08 February 2010

3PL Division reported a 15.0% rise in growth

The recession hit GreenCargo very sharply in 2009, despite achieving a profit in the second half of the year (H2 2009) as a result of multiple Group action programmes. Rail transport volumes declined by 24.0%, which contributed to the Group's €21.5 million loss after financial items. However, the Group’s action programmes will continue and are on target to reduce Green Cargo’s costs by more than €58.0 million by 2012.

The recession affected Green Cargo’s customers in, for example, the steel and motor industry, very hard, which had a significant effect on transport volumes. Positively, the Company signed new or extended agreements during the year, including with Outokumpu Stainless, Trätåg AB, Akademibokhandeln, Berling Media, Swedish, Shell, Nestlé Sweden AB, Berntsson Brands AB, Domaine Wines and Volvo Logistics.

Quality, measured in terms of punctuality to customers, maintained a high level throughout the streamlining process. Freight trains achieved 95.0% punctuality to customers for the third quarter in a row, despite a fall in December due to winter problems. Traffic safety achieved its best result since Green Cargo was established in 2001. Green Cargo’s third-party logistics division recorded its best year, with profitable growth of 15.0%.

Gross investments in 2009 amounted to €89.5 million, mainly in new and modernised trains, wagons and store roms. The first modernised diesel trains will be delivered and put into service in 2010 with a better work environment and new engines that reduce CO2 emissions by around 20.0%