Post on 14-Jun-2015
SJ – from Public Authority
to Limited liability company
Stockholm, April 16th, 2013
Elisabeth Lindgren, Vice President
Markets, Corporate Communication & Sales
2
Sweden has more than
12,000 km of railway track – 2,000 double tracks
– 10,000 single tracks
SJ has a 55% share of the
total Swedish rail market
SJ operates 90% of rail
passenger services in
Sweden exceeding 100 km
Rail traffic in Sweden
• SJ Regional
• SJ High speed
• SJ InterCity & SJ Night
Umeå/Luleå/Narvik
4
SJ AB
Limited liability company
owned by the Swedish state
The mandate
• To operate passenger rail
services
• both in competition and in
co-operation with others
The requirement
• To be profit-making
• 10% return on equity
Dokumentnamn SJ 2004-04-19
SJ’s objective: - A modern, profitable and customer oriented travel company -
Approx. 4,000 employees
Sales of SEK 8.5 billion in 2012
Limited liability company
owned by the Swedish state
110,000 passengers per day
Travel services under our own
brand
Contract rail services for
regional transport authorities
6
Modern milestones that
changed operations
1988 Separation of operations
• Banverket - infrastructure
• SJ - passenger operation
2001 SJ AB was founded
• from Public Authority to Limited liability company
Refined business
• Green Cargo, Jernhusen, Euromaint, EDB, Unigrid became separate operations
SJ as a limited liability Company
- modern history
2001: -49 millions SEK
2002: -994 millions
• ”Bancrupcy”
2003: millions
• 1,8 billions in owner contribution
to stay in business (tax payers)
• New business model
Turn around
2004: 192 millions
• New price model
– dynamic pricing
• 40 new trains are ordered (X40)
2005: 1,2 billions
• Dynamic pricing in both
2 Class and 1 Class
2006: 368 millions
2007: 507 millions
• Internet auctions
2008: 543 millions
• 20 new fast trains are ordered (2 billions SEK)
2009: 460 millions
2010: 294 millions
2011: 38 millions
2012: 498 millions
2004-2012: 4,1 billions
Consolidation
Parameters of success
Institutions of limited liability companies
– means operations on sound economic grounds
Dynamic pricing
Environmental thinking becomes share of mind
Inter city-operations is easy travelling
Modern segmentation of customers
Regional clusters of comuting
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Time to departure, 3 months
Excess supply
Ex
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ss
de
ma
nd
Dynamic pricing
Dynamic pricing
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Time to departure, 3 months
Dynamic pricing
Price index train tariffs Inflation
1985-1995 101% 66%
1995-2005 48% 10%
2005-2010 4% 12%
Dynamic pricing
2005 – 2012
Price index
train tariffs
Inflation
2005 - index 0 0
2006 0 +1
2007 -6 +4
2008 -7 +7
2009 -4 +7
2010 +1 +8
2011 +4 +11
2012 +4 +12
Markets
Malmö-Sto Train Air
2001 23% 77%
2011 30% 70%
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Gtb-Sto Train Air
2001 49% 51%
2011 69% 31%
Sundsvall-Sto Train Air
2001 30% 70%
2011 66% 34%
Karlstad-Sto Train Air
2001 66% 34%
2011 90% 10%
16
Train vs. flight market
Source: KTH Järnvägsgruppen, Centrum för forskning och utbildning i järnvägsteknik
3h!
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Deregulation in three steps Timetable
1. July 2009 – opening of weekend traffic
2. October 2009 – opening of international traffic (cabotage)
3. October 2010 – opening of all markets, general access
The free market argument
Beneficial for passengers
Triggers development and increases efficiency
Also domestic markets should be opened
Abolish monopolies, avoid concessions/restrictions
BLS-visit 2009-07-09 19
Facing full-fledged deregulation
Customer satisfaction Improved quality of service
Employee contribution Increased participation
Sustained profitability Improved productivity
Expansion New markets
Challenges
SJs journey of change
… to SJ specifics
… to SJ is good for
… to SJ & sustainability
From TRAIN generics…
From TRAIN is good for…
From TRAIN & sustainability
… to serving people From operating TRAINs
… to dialogue From information
The rolling stock ahead
38 SJ 2000
40 Double deckers
100 RC-locomotives
350 wagons
SJ 3000 is our latest new train
• 25-40% is recycled – vehicle can be recycled to 98%
• Sorting stations in each car
• Uses 10% less energy compared to SJ 2000
• Regenerative brakes enables - 12% energy recovery
245 seats
Total of 4500 seats
Availability
SJ 2000 Upgrade Technology
An SJ analysis suggested the possibility, from a technical
perspective, of a life extension of X2000 for the coming 15-20 years
27 2013-04-18
SJ 2000 Upgrade
General project instructions:
• The X2 fleet strategy is to keep the trains in service until at least 2035
with high levels of comfort, service and reliability
• The intention is to maintain the position of SJ 2000 as our premium train
service and furthermore enhance their high profile
Long-term flexibility:
• The train sets must, after the refurbishment, be flexible to adapt to future
requirements and changes
28
The refurbished X2 fleet shall improve the general image of SJ,
e.g. in the direction of higher reliability and quality of service
SJ2000 Actions Two projects; Upgrade och Interior
Refurbishment
Upgrade
29 2013-04-18
Interior Refurbishment
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Very High Speed – next step?
31
B. Westerberg,
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Objective for SJ High Speed Trains 250 Km/h on existing tracks
Change the way to travel!
– A new concept that drives travel
– Compare the introduction of the X2000
Starting requirements
– Vehicles on the existing infrastructure
– Standard rolling stock, 250 km / h and tilting
– Sweden, Norway, Denmark and Germany
– Profitable business case
32
Stockholm-Göteborg
T11 X2: 2:45
Stockholm
Stockholm-Malmö
T11 X2: 4:04
Sundsvall
T11 X2 3:10
Umeå
T11 X55 6:30
Best travel by
direct train
today and with
the X250
0:00
Göteborg-Malmö
T11 X31: 2:30
2:45
3:00
4:40
5:40
2:30
2:45
3:35
4:00
2:00
2:10
4:40
5:40
Journey with X2/X55
Rounded to the even number
of minutes Including normal
additions
Assumption: the infrastructure is adapted to
250 mph in the relevant section of the lines
33 Dokumentnamn SJ 2004-04-19 33
SJ main criterias for new rolling stock
Reliable Few errors / delays and cancelled train
Proven solutions to standard vehicle platform
Winter-assured solutions Reliable
Operation: Medium Sized Train => Usability & many seats
Geography: Scandinavia and Germany
Over time: Service Concept & interior design, secondary market Flexibility
Premium Product
Change the way to travel!
Design, service & comfort Image
250km / h speeds important for travel time => tilt
Good performance to make up for delays
Design for short station stop Reduces the risk of delay Short travel time
Standard solutions, production & delivery of quality
Approved vehicle platform (for EU countries) => lower risk Fast delivery
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Need for an upgraded infrastructure Technical issues for 250 km / h
Rail track technology
• Cant deficiency
• Rails, switches, track forces
• Buoyancy in the embankment
• Track Geometry, line optimization
• Track Location
• Line Conversion
• Bridges
• Catenary
• Level crossings
• Signalling system
• Bypass Track
Traffic Issues
• Tilting
• Station Passages
• Noise
• Passing clearance between trains
• Winter Properties
• Capacity
Thank you elisabeth.lindgren@sj.se