Renewal of contract with ScandFibre means 50% growth

Hector Rail and ScandFibre Logistics have signed a new contract. The operations start on 12th December 2010 and the contract will have a length of six years. Compared to the current contract, in operation since June 2005, Hector Rail will also be responsible for international traction services. The new contract means a growth of approximately 50 % compared to the current contract. For example, the new contract will demand six locos in daily operation compared to four locos in the existing contract.

ScandFibre Logistics is owned by a number of paper companies located in Sweden. The paper companies consolidate their volumes into ScandFibre and ScandFibre creates an innovative rail logistics concept. The concept is one of the largest rail freight operations in Europe with a transported volume of 2.4 million tons. Since June 2005 Hector Rail has been one of the major suppliers to the so called Rail 99 system.

From 12th December, the Rail 99 system will be succeeded by the even bigger Rail 11 System. Hector Rail has from that day and for the coming six years been awarded with an extended responsibility. Hector Rail will run almost two million train kilometres yearly.

In the new contract Hector Rail will run trains from Iggesund, Sweden in the North to Dortmund, Germany in the South. Other locations served by Hector Rail will be Gävle, Norrköping, Hallsberg and Malmö in Sweden and Hamburg-Maschen in Germany.

With the start of the ScandFibre contract all of Hector Rails 10 locomotives able to operate in the transport corridor Scandinavia – Germany via Denmark will be in corridor operation. This means Hector Rail will reach a market share of approximately 25 % in the Danish rail freight market. A unique market share for a private rail operator in a European country.

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