SJ Long Distance CrossBorder Services. Copenhagen, September 13th, 2013 Björn Westerberg, Head of Strategy/Business Planning

Transcription

1 SJ Long Distance CrossBorder Services Copenhagen, September 13th, 2013 Björn Westerberg, Head of Strategy/Business Planning

2 SJ s objective: - A modern, profitable and customer oriented travel company - Approx. 4,400 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 Dokumentnamn SJ

3 Rail traffic in Sweden 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

4 SJ Regional SJ High speed SJ InterCity & SJ Night Umeå/Luleå/Narvik

5 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

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

7 Separation and divestment of SJ Public sector Business Administration SJ Banverket Private sector Royal Viking Hotel Jernhusen SJ Ltd Green Cargo SJ ASG Scandlines EuroMaint Swebus Traffic Restaurants SweMaint TraffiCare Unigrid

8 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

9 Markets Gtb-Sto Train Air % 51% % 31% Karlstad-Sto Train Air % 34% % 10% Sundsvall-Sto Train Air % 70% % 34% Malmö-Sto Train Air % 77% % 70%

10 Train vs. flight market 3h! Source: KTH Järnvägsgruppen, Centrum för forskning och utbildning i järnvägsteknik 10

11 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

12 New Competition T2014 STHLM GBG STHLM-MALMÖ Ansökt om 9 tåglägen* Citytåg Ansökt om 4 tåglägen* Ansökt om 2 tåglägen (loktåg 160km/h) Ansökt om 2 tåglägen l 160 km/h alt 200 km/h 12 Ansökt om 35,5 tåglägen* (samt 4 tåglägen med loktåg 160 km/h) * Avser snabbtåg, motorvagnståg eller loktåg som går i 200 km/h, hela sträckan, på vardagar, avgångar per riktning. Inlämnad ansökan, beslut e fattat.

13 Challenges Facing full-fledged deregulation Customer satisfaction Improved quality of service Employee contribution Increased participation Sustained profitability Improved productivity Expansion New markets BLS-visit

14 SJs journey of change From TRAIN generics From TRAIN is good for From TRAIN & sustainability From operating TRAINs From information to SJ specifics to SJ is good for to SJ & sustainability to serving customers to dialogue

15 The rolling stock ahead 20 SJ SJ Double deckers 100 RC-locomotives 350 wagons

16 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

17 SJ 2000 Upgrade Technology An SJ analysis suggested the possibility, from a technical perspective, of a life extension of X2000 for the coming years

18 SJ2000 Actions Two projects; Upgrade och Interior Refurbishment Upgrade Interior Refurbishment

19 Very High Speed next step? 20

20 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 B. Westerberg, 21

21 4:40 5:40 Umeå T11 X55 6:30 Best travel by direct train today and with the X250 2:45 3:00 Sundsvall T11 X2 3:10 0:00 Stockholm Stockholm-Göteborg T11 X2: 2:45 2:30 2:45 Journey with X2/X55 Rounded to the even number of minutes Including normal additions 4:40 5:40 Göteborg-Malmö T11 X31: 2:30 Stockholm-Malmö T11 X2: 4:04 2:00 2:10 3:35 4:00 22 Assumption: the infrastructure is adapted to 250 mph in the relevant section of the lines

22 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 23

23 CROSS BORDER SERVICE Denmark Malmö - Hamburg

24 Long-distance travel with all modes mapped on the road network The largest future high-speed markets: 1. Stockholm-Malmö/Kph 2. Stockholm-Göteborg 3. Stockholm-Sundsvall-Umeå 4. Göteborg-Malmö-Kph 25 Framtid

25 SJ in Danmark today SJ Danmark A/S created 2010 Travelstore with customer service Traffic Management Managing Director Antal sålda resor i Danmark snitt per mån T/R Stockholm-Köpenhamn Må-Fr 6 tågpar/dag Lördagar 5 Söndagar Sålda resor butik Automater

26 The Danish Market - Overview Same amount of travel as in Sweden but shorter journeys 200 Antal resor (miljoner) Pkm (miljoner) S-tåg SL Övr Övr Övr SJ Egentrafik SJ Egentrafik D a n ma r k S v e r i g e D a n ma r k S v e r i g e Interesting routes, i.e. Köpenhamn-Ålborg 2,400 M Pkm 2,500 MSEK omsättning Källa: Offentlig statistik Sverige och Danmark; Danmarks transportministerie

27 Strong growth for train travel in Danmark Växt i resor från 2010, fram till 2017

28 Opportunities for expansion: Scandinavian High Speed Network Uplandsstorlek och resefrekvens 29

29 Initial analysis of relevant passenger routes indicate total addressable market of ~ trips 1 /year Estimated number of trips (north and southbound) Preliminary estimates 1 Routes Malmö-Hamburg Preliminary estimates Air: th. trips Car: th. trips Train:15-20 th. trips Approximat e travel time 5 hours Current rail market share 8-9% Target rail market share Max 15% Addressable market th. trips 2 Malmö-Berlin Air: th. trips Car: th. trips Train:15-20 th. trips 7 hours 5-6% Max 10% th. trips 3 Copenhagen- Hamburg Air: th. trips Car: ~650 th. trips Train: th. trips 4,5 hours 16-20% Max 20% th. trips 4 Copenhagen- Berlin Total Air: th. trips Car: th.trips Train: th. trips th. trips 6,5 hours 12-14% 12-14% 1. Northbound and southbound trips included Note: Passengers traveling with night train are omitted Source: LFV; SLV; Luftverkehr; "Trafiken över Öresund" ( SJ interviews; BCG estimates and analysis Max 15% ~16% th. trips th. trips av. 425 th. trips

30 Possible Timetable Malmö-Hamburg SJ 2000 Sth 200 km/h Malmö C avg avg 0:00 Kastrup ank 0:17 Köpenhamn H ank ank 0:29 Köpenhamn H avg avg 0:34 0:05 Ringstedt I Nyköping I Oldenburg i H. I Lübeck Hbf ank 2:29 Hamburg Hbf ank ank 3:02 Hamburg Hbf avg avg 3:07 0:05 Berlin ank ank 4:47

31 Possible time table Göteborg-Hamburg SJ 2000 Sth 200 km/h Göteborg C avg 0:00 Mölndal I Varberg I Halmstad C ank 0:55 Helsingborg C ank 1:27 Lund ank 1:51 Malmö C ank ank 2:01 Malmö C avg avg 2:06 0:05 Kastrup ank 2:24 Köpenhamn H ank ank 2:35 Köpenhamn H avg avg 2:40 0:05 Ringstedt I Nyköping I Oldenburg i H. I Lübeck Hbf ank 4:35 Hamburg Hbf ank avg 5:09

32 Reach from Köpenhamn

33 Conclusions Travel times Malmö-Hamburg on <3h is competitive! Göteborg-Malmö-Hamburg on 5h is o.k. Stockholm- Hamburg on 8h is too long Currently, the travel market Malmö-Hamburg is less than Stockholm-Göteborg A strong connection can generate substantial increase in travel, compare Öresundsbroeffekten

34 Two arenas for international competition relevant for SJ Secure Scandinavian leadership Establish European position Focus on Swedish domestic market and key Scandinavian routes International expansion, to/from and outside Sweden/Scandinavia SJ can play in both arenas alone or together with one or multiple partners

35 Thank you