Scandinavian Rail Development 2013 - Anders Björnström

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

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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

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Eng

LKAB37 – HEADED FOR 35% GROWTH

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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

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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

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WORLD CLASS LOGISTICS

Narvik

Kiruna

Luleå

Malmberget

Svappavaara

169 km

100 km

204 km

40 km

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Eng

A CHALLENGE NORTH OF THE

ARCTIC CIRCLE

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• Northwest: 10 trains

• Southeast: 5 trains

• >31 Mton per year

2012



• >37 Mt per year 2015



• >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

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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

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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

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NEW HARBOUR AND SILOS 2013-04-16


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!

Scandinavian Rail Development 2013 - Anders Björnström

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