Japan-Sweden Railway Industrial Business Forum

Tokyo, May 15, 2015

Björn Westerberg

ASTOC

ASTOC

Rail traffic in Sweden

Trends Railway 2050

EU

Agenda

BotniaTåg AB

Keolis Sverige

Nordiska Tåg AB

TMRail AB

Tågåkeriet i Bergslagen AB

Ansaldo STS Sweden AB

Associate members

45 members of which 10 are associate members

Passen

gers

F

reig

ht

Swedish railway 2015

Rolling stock maintenance and renovating

Train manufacturers

Rolling stock owners

Certification/Safety Market control

Infrastructure Manager

EuroMaint Rail Mantena Bombardier Alstom DSB Vedligehold Midwaggon mgw Service

Jernhusen A-train SL kommuner Train Alliance

SJ, Veolia DSB, MTR Arriva A-train Tågkomp.

Motala Trains MiTrans

Bombardier Alstom Stadler Siemens Ansaldo

SPFs memb. Transitio SL SJ DSB

RKTM IBAB Green Cargo Hector Rail TÅGAB RushRail TX Logistik m fl

AlphaTrains Mitsui Railpool Hector Rail Green Cargo

InfraNord Strukton VR Track Baneservice

Infrastructure maintenance

Regional public transport agencies

Train operating companies

Trafikverket Transportstyrelsen Konkurrensverket

Properties Train stations Depots Terminals

Quality - Capacity – Competitiveness

The Swedish railway sector needs more

effective cooperation

ASTOC

Rail traffic in Sweden

Trends Railway 2050

EU

Agenda

7

• Sweden has more than 12,000 km of railway track

– 2,000 double tracks

– 10,000 single tracks

Rail traffic in Sweden

Strong growth of railway services in

Sweden

• Since the early 2000’s both passenger and freight

services have experienced a strong growth

• Important factors behind this development:

Structural reforms and market opening

Infrastructure investments

Regional development

Market development

0

20

40

60

80

100

120

140

160

180

200In

dex

(1

98

8=

10

0)

Passenger traffic (passenger km)

Freight traffic (tonne km)

Source: SIKA/Trafikanalys

Development of Cargo traffic by train millions tonkm

0

5 000

10 000

15 000

20 000

25 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Market development of regional and long distance travel

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

1950 1960 1970 1980 1990 2000 2010

Mil

jard

er

pe

rso

nk

ilo

mte

r

Persontrafik på järnväg

Långväga resor > 100 km

Regionala resor < 100 km

Källa: KTH Järnvägsgrupp

SOURCE: SJ 11

Market development and new entrants

- passenger

0

2000

4000

6000

8000

10000

12000

Pas

sen

ger

traf

fic

(mili

on

pas

sen

ger

km)

SJ Other companies

The car is the train’s major competitor, when it comes to traveling further than 10 miles

8% 15%

6%

Norwegian

SAS

Malmö Aviation

Sverigeflyg

Swebus

Bus4You

Arriva Abellio

SJ

MTR

Arriva

Abellio

Veolia

Tågkompaniet

Blå Tåget Länstrafikoperatör

er (RKTM)

70%

Advantage Passenger Rail

sid 14

Källa: Trafikanalys

Järnväg 2050

Index 1

992

ASTOC

Rail traffic in Sweden

Trends Railway 2050

EU

Agenda

Challenges for Freight

• Need for consistent and high quality logistic chains

• Need for longer trains

• Competition with truck traffic - Longer and heavier trucks and low-wage cabotage by road

• Reduces volumes and margins

• Cost increases in terms of track charges and funding of ERTMS onboard equipment

• Deficiencies in maintenance and maintenance liability

• Reductions in speed on some sections of track

• Closures of low density lines which are vital for the economy, industries and employment along the path

• Rail freight will lose market share to road

BLS-visit 2009-07-09 17

Facing full-fledged deregulation

Customer satisfaction Improved quality of service

Employee contribution Increased participation

Sustained profitability Improved productivity

Expansion New markets

Challenges

Continuous improvement and business development

Digitalisation Examples from Passenger operator

Migration from manual to digital channels

19

Offline/FullService Online/SelfService

Direct/Own Travel shop Contact Center

SJ.se, Mobil.sj.se Mobile app Vending machines

Indirect/Agent Travel agency Resellers

Micro sites / widgets Partners / affiliates

94 %

Strategy •Meet new customer habits •More efficient sales & service

Active shift for digitalisation

Goal • 94% sales via own

digital channels

Mobile applications facilitates travelling both for customers and employees

20

Traffic info

-Real time and transparent -Map view or route view -Follow your (or other trains) -Detailed info if disturbances

Travel agency in your pocket -Purchase ticket -Change or cancel your booking -Overview over all trips

Loyalty program

-Manage loyalty points -Pay witth loyalty points -Manage your details

• Added value – Customers expect B2B to be as developed as

B2C – Customer relations, employee tools, data and

information, security.

• Quick wins. – Information portals, secure information,

updated information

• 2016/2018 – Extensive investments and building of internal

IT-Capability

• Need for rapid deployment – Short term temporary solutions, long term

focus with clear benefits

• Regulatory framework – Modern IT compliance

• Standardization – Cross-border customer demands but do not over

complicate.

Digitalisation Examples from Freight operators

New business opportunities created by new capacity

Fehmarn Bält 2024

Ostlänken 2028

New High Speed tracks 2035

ASTOC

Rail traffic in Sweden

Trends Railway 2050

EU

Agenda

Kapacitetsutnyttjande under högtrafik 2013 Källa: Trafikverket, grafisk bearbetning SWECO

Tomorrow’s railway

• New capacity • Reduced traveltimes • Increased traffic frequency • Reduced CO2 emissions • Larger regions, increased labour

markets

• Start coordinated planning for the long term today

• There is a need for 400 Billion SEK • Focus on a sustainable and

competitive development of infrastructure and maintenance

Need for coordinated planning

and investments!

Passenger traffic • Existing and new tracks • Railway traffic • Housing • Labour market • Education and innovation • Regional and local public transport • International connections • Cycling and walking • Travel centers • Etc.

Freight traffic •Tracks •Harbours •Intermodal terminals •Industrial links •Education and Innovation •International connections

Need for coordinated planning and investments!

sid 28

Vision Railway 2050!

x2 x3

ASTOC

Rail traffic in Sweden

Trends Railway 2050

EU

Agenda

• New European Parliament 2014, New TRAN Committee, new Chairman Michael Cramer

• New Commission, Juncker-Package

• New Transport Commissioner Violetta Bulc – EU White Paper 2011 review, Digitalisation

• New Presidency , Latvia

• New Managing Director of ERA , Joseph Doppelbauer

• Focus on implementing the 4th Railway Package - Political Pillar and Technical Pillar

– T

”New EU”

30

Latvia Luxemburg

2015

4RP Political Pillar: Market opening and Governance

31

Market opening - Yes

Infrastructure - Integrated model

Infrastructure - Separated model

Market opening - No

Status 4RP 2015?

32

Lettland Luxemburg

Political Pillar

Technical Pillar

13 M

ars

TTE C

ouncil

11 Ju

ni T

TE C

ouncil

Key issues for the European railway from Swedish operators perspective

• Accessibility, drives the need of standards (ERA), simplified administration, investments in bottlenecks

• Functional specifications and less regulation

• ERTMS, verification and funding

• Corridors in Europe, TEN-T, need of a management committee with the right resources

• Funding opportunities of TEN-T

• Taxation, harmonizing the different modes of transportation, climate taxation and VAT

• Approval of the 4th Railway Packages

• Fair competition from trucks

• The increased need for European infrastructure investments (rolling stock, maintenance etc.) requires external funding

Thank you!

Björn Westerberg, CEO, ASTOC

Mobil: +4673 - 802 67 11

E-post: bjorn.westerberg@tagoperatorerna.se

ありがとう

Arigatō!