Swedish Green Cargo: heavy investment in intermodal traffic to double its existing volume

Petr Sarovsky, Published on 17/06/2022
Swedish Green Cargo: heavy investment in intermodal traffic to double its existing volume
@greencargo.com

Finances will create the conditions for a freight volume growth of 2 million tonnes, which corresponds to 10% of Green Cargo's total transport volume at present.


A pure green growth deal for both society and Green Cargo, says Ted Söderholm, CEO of Green Cargo.

Ever since the financial crisis, rail has struggled to regain lost market share in competition with cheap road transport. The transport sector accounts for one-third of emissions and long-distance fossil-fuelled truck traffic has increased at a time when emissions need to be reduced. Both the EU and Sweden have transport policy objectives to move more freight onto rail, given its high energy efficiency and low emissions. Rail transport accounts for less than one percent of the transport sector's total carbon dioxide emissions while accounting for 24 percent of total freight transport and seven percent of passenger travel.

"A single locomotive driver can pull 40-50 units on rails with an electric train, compared to 40-50 trucks that require the same number of drivers on the E4 when there is a driver shortage at the same time. It is resource-efficient to use the high-capacity railway for the long distance between a port and a combined transport terminal. At the same time, it creates a demand for more local, shorter lorry journeys to and from the combined transport terminal. It's an energy-efficient and climate-smart transport chain," says Ted Söderholm.

The greatest potential for non-organic growth in rail transport is in international freight traffic, which generates millions of long-haul truck journeys per year in Sweden. Factors such as rising fuel prices and a widespread driver shortage in Europe have driven up freight rates for long-haul road transport. This has led to an increased demand for intermodal transport, where a container or trailer, for example, uses several modes of transport in the transport chain.

"If our application is approved, we will be able to offer an efficient network for intermodal transport as part of our existing transport network. This means cutting lead times by up to 30%, higher transport frequency, and, above all, better punctuality. Handling will be simplified, fill rates will be higher and, as a result, market prices will be competitive and predictable. These are factors that customers demand," says Ted Söderholm.

Green Cargo is owned by the Swedish State. We transport 21 million tonnes of freight, have 1,900 employees, and annual sales of about SEK 4,2 billion (2021). Electric trains make up over 95 percent of our ton kilometrage, meaning the climate impact is next to zero.

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