“The Ofot Line looks set to become even more important in the years to come, not least in light of the increasing defense cooperation under NATO auspices”, the Norwegian Railways Directorate (Jernbanedirektoratet) highlighted. A stronger Europe, under a military perspective, became a priority in the Union since the Russian invasion of Ukraine in 2022.

The upgrades

Concerning the Narvik rail freight terminal, a first 50% capacity increase was implemented in 2022. “There are plans to expand and develop the terminal area in Narvik even further”, the Jernbanedirektoratet specified. The upgrade here will specifically keep military mobility needs into account.

For the Narvik station, the plan entails the addition of separate tracks at the entrance of Narvik so that LKAB’s iron ore trains can travel on a ‘private’ section. This new bundle will also allow for the transit of 740-metre trains. To increase the axle load from 31 to 32.5 tonnes, the sleepers will be replaced with concrete ones, with tests underway for sleepers made of composite.

Benefits for LKAB

Improving the Ofot Line should also bring development for the transport of iron ore and LKAB, Europe’s largest mining company. LKAB sends some of its ore mined in Kiruna, Sweden, to the port of Narvik along the northern branch of the Iron Ore Line. However, the state of the line has been a problem for the mining giant for a few years now, even leading to the closure of some mines.

The improvements planned in Norway will increase available capacity and axle load, meaning the more and heavier trains can be deployed. In theory, this will create a better infrastructure for LKAB. Sweden is also working on improving the Iron Ore Line, which over the past couple of years saw multiple derailments leading to long closures and the aforementioned problems for LKAB.

Doubling trains to Oslo

Other than benefitting NATO flows and iron ore traffic between Narvik and Sweden, the initiative will provide additional capacity along the Narvik–Oslo axis, the Norwegian Railways Directorate added. “The plan is that it will be possible to run as many as six pairs of trains, each 740 meters long, daily between Oslo and Narvik. This will mean more than a doubling compared to today”, the institution said.

For example, much military equipment enters Scandinavia through Norway’s Narvik port, where the only rail connection leads to Sweden’s Malmbanan. From there, equipment can continue its trip to the south and east. This is exactly what happened during NATO’s Immediate Response exercise earlier in 2024.

“Good Nordic cooperation”

“The agreement is a direct result of Bane NOR’s role in total defense and the good Nordic cooperation on social security and transport preparedness. The agreement involves a significant improvement in capacity for military transport on the railway both in Norway and Sweden, between the countries, and to other countries in Europe”, Bane NOR’s CEO states.

As part of the military logistics streamlining effort, Sweden also intends to upgrade infrastructure along the Malmbanan. While reference is often made to the route’s importance for northern Sweden’s mines, its connection to Narvik makes it a crucial military logistics route as well. Swedish authorities have specifically pointed to the country’s NATO membership as a reason to upgrade the line.

Also for civilian use

When not in military use, the specification requirements in the deal make sure that the wagons can be employed for civilian use as well. Bane NOR can use purchased Norwegian wagons internally or rent them out for civilian freight transport that includes heavy loads. “This is important to keep the wagons in good condition and ready for use, and also increases capacity in civilian freight transport”, according to the Norwegian company.

The lack of capacity along the Iron Ore Line, also known as Malmbanan is having a significant impact on LKAB’s business. The company is even considering closing one of their facilities, either in Kiruna or Svappavaara, with hundreds of jobs at risk. The situation concerning this railway was made even more complicated by two derailments, which interrupted rail freight traffic for almost three months between December and February. On a brighter note, the Swedish government recently decided to prioritise and prepare upgrades that would increase capacity along the Iron Ore Line.

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Now, Swedish rail publication Järnvägar reports that DB Schenker is no longer satisfied with the prices offered by Green Cargo. Green Cargo has been demanding larger sums of money for its services. Additionally, negotiations with other freight train operators have not yielded any tangible results.

Onrail steps in

DB Schenker has now signed a 3-year agreement with Onrail, and the Norwegian rail operator is set to replace Green Cargo on the NRE. “We believe that we can develop traffic and improve profitability”, says CEO Henning Aandal. “We hope to be able to run the route in less than 24 hours, a few hours faster than trains currently running.”

The NRE is an import transport route for consumer goods, which head north towards Narvik, as well as fish, which are transported southward. Onrail says that they have deals with various interested shippers. “DB Schenker will transport large volumes with our train and we have signed agreements with other transport buyers for train freight between Oslo and Narvik.”

