The matter in summary: A train derailment in Sweden has closed one of Northern Norway’s most important transport arteries for seven weeks, which has cost billions of kroner. The Swedish mining company LKAB, which accounts for 85 percent of the iron ore produced within the EU, has not been able to transport the iron ore from Kiruna in northern Sweden to Narvik. The consequence is that three million tonnes of iron pellets with a value of NOK five billion have piled up on the industrial areas in Kiruna and Svappavaara. The train derailment has also affected freight traffic in Norway, with 25 million tonnes of freight annually on Ofotbanen, more than all other freight traffic by rail in Norway combined. The train stoppage has led to 4,000 extra lorry trains onto poor winter roads, and has cost the seafood industry NOK two billion. LKAB believes that the large amount of traffic on the Ofot line means that they will not be able to remove the ore stockpiles, and believes that there is a need for an improvement of the line. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. The Swedish mining company LKAB accounts for 85 percent of the iron ore produced within the EU. For seven weeks it has not been possible to transport the iron ore from Kiruna in northern Sweden to Narvik, where the ore is transported out into the world by ship. The reason is a dramatic train derailment on 17 December last year. The consequence is that 3 million tonnes of iron pellets with a value of NOK 5 billion have piled up on the industrial areas in Kiruna and Svappavaara. After several postponements, Ofotbanen, or Malmbanen as it is called on the Swedish side, will probably open on 4 February. The railway has then been closed for 49 days. LKAB usually runs ten daily trains fully loaded with iron ore with Ofotbanen. A month and a half train stoppage means that LKAB will not be able to keep up with the piles of ore that have piled up. NOK 5 billion worth of iron ore is piled up in Kiruna. The ore should have been transported on the Ofotbanen, but the railway line has been closed for seven weeks. Photo: SVT Linda Bjurholt, who is logistics manager at LKAB, tells SVT. – It will take a long time, perhaps until 2030 or longer. We lose at least NOK 100 million every day in income we get when we sell the ore, she says. Major consequences The train derailment has also put a damper on the wheels for a part of Norway. Namely, 25 million tonnes of goods are transported annually on the Ofot line. Measured in tonnes, this is more than all other freight traffic by rail in Norway combined. Was opened in 1903 and is Norway’s busiest train line The Ofot line is a railway line between Narvik and the Swedish border. Operationally, it is part of the Malmbanan that runs between Luleå and Narvik. Ofotbanen is 43 km long from Narvik to the national border, and has 20 tunnels. The main part of the traffic on the track is ore trains that bring ore and pellets from the mines in Kiruna. 25 million tonnes of goods are transported annually on the Ofot line, and measured in tonnes this is more than all other freight traffic by rail in Norway combined. The ore traffic began in the autumn of 1902 and the track was officially inaugurated by King Oscar II on 14 July 1903. The ore trains run around the clock, all year round. Apart from these, there are two daily pairs of passenger trains to and from Sweden and also freight trains between Narvik and the Alnabru terminal near Oslo via Sweden; the so-called Arctic Rail Express trains. Schenker also runs its own freight trains. Ofotbanen is owned and maintained by Bane NOR and has a great need for maintenance due to the heavy trains. Source: Wikipedia Large parts of the goods going to Northern Norway are transported from Alnabru via rail in Sweden and up to Narvik. From here, food and goods are transported further by car out into Northern Norway. Around 200,000 tonnes of seafood are transported annually on this railway line. According to Fiskeribladet, the trouble on the Ofot line this winter has cost the seafood industry NOK 2 billion. On 17 December, an ore train on its way to Narvik derailed. 25,000 sleepers have been replaced on a 15 kilometer stretch between Tornehamn and Vassijaure. Photo: Trafikverket 4,000 more truck trains on the roads The consequences are that all fish has been transported on truck trains rather than trains. According to the port director in Narvik, the freight traffic on the way to and from Narvik has led to 4,000 extra wagon trains on bad winter roads. Exploded capacity It is the enormous amount of traffic on the Ofot line that makes the mining company believe they will not be able to remove the ore stocks. Therefore, for several years, work has been done on both the Norwegian and Swedish sides to build a double track on the Ofot line. A fully loaded train with 10 carriages derailed at Vassijaure 13 miles northwest of Kiruna, and the damage was extensive, according to the Swedish Transport Administration. Photo: Trafikverket Togstansen shows how vulnerable this northern transport corridor between Norway and Sweden is, LKAB believes. – The situation shows how clearly the need for an improvement of the track is. The solution is soon expansion to double track, says press manager Andreas Lindberg of LKAB to news. Every day, the mining company transports ten trains fully loaded with iron ore from Kiruna to Narvik and on to the world. This corresponds to two thirds of all ore that is extracted from the mines in Kiruna. Photo: Jonas Ekströmer/TT / NTB But why can’t the Swedes transport their iron ore onto the world market without being dependent on Norway? The press manager states that a third of the ore extracted from the mines is transported to the Swedish coastal town of Luleå, and shipped out from there. But frozen seas in the Gulf of Bothnia mean that Luleå is not as attractive as a shipping port. Narvik harbor is ice-free, has a larger capacity and is more easily accessible for LKAB’s customers. – Without Narvik harbour, LKAB would not be the company we are today. This is how we reach the world market. It is very difficult to imagine anything else, says press manager Anders Lindberg at LKAB. Photo: LKAB – Without Narvik harbour, LKAB would not be the company we are today. But the single track on Malmbanan/Ofotbanen is extremely vulnerable and not enough. We need to see investments across the board. – Will be important for NATO In Norway, there has been little political will to build double tracks on the Ofot line. The situation has not been better on the Swedish side. But perhaps that is about to turn. The closed railway also threatens plans for the extraction of rare earth metals: – We feel that there is a growing understanding of how important this railway is. Partly thanks to the income that LKAB provides to the Swedish state, partly for the transport of goods and people. The impending Nato membership gives another dimension to Malmbanan’s strategic importance, says Lindberg. County council: – Disappointed At Narvik Harbor and the Narvik Terminal it is completely quiet. No ore boats or much activity to be seen. It has been like this since 17 December. – Double tracks on Ofotbanen must be one of the most important priority transport projects in Nordland and for Norway, says county councilor for transport Marianne Dobak Kvensjø (H). Photo: Thor-Wiggo Skille / Nordland county municipality According to the calculation of director Børge Edvardsen Klingan at Narvik Harbour, the train accident has resulted in NOK 5-7 billion in market value for fish and ore. – It is dramatic for Narvik and the users of the lane, says the port director. County councilor for transport Marianne Dobak Kvensjø (H) shares the concerns of the business community. A new national transport plan (NTP) will be presented already this year, and Kvensjø says that the county council is working with the government and the Storting to get the funds prioritized into the plan. – We must recognize that the Nordland community has not been listened to in this case. We will not give up until double tracks on Ofotbanen are in place. We expect that there will be a grant in the upcoming NTP, and that this will speed up the project. Sweden’s NATO application actualizes and clarifies this need. – Therefore, we will take a more active role towards the Swedish authorities, to ensure progress in the realization of double tracks on the Norwegian and Swedish sides. A freight train in Narvik before it heads for Malmö. On board are 400 tonnes of fish from northern Norway. Photo: Vy
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Here, iron ore worth NOK 5 billion lies in a grove – news Nordland
