LKAB's ore is transported by train along the Ore Railway and the Ofoten Railway, to the shipping ports in Luleå and Narvik. The ports constitute the backbone of our logistics system and our business.
LKAB's competitive opportunities on a global market are based on us being a leading logistics company, both above and below ground. From mining underground, through the refinement process and on to the shipping ports, millions of tonnes of iron ore products are handled every year. This has made LKAB one of Sweden's largest freight carriers, responsible for around 35 percent of the freight on Sweden's railways. This imposes demands for a world-class logistics system.
Since 2005, LKAB has conducted extensive investments aimed at increasing the flexibility of our logistics. More passing places for the trains on the Ore Railway, as well as investments in our harbours, will provide increased opportunities to adapt our production. For example, we have invested in storage capacity in the Port of Narvik, improved tracks, new terminals, a new shiploader as well as ore wagons and locomotives.
Rail transport
With relatively few options for intermediate storage, one of our most important goals is to get out as much volume at as even a rate as possible. The short distances to the shipping ports provide LKAB's rail transport with clear competitive advantages in terms of both cost-effectiveness and sustainability.
LKAB currently has 17 IORE locomotives in operation. The locomotives are designed for extremely heavy rail transport and, with a traction of 1,200 kilonewtons, they are the world's strongest locomotive.
You can read more about rail transport here.
Harbours
We are able to optimise the logistics flows through these two harbours depending on the customer's location. Two-thirds of the seaborne transport is shipped out from Narvik, on the Norwegian Atlantic coast. One-third is shipped out from Port of Luleå on the Gulf of Bothnia coast, which is strategically close to some of our European customers.
Narvik harbour is LKAB's largest harbour and has a capacity of almost 30 million tonnes per year. The ore harbour in Luleå has a capacity of 6 million tonnes per year, and an expansion of the capacity up to 8 million tonnes per year is currently in progress.
You can read more about the harbours here.