Service improvement

Onrail seeks to improve rail transportation on the route by using two locomotives and having fewer driver changes.

“We will eventually run with two locomotives in each train to reduce the risk of disturbances, to be able to transport more seafood, to be able to quickly climb the slopes on the Ofotbanen and on the Stambanan through Övre Norrland and to be able to accelerate a little faster after all the train encounters”, CEO Henning Aandal says.

Aandal adds that Onrail intends to employ drivers on longer sections of the route than its competitor Cargonet. “We will employ Swedish train drivers for the intermediate section, but we want to have as few train driver changes as possible to reduce the driving time between Oslo and Narvik”, he says.

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Moving passengers to buses to leave room for freight?

The situation is already worrying, as LKAB said it had to reduce production in Malmberget because there was not enough capacity to transport raw materials from Svappavaara. Production in Malmberget has already decreased by one million tonnes per year, which translates into an annual revenue loss of 86.8 million euros at the current prices (one billion SEK).

“If we cannot, together with the Swedish Transport Administration (Trafikverket) and Norwegian BaneNor, seriously increase the capacity within the existing system, we will be forced to take even more drastic measures”, LKAB underlined. One of the possible solutions mentioned by the LKAB spokesperson is to transfer passenger services from trains to buses in specific sections of the line and times of the day. This would ensure more capacity for freight trains.

LKAB is produced 26.2 million metric tonnes of iron ore in 2024 out of 38 total in Sweden. The country produces around 90 per cent of the European iron ore, making it a key player for the steel industry among others. The vast majority of LKAB’s iron ore travels on freight trains along the Iron Ore Line, which connects the Swedish port of Luleå to the Norwegian port of Narvik.

Recent derailments didn’t help

The disastrous situation for LKAB was amplified by two derailments near Vassijaure that cut off rail access to the Norwegian port of Narvik. The first one occurred on 17 December and led to the railway being unusable until 20 February. On 24 February, however, another freight train derailed and the line was closed again until 6 March. The spokesperson clarified that the cut of production was not caused by these derailments, but the general lack of capacity along the line. Sill, the derailments caused daily losses for 8.6 million euros for LKAB.

“For the past 20 years, LKAB has pointed out the risks of the railway’s lack of capacity, the need for extended maintenance of the existing system and the need for double track”, the company claimed. The company also underlined how, for its part, it made significant investments including more wagons, a locomotive workshop and a wheelset maintenance facility. Recently, Trafikverket was commissioned by the Swedish government to prioritise projects along the Iron Ore Line. Most of them should focus on facilitating the traffic of trains with an axle load of 32,5 tonnes compared to the current 30.

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Now, the Swedish government has instructed the country’s transport administration to prioritise and prepare upgrades on the Iron Ore Line. Recently, the line was out of operation for approximately 80 days after two derailments. The reopening of the line after the first derailment in December 2023 was followed by another derailment four days later.

Sounding the alarm

Consequently, 60 large businesses and decision-makers sounded the alarm and appealed to the government to take action on the Iron Ore Line. According to Swedish media, mining company LKAB loses about ten million euros a day when the line is not operational. Military experts also pointed to the strategic importance of the line.

The government has now commissioned the Swedish Traffic Administration to prioritise work on the line. According to a report by the administration, two railway yards will be extended along the line, as well as four rendezvous points. Between the mining towns of Svappavaara and Kiruna, the railway will be upgraded in order to facilitate trains with an axle load of 32,5 tonnes. Currently, the maximum axle load is 30 tonnes. This would mean that each train could carry an additional 680 tonnes of ore.

Likewise, Sweden plans to upgrade the rail between Kiruna and the Norwegian border to facilitate trains with a maximum axle load of 32,5 tonnes. Additional crossing points for reindeer and other wild animals will also be added to the line. Lastly, the upgrades include track, catenary and switchgear replacements.

Capacity

By 2030, the Traffic Administration expects that the daily number of trains running on the Iron Ore Line will increase by 8. On its most busy segments, 34 freight trains will pass on a daily basis, up to a total of 53 trains per day, including passenger trains.

Without any upgrades on the line, capacity usage may increase up to 92 per cent by 2030. The line between the towns of Boden and Luleå, an extension of the Iron Ore Line, would go over capacity. If the envisioned upgrades are carried out, the Iron Ore Line would be kept at a capacity of approximately 70 per cent, whereas the planned double track between Boden and Luleå would limit usage on that section to 40 per cent.

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