1. Logistics is key for succesful growth
2013-04-16
EFFICIENT LOGISTICS – KEY TO
SUCCESSFUL GROWTH
Anders Björnström
Managing Director LKAB Malmtrafik AB
Scandinavian Rail 2013-04-16

2. 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.

3. THE ORE RAILWAY MALMBANAN-OFOTENBANE
Construction of Malmbanan – Ofotbanen ore railway to the Atlantic sea was the basis for L
establishment and possibility to be a competitive company. The railway was also the basis
the establishment of Kiruna and Narvik communities
Foto: Hilde L

4. 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

5. Logistics is key for succesful growth
2013-04-16
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

6. Logistics is key for succesful growth
2013-04-16
IRON ORE Narvik
Harbor (SILA) Kiruna
Mine and
OPERATIONS processing
Svappavaara
Ore Railway Mine and
Processing
Malmberget
Mine and
Processing
Luleå
Harbor and
head office

7. Logistics is key for succesful growth
2013-04-16
LKAB37 – HEADED FOR 35% GROWTH

8. Logistics is key for succesful growth
2013-04-16
LKAB operates right now one of the
largest industrial projects i Sweden
Ongoing and approved investments in Malmfälten:
30 billion SEK and about 5 billion SEK in the near future!

9. Logistics is key for succesful growth
2013-04-16
Mertainen
Start planned 2015
Gruvberget
In operation May 2010 -Jun E10 against Kiruna
2012. Restart december
2012
Leveäniemi Malmbanan
Start planned 2015
railroad
SVAPPAVAARA FIELD
- THE BIGGEST IRON ORE PROJECT I EUROPE

10. Logistics is key for succesful growth
2013-04-16
Narvik
169 km
Kiruna 40 km
100 km Svappavaara
Malmberget
204 km
WORLD CLASS LOGISTICS Luleå

11. Logistics is key for succesful growth
2013-04-16
A CHALLENGE NORTH OF THE
ARCTIC CIRCLE

12. Logistics is key for succesful growth
2013-04-16
LKAB RAILWAY CAPACITY
• Northwest: 10 trains
• Southeast: 5 trains
2012 • >31 Mton per year
• Northwest: 12 trains
• Southeast: 6 trains
2015 • >37 Mt per year
• Northwest: 14 trains
• Southeast: 8 trains
2020 • >44 Mt per year

13. Logistics is key for succesful growth
2013-04-16
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

14. Logistics is key for succesful growth
2013-04-16
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

15. LKAB Malmtrafik AB
2012-09-17
FANOO in traffic 2012-03-01: 1090
Final delivery september 2013: 1134
15

16. 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

17. 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

18. Logistics is key for succesful growth
2013-04-16
WORLD CLASS LOGISTICSYSTEM

19. NEW HARBOUR AND SILOS Logistics is key for succesful growth
2013-04-16

20. GROWTH CHALLENGES
• Capacity on Malmbanan-Ofotenbanen
• Uncertainity about timing for permission handling
• Skills supply
• Attractive communities
• Housings
Foto: Hilde L

21. THANK YOU FOR LISTENING!