Ofotbanen
Encyclopedia
The Ofoten Line is a 43 kilometres (26.7 mi) railway line
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...

 in Narvik
Narvik
is the third largest city and municipality in Nordland county, Norway by population. Narvik is located on the shores of the Narvik Fjord . The municipality is part of the Ofoten traditional region of North Norway, inside the arctic circle...

, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

. It runs from the Port of Narvik to Riksgränsen
Riksgränsen
Riksgränsen, The National Border in Swedish, is a ski-resort in Kiruna Municipality, Lappland, Sweden, 200 km north of the Arctic Circle. The skiing season is from February to June...

 on the Norway–Sweden border
Norway–Sweden border
The Norway–Sweden border is a long land national border, and the longest border for both Norway and Sweden.-Geography:Most of the border follows the drainage divide in the Scandinavian Mountains. In Norway, the border lies along the counties, from south to north, of Østfold, Akershus, Hedmark,...

, where the line continues as the Ore Line
Malmbanan
The Iron Ore Line is a long railway line between Riksgränsen and Boden in Norrbotten County, Sweden. The line contains two branches, from Kiruna to Svappavaara and from Gällivare to Koskullskulle. The term is often colloquially used to also include the Ofoten Line, from Riksgränsen to Narvik in...

 via Kiruna
Kiruna
Kiruna is the northernmost city in Sweden, situated in Lapland province, with 18,154 inhabitants in 2005. It is the seat of Kiruna Municipality Kiruna (Northern Sami: Giron, Finnish: Kiiruna) is the northernmost city in Sweden, situated in Lapland province, with 18,154 inhabitants in 2005. It is...

 and Gällivare
Gällivare
Gällivare is a locality and the seat of Gällivare Municipality in Norrbotten County, Sweden with 8,480 inhabitants in 2005. The town was founded in the 17th century...

 to Luleå
Luleå
- Transportation :Local buses are run by .A passenger train service is available from Luleå Centralstation on Sweden's national SJ railway service northbound to Narvik on the Norwegian coast, or southbound to Stockholm. See Rail transport in Sweden....

. The Ofoten Line is single track
Single track (rail)
A single track railway is where trains in both directions share the same track. Single track is normally used on lesser used rail lines, often branch lines, where the traffic density is not high enough to justify the cost of building double tracks....

, electrified at and has seven stations. The line only connects to the rest of the Norwegian railway network
Rail transport in Norway
The Norwegian railway system comprises 4,087 km of track of which 2,622 km is electrified and 242 km double track. There are 696 tunnels and 2760 bridges....

 via Sweden. The main traffic is up to twelve daily freight trains operated by Malmtrafik
Malmtrafik
Malmtrafik i Kiruna AB or MTAB is a Swedish railway company which operates the iron ore freight trains on the Ore Line and the Ofoten Line. MTAB is a wholly owned subsidiary of the mining company Luossavaara–Kiirunavaara . In Norway, operations are handled by the subsidiary Malmtrafikk AS...

 that haul iron ore from Sweden to Narvik. In addition, CargoNet
CargoNet
CargoNet AS is the primary operator of freight trains on the Norwegian railway system. It was formed as NSB Gods after NSB fissioned into a passenger and a freight company. NSB Gods changed its name to CargoNet at the beginning of 2002. It is owned by NSB and the Swedish freight company Green Cargo...

 operates container trains, branded as the Arctic Rail Express (ARE), and SJ
SJ AB
SJ is a government-owned passenger train operator in Sweden. SJ was created in 2000, out of the public transport division of Statens Järnvägar, when the former government agency was divided into six separate government-owned limited companies.-Overview:SJ's operations fall broadly into subsidised...

 operates passenger trains, including a night train
Night Train
Night Train or Nightrain may refer to:*Night train, a train that runs at night, see sleeping car.-Music:*Night Train , an Australian rock bandAlbums*Night Train , an album by the Oscar Peterson Trio...

 to Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

. The Ofoten Line is also part of the Northern East West Freight Corridor
Northern East West Freight Corridor
The Northern East West Freight Corridor, usually referred to as the N.E.W. Corridor, is a project organized by the International Union of Railways UIC and Transportutvikling AS to connect the east coast of the United States to East Asia by train and ship....

, which hauls containers from China and India to North America.

