Railcare AB has secured a five-year contract with LKAB Malmtrafik for raw material transport from 2025 to 2029. The agreement is estimated to be totaling SEK 350 million (EUR 30 million) over the period.
The contract includes an option for LKAB to extend the partnership for an additional three years, potentially increasing the total value by SEK 210 million (EUR 18.4 million). The agreement allows LKAB to cancel or reduce the scope of the assignment with prior notice if transport needs change.
Under the terms, Railcare will provide locomotives and drivers, while LKAB will supply the wagons. The locomotives are equipped with the European Train Control System (ETCS), preparing them for the upcoming European Rail Traffic Management System (ERTMS).
There is also a mutual option to terminate the agreement after two years with a 12-month notice period if required.
