LKAB Malmtrafik has signed a 5-year agreement with Railcare relating to transport of iron ore for the period 2025 to 2029. The agreement is worth an estimated SEK 70 million annually, totalling SEK 350 million. The agreement also includes an option for LKAB to extend the assignment for a further three years after the end of the agreement period, worth a potential SEK 210 million. If the need for transport changes, LKAB can cancel or reduce the scope of the agreement with some advance notice.
The new agreement relates to transport of iron ore for the period 2025 to 2029, worth an estimated SEK 70 million annually. It also includes an option to extend the transport assignment for a further three years after the end of the agreement period, worth a potential SEK 210 million. The agreement includes an option for LKAB to reduce the scope of the agreement to at least half capacity with six months’ notice, as well as a mutual option to terminate the agreement at the earliest after two years with a notice period of 12 months, if the need for transport changes.
“We are delighted that LKAB has shown us this confidence, after having worked for the company on shorter assignments over the past few years. This long-term agreement offers confirmation that our customers prioritize delivery reliability in high-value transports, where the logistics are an important part of the value chain. The agreement ensures stability and a long-term approach in the transport operations,” Mattias Remahl, CEO explained.
Railcare carries out the transports using its own locomotives and drivers, and LKAB’s wagons. The locomotives are equipped with ETCS on-board systems, compatible with the new ERTMS signalling system.