Construction of the Ofoten Line started in 1898 along with the Ore Line from Riksgränsen to Kiruna. They were completed in 1902, allowing LKAB
LKAB
LKAB is a Swedish mining company. The company mines iron ore at Kiruna and at Malmberget in northern Sweden. The company was established in 1890, and has been 100% state-owned since the 1950s...

 to haul ore from their mines in Kiruna to the ice-free Port of Narvik. Operation and ownership of the line was held by the Norwegian State Railways. The line was electrified in 1915 and NSB started using El 3
NSB El 3
NSB El 3 was an electric locomotive used by Norges Statsbaner to transport iron ore on Ofotbanen. Five twin-locomotive sets were in service from 1925 to 1967.-History:...

 and El 4
NSB El 4
NSB El 4 was an electric locomotive used by Norges Statsbaner to transport iron ore on Ofotbanen. NSB had a total of five triple-locomotive sets.-History:...

 locomotives. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, the ore traffic stopped because of the Battles of Narvik
Battles of Narvik
The Battles of Narvik were fought from 9 April-8 June 1940 as a naval battle in the Ofotfjord and as a land battle in the mountains surrounding the north Norwegian city of Narvik as part of the Norwegian Campaign of the Second World War....

 and the bombing of the town. In the following decades, NSB introduced El 12
NSB El 12
NSB El 12 was an electric locomotive used by Norges Statsbaner to haul iron ore trains on Ofotbanen between 1957 and 1990. The locomotives were based on the Swedish Dm that was used with success on the connecting Malmbanan. The eight units were always operated in pairs or in triples and were...

 and El 15
NSB El 15
NSB El 15 is a class of electric locomotives which are now operated by the Swedish company Hector Rail as Class 161 locomotives. The locomotives were originally built for the Norwegian State Railways in 1967 to replace the NSB El 3 and NSB El 4 engines on Ofotbanen...

 locomotives. In 1996, operation of the ore trains was taken over by Malmtrafik, which was controlled by and now is a subsidiary of the mining company LKAB. The same year, ownership of the railway line was transferred to the newly created Norwegian National Rail Administration. The line has been upgraded to 30 tonnes (29.5 LT) axle loads, allowing the new Iore
IORE
Iore, often stylized IORE, is a class of 26 electric locomotives built by Adtranz and its successor Bombardier Transportation for the Swedish mining company LKAB's railway division Malmtrafik. The class is a variation of Adtranz's Octeon modular product platform, thus related to Bombardier's later...

 locomotives to haul 8600 tonnes (8,464.2 LT) trains.

Operations

Malmtrafik operates iron ore trains from the mines in Kiruna, Svappavaara and Malmberget to the Port of Narvik, where LKAB operates a ore port with a capacity of 25 million tonnes per year. Daily there operate 11 to 13 trains in each direction. The trains hauled by Iore are have 68 cars, are 750 metres (2,460.6 ft) long and weigh 8600 tonnes (8,464.2 LT). The full ore trains operate at 60 kilometres per hour (37.3 mph), while the empty return trains operate at 70 kilometres per hour (43.5 mph). In 2006, the company hauled 15 million tonnes of ore, constituting the majority of train cargo in Norway, measured in tonnes, although not in tonne-kilometers.

CargoNet
CargoNet
CargoNet AS is the primary operator of freight trains on the Norwegian railway system. It was formed as NSB Gods after NSB fissioned into a passenger and a freight company. NSB Gods changed its name to CargoNet at the beginning of 2002. It is owned by NSB and the Swedish freight company Green Cargo...

 operates two daily container trains from Alnabru Terminal in Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...

, Norway, named the Arctic Rail Express (ARE). The trains operate via Sweden and take 27 hours. The trains haul mostly food northbound and fish southbound along a distance of 1950 kilometres (1,211.7 mi). DB Schenker
DB Schenker
DB Schenker is a logistics company, a wholly owned subsidiary of Deutsche Bahn AG. The company, created by reorganisation and rebranding of various Deutsche Bahn subsidiaries, comprises a logistics division encompassing air, land and sea freight, and a rail division made up from a variety of...

 launched a competing freight service, between Oslo and Narvik, in January 2010. There is about 0.5 million tonnes of non-ore freight transport on the Ofoten Line each year.

SJ operates three daily trains from Narvik to Kiruna Central Station
Kiruna Central Station
Kiruna Central Station is a railway station located on the Iron Ore Line in Kiruna, Sweden. The station is served by up to three daily services northwards on the Iron Ore Line to Narvik Station in Norway. Southwards, the station is served by two daily services to Luleå Central Station and...

, of which two continue onwards, either to Luleå Central Station
Luleå Central Station
Luleå Central Station or Luleå C is a railway station located on the Main Line Through Upper Norrland in Luleå, Sweden. The station is owned by Jernhusen and is the terminal of the line....

 or Stockholm Central Station
Stockholm Central Station
Stockholm Central Station is the largest railway station in Sweden. The station is situated in the district of Norrmalm at Vasagatan/Central Plan. Opened July 18, 1871, the station is the largest in Sweden, with over 200,000 visitors daily...

. Trains to Stockholm are night train
Night Train
Night Train or Nightrain may refer to:*Night train, a train that runs at night, see sleeping car.-Music:*Night Train , an Australian rock bandAlbums*Night Train , an album by the Oscar Peterson Trio...

s. Travel time from Narvik to Kiruna is 3 hours and 1 minute, travel time to Luleå is 7 hours and 4 minutes, and travel time to Stockholm is 18 hours and 25 minutes.

History

In 1884, LKAB's predecessor Gellivare Aktiebolag is granted concession for mining in Malmberget. Four years later, the first part of the Ore Line, from Malmberget to Luleå, was completed. In 1889, the mining company filed for bankruptcy, and the Government of Sweden bought the line for 8 million Swedish krona
Swedish krona
The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...

 (SEK), half the investment cost. Construction of the Ore Line and Ofoten Line from Gällevare to Narvik started in 1898 and was completed in 1902. A bridge, Norddalsbron, was built along the Ofoten Line, extra long for military reasons, to be able to cut the line in case of war. In 1940, during the war
Battles of Narvik
The Battles of Narvik were fought from 9 April-8 June 1940 as a naval battle in the Ofotfjord and as a land battle in the mountains surrounding the north Norwegian city of Narvik as part of the Norwegian Campaign of the Second World War....

, the bridge was blown up. However, because of lack of explosives, the blowing was not well done, and the bridge could be repaired by the Germans.

On 19 January 1915, the Ore Line between Riksgränsen and Kiruna was electrified
Railway electrification system
A railway electrification system supplies electrical energy to railway locomotives and multiple units as well as trams so that they can operate without having an on-board prime mover. There are several different electrification systems in use throughout the world...

. A plan for electrification of the Ofoten Line had been made in 1911, but not until 1920 did parliament approve the plans. Operations with electrical traction started on 15 May 1923, and was officially opened on 10 July. Until 1925, Swedish Oe locomotives were used. NSB decided to order two types of electric locomotive for the line: El 3
NSB El 3
NSB El 3 was an electric locomotive used by Norges Statsbaner to transport iron ore on Ofotbanen. Five twin-locomotive sets were in service from 1925 to 1967.-History:...

 and El 4
NSB El 4
NSB El 4 was an electric locomotive used by Norges Statsbaner to transport iron ore on Ofotbanen. NSB had a total of five triple-locomotive sets.-History:...

. El 3 was nearly identical to Oe and was a twin unit locomotive with a combined power output of 2132 kW. Four twin units were delivered in 1925, and a fifth in 1929. The El 4 locomotives were longer and more powerful, and operated as singles. Each single El 4 had the same power output as a twin El 3. Two units were delivered in 1926, two in 1928 and one in 1929. NSB operated the trains using their rolling stock from Narvik to Abisko
Abisko
Abisko is a village in northern Sweden, near the Abisko National Park located 4 km west of the village. It had 85 inhabitants as of 2005.-Transportation:...

, where there was a change of locomotive and operating company.

In 1940, the Port of Narvik was bombed
Battles of Narvik
The Battles of Narvik were fought from 9 April-8 June 1940 as a naval battle in the Ofotfjord and as a land battle in the mountains surrounding the north Norwegian city of Narvik as part of the Norwegian Campaign of the Second World War....

, and all export for the remainder of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 went via Luleå. In 1957, the Government of Sweden bought LKAB. Two of the El 4s were damaged beyond repair during the war.

In 1949, pooling of the locomotives started, whereby NSB and SJ would alternate operating trains and their respective locomotives used on the whole section from Kiruna to Narvik. The following year, LKAB decided to increase annual transport from 8–10, to 12–15 million tonnes. This involved increasing the train weight to 3100 tonnes (3,051 LT). To provide sufficient hauling power, the El 3 units were rebuilt from twins to triplets, and two of the El 4 units were made a twin unit. The upgrades were completed by 1953.

At the same time, SJ decided to order a new type of locomotive, the Dm. NSB followed suit, and took order of six locomotives, each with a power output of 2398 kW. They were designated El 12 and were delivered in 1954, with another two delivered three years later. The locomotives were at first used as four twin units, but later six were rebuilt to make two triplets.
During the 1960s, LKAB again decided to increase the need for transport, and NSB ordered six El 15
NSB El 15
NSB El 15 is a class of electric locomotives which are now operated by the Swedish company Hector Rail as Class 161 locomotives. The locomotives were originally built for the Norwegian State Railways in 1967 to replace the NSB El 3 and NSB El 4 engines on Ofotbanen...

, with a power output of 5406 kW. Although never permanently coupled together, the units normally operated in pairs when hauling ore trains. The El 4 was used until 1964, and El 3 until 1967. Neither the El 3, El 4 or Oe has been preserved.

In the 1980s, LKBA started to push for lower transport costs. At the time, NSB had a 50% profit margin
Profit margin
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.Net profit Margin = x100...

 on the operations, or about NOK&nsbp;60 to 70 million per year. A committee was established by both countries' transport ministries to find areas of improvement. During the 1970s and 1980s, the number of employees working on the ore logistics had been halved, and NSB stated that they did not believe there was much more room for higher efficiency. El 12 were retired in 1989 and 1990, and one twin unit has been preserved by Ofoten Museum.

In December 1991, LKAB stated that they wanted to take over the operation of the ore trains from NSB and SJ. At the time, they were paying 0.15 Swedish krone (SEK) per tonne kilometer in Sweden and 0.30 Norwegian krone
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...

 (NOK) per tonne kilometer in Norway, while comparable rates abroad were between SEK 0.03 and 0.10 per tonne kilometer. While SJ had several times during the 1980s agreed to reduce their rates, NSB had not offered the same, and was making a profit of NOK 60 to 70 million per year. LKAB stated that they, by taking over operations themselves, could save SEK&nsbp;200 million per year. In addition, they stated that they could save between SEK 50 to 100 million in auxiliary fields. LKAB had sent an application to Swedish authorities for permission to take over operations, and had received positive feedback from SJ. NSB, on the other hand, did not support a solution where they did not operate the trains themselves. LKAB stated that if an agreement with NSB could not be reached, they would shift all their transport to the Port of Luleå.

In February 1992, a report ordered by Kiruna Municipality
Kiruna Municipality
Kiruna Municipality is a municipality in Norrbotten County in northernmost Sweden. Its seat is located in Kiruna...

 recommended that LKAB, SJ and NSB create a common company to operate the ore trains. At the same time, SJ stated that the consequence of LKAB taking over operation could be that passenger trains on the lines would be terminated. In April 1992, LKAB was awarded traffic rights by the Swedish Rail Administration. The rights also did not effect the Ofoten Line.

The following day, SJ and NSB stated that they were considering establishing a joint venture that would take over the operations of the ore trains. In May, LKAB stated that Norway would, through its membership in the European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...

, be required to allow any train operator to run trains on a line, while this was rejected by NSB who stated that this only applied within the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

, of which Norway was not a member. In late May, NSB stated that they were able to cut costs by 25% and that they would reduce the price to LKAB more than this. LKAB rejected the proposal, and stated that NSB had shown their ability of restructuring too late. By August, SJ and NSB had offered to reduce the price from SEK 650 million to 450 million, but LKAB stated that they believed it was possible to reduce the costs further.
In September, Norwegian Minister of Transport and Communications
Minister of Transport and Communications (Norway)
The Minister of Transport and Communications is a Councillor of State and Chief of the Norwegian Ministry of Transport and Communications. Since 20 October 2009, the position has been held by Magnhild Meltveit Kleppa of the Centre Party...

 Kjell Opseth
Kjell Opseth
Kjell Olav Opseth is a Norwegian politician for the Labour Party. He was Minister of Transport and Communications 1990-1996 and Minister of Local Government Affairs 1996-1997.-References:...

 from the Labour Party
Norwegian Labour Party
The Labour Party is a social-democratic political party in Norway. It is the senior partner in the current Norwegian government as part of the Red-Green Coalition, and its leader, Jens Stoltenberg, is the current Prