and container trains. Malmtrafik's haulage constitutes the majority of train cargo in Norway, measured in tonnes, although not in tonne kilometers.