Society
As a member of society, we are exposed to risks occurring in our surroundings. Risks due to macroeconomic trends, altered conditions within the rail and logistics sectors or altered consumption patterns are three examples of external events we must monitor and manage. Examples from the current market include:
INSUFFICIENT INFRASTRUCTURE
Investments in infrastructure are an absolute necessity if Green Cargo is to be able to contribute to positive growth in society and to offer competitive logistics solutions. There is an obvious risk that an inadequate, outdated infrastructure could inhibit this development. Green Cargo gathers information on a regular basis and participates in debates on this topic. For example, we maintain a continuous dialogue with the Swedish National Rail Administration and utilise other possible channels for reaching decision-makers.
CHANGING TRANSPORT PATTERNS
Changes in the focus on the financial market are affecting transport patterns at the same time as the increasing need for long-haul transports is causing a shift within modes of transport. If companies and industrial production continue to move abroad, the Swedish and Nordic industries could be at such a disadvantage from a cost perspective that transport volumes fall.
Green Cargo continuously develops its offers to secure value-creation for its customers' operations.
MACROECONOMIC CHANGES
The financial crisis and the slowing economy are also a significant uncertainty factor for Green Cargo. We are witnessing lower demand in several of our markets, the automotive industry being one of the first to feel the effects of the downturn. Sweden's GDP fell in 2009 by 4.9 percent, which also affected Green Cargo.
A stronger focus on cost efficiency will help us withstand the falling business cycle more successfully. Price variations and future access to oil and electricity will also have an effect on our costs. We purchase electricity from the Swedish National Rail Administration to operate our trains, and the Administration has a long-term strategy for electricity procurement in order to provide rail operators with stable electricity costs over time. We also have fuel clauses in our customer agreements in order to control our cost levels. However, higher fuel prices in general encourage a shift to more environmentally efficient transport alternatives, such as rail.
Key figures for follow-up: energy consumption.
PORTS
Green Cargo's intermodal offer with free-standing load carriers partly includes travelling from and to Swedish ports. There is a risk that decisions on forthcoming infrastructure investments will be made for ports that do not have a rail connection. Another risk is that the existing Swedish ports are not equipped to efficiently receive the super container ships of the future. In practice, calls from these ships require rail solutions in order for the port to be able to manage the large container volumes. Green Cargo has developed its own port strategy and has close partnerships with several ports to offset these risks.
Green Cargo's intermodal offer with free-standing load carriers partly includes travelling from and to Swedish ports. There is a risk that decisions on forthcoming infrastructure investments will be made for ports that do not have a rail connection. Another risk is that the existing Swedish ports are not equipped to efficiently receive the super container ships of the future. In practice, calls from these ships require rail solutions in order for the port to be able to manage the large container volumes. Green Cargo has developed its own port strategy and has close partnerships with several ports to offset these risks.
Green Cargo's national transports are an approved Good Environmental Choice