Our operations in 2009

This information pertains to 2009. All amounts are expressed in SEK million, unless otherwise specified.

THE GROUP

The Parent Company, Green Cargo AB, is a freight transport and logistics company with Sweden as its primary market. Its vision is to be the market leader in the logistics sector, basing its services on and contributing to sustainable national and international development. Rail transports form the core of our operations. Road transports are a secondary service, although the combination of rail and road is becoming a more frequent component in our offer. To offer end-to-end logistics solutions, Green Cargo also provides third-party logistics, which includes warehousing, handling and distribution. Our largest customers are in the steel, chemical, automotive, engineering, forestry and retail industries. Green Cargo AB is organised into three operational areas: Rail, Road and Logistics. The business is divided into five divisions: Marketing & Sales, Customer Service, Operations, Road and Logistics. All divisions are responsible for their own profitability. There are also seven staff functions. Green Cargo is fully owned by the Swedish State, managed by the Ministry of Enterprise, Energy and Communications and is part of the group "Companies with market-based requirements".

In addition to the Parent Company, the Green Cargo Group consists of four subsidiaries, Nordisk Transport Rail (NTR) AB, TGOJ Trafik AB, Hallsbergs Terminal AB and Green Cargo Road & Logistics A/S, and three associated companies, CargoNet AS, DB Schenker Rail Scandinavia A/S and SeaRail OY. These companies are controlled primarily via board representation. All transactions between the Group companies take place under market conditions. Read more about Green Cargo's subsidiaries and associated companies under the Finance target area.

GROUP CHANGES IN 2009

During the year, the companies in the Finnish associated companies SeaRail EEIG and Railtrans OY were merged into SeaRail OY. As a result of the reorganisation, the company now offers efficient logistics solutions for transports primarily between Scandinavia and Russia as well as further east. Ownership of the company is shared equally between Green Cargo and the Finnish rail company, VR Cargo, and will continue to be reported as an associated company. During the third quarter, the subsidiary, Hallsbergs Terminal AB,  acquired an additional 20 percent of the minority subsidiary Hallsbergs Kombiterminal AB. Hallsbergs Terminal AB now owns 80 percent of the company and the remaining 20 percent is owned by CargoNet.

KEY EVENTS IN 2009

The economic recession brought lower transport volumes, which, during the first half of the year, fell almost 30 percent compared to the previous year. In order to counteract this fall, decisions were made to make additional cost cuts, adjust production levels and increase efficiency within the organisation. These activities affected all divisions and staffs within both the Parent Company and our subsidiaries. Within the Rail division, marketing and sales worked in parallel with production to utilise our resources more efficiently. Combined with previously adopted measures, the Group's costs were reduced by more than SEK 300 million, which is the most important factor behind the positive result reported in the second half of the year. Despite the economic downturn, there has been considerable interest in our offering, which led to the signing of more new agreements during the year than ever before. In order to improve our ability to meet the needs of the market, we continued to develop our products during 2009, for example our intermodal and international transports.

• Our operations in 2009
  • Events during the year
• Our stakeholders
• Green Cargo's management
• Risks and risk management
• Outlook and profit appropriation