Changes in the railway sector
In Spring 2015 the Norwegian parliament passed the government’s proposal for significant changes to the railway sector in Norway. This railway reform will have major consequences for the NSB Group.
The main changes consist of:
- // a railway directorate will be established
- // an infrastructure company will be established
- // ROM Eiendom will be transferred to the infrastructure company
- // Mantena will be transferred to the Ministry of Transport and Communications
- // all rolling stock is to be transferred either to the infrastructure company or to the Ministry of Transport and Communications
- // current passenger train operations run by NSB AS will be put out to tender in six to eight traffic packages
Passenger train operations
The positive trend, with an annual growth rate of about 6 per cent in passenger volume, has continued in 2015. NSB has laid the basis for increased passenger volume in Eastern Norway with new trains and a new route model that better covers passenger needs. On long distance routes, Oslo–Trondheim (Dovrebanen) and Oslo–Bergen (Bergensbanen) show a particularly positive development in passengers carried, with daytime departures showing 6.8 and 7.2 per cent growth respectively.
Customers regularly express satisfaction with the services provided by NSB. The customer satisfaction index (CSI) supports this and showed a welcome increase of 3 percentage points, up from the previous year’s figure of 70 to 73.
In the Norwegian state budget for 2016 NSB was given a residual value guarantee for the purchase of 44 new trains. Delivery is planned starting from 2018 and until 2020 and will ensure rolling stock renewal both in and outside Eastern Norway.
These trains are planned to replace those running on the Bergen-Voss (Vossabanen) and the Oslo-Gjøvik (Gjøvikbanen) lines. Furthermore, some of the new trains will be allocated to Eastern Norway to ensure more double trainsets running during rush hour.
A new contract won by Svenska Tågkompaniet AB
NSB’s subsidiary in Sweden, Svenska Tågkompaniet, is to run regional rail traffic in northern Sweden for the next nine years. Start-up will be 20th August 2016. Svenska Tågkompaniet has selected Euromaint as supplier and partner for the maintenance of these trains – an integral part of this contract.
Every fourth ticket sold by our app
Ticket purchase and e-ticketing using the NSB app are increasingly popular. Today every fourth ticket is sold using the app. More NSB passengers now also choose to use NSB’s entertainment app during their journey, giving them access to audio books, electronic newspapers, podcasts and music.
Nettbuss has secured several important contracts in Sweden and Norway, starting in 2016.
Contracts in Sweden
The county transport authority, Länstrafiken, has awarded Nettbuss the contract to operate bus traffic in Östersund (mid Sweden). The contract is valid for five years from 13th June 2016. The Gothenburg area transport authority, Västtrafik, awarded Nettbuss two contracts, one for local traffic in Fyrbodal and another for two express services in the Gothenburg area (the Red and Purple lines). The contracts run for 10 years commencing on 1st July 2016.
Contracts in Norway
The county transport authority, Hedmark Trafikk, has awarded Nettbuss the Glåmdalen contract. This contract is for ten years from 1st July 2016. Nettbuss also won back bus services in a large part of Sunnmøre (mid Norway) based on two nine-year contracts commencing on 1st January 2016. In addition, Nettbuss were awarded a 10 year contract commencing on 10th October 2016 for Indre Nordmøre (mid Norway), and a seven-year contract commencing on 1st July 2016 for Grenland in southern Norway was recaptured.
Moreover Brakar (Buskerud county) awarded Nettbuss the contract for the bus service between Oslo and Hønefoss. The contract commences on the 1st August 2016 and lasts for six years. Nettbuss was also successful in Jæren and in Dalane, both contracts commencing on 1st July 2016 and lasting for eight years.
Decreasing passenger volume between Sandnes/Stavanger and Bergen resulted in Nettbuss shutting down the route from autumn 2015. The route made a loss initially and passenger growth did not meet expectations. The decline in traffic followed the downturn in oil-related activities worsening during the autumn.
Over a period the business has been through major restructuring to improve results and streamline operations. This has given good results so far and efficiency measures are to continue.
Major changes and restructuring in freight operations have been introduced giving positive financial and operational effects. Streamlining of operations continues in 2016.
New freight services
CargoNet has established new freight services in 2015. A direct service between Trondheim and Mosjøen to the north has been established, creating transit opportunities to and from the other terminals in CargoNet’s network. In cooperation with DFDS Seaways and North Sea Terminal a direct transport connection has been established between Brevik (on the south coast) and both Bergen and Oslo, with direct links to the Continent and Britain.
Realignment and reorganisation
Mantena has reorganised its operations to meet increased demands to deliver cost-effective services in a competitive market.
Mantena has won contracts with Svenska Jernbanen (SJ) in Sweden for maintenance of SJs own rolling stock starting in 2016, but lost the contract with Botniatåg on the Baltic coast.
A new agreement for urban development in Drammen
The Drammen municipality, ROM Eiendom and Jernbaneverket (the railway Infrastructure manager) have agreed to ensure positive urban development on railway properties in Drammen, and have signed a new cooperation agreement for the development of these properties. This means specifically that ROM Eiendom can now go ahead with its hotel plans at Drammen station.
More places to park bicycles
ROM Eiendom has finalised plans for new bicycle parking at Oslo S. This will make an important contribution to facilitate cycling which the city of Oslo emphasises and promotes. Initially, 250 new cycle parking spaces can be built using existing buildings at Oslo S.
In 2015 the office building in Munkedamsveien 62 in Oslo was completed and sold. The sales agreement for this building was signed even before construction started. The buyer was a consortium of RS Platou and Fabritius AS. Alf Bjerckes vei 30 at Alna in Oslo, which was developed together with Aspelin Ramm Eiendom AS, was sold to Braathen Eiendom. ROM Eiendom AS and Aspelin Ramm Eiendom AS owned 50 % each of this building.
Bestselling housing projects
The apartments at the Grefsen station transport hub in Oslo are Norway’s bestselling housing project. Almost 1200 apartments will be built here altogether, jointly developed with JM Norge. In 2015 155 apartments were sold in this project.
Housing project in Bjørvika
Through Oslo S Utvikling AS, ROM Eiendom participates in developing Bjørvika. Both residential property and commercial properties are being developed. In 2015 the development of residential properties was the main focus, and 57 apartments were sold last year.
Sale of land in Bjørvika
ROM Eiendom has sold its remaining properties in Bjørvika to the part-owned joint venture Oslo S Utvikling AS. In total aproximately 100 000 sq m is to be constructed on the relevant sites, of which about 25 % is commercial and 75 % residential.
The sales price for the land option was 543 MNOK. Estimated net profit for the NSB Group amounts to 285 MNOK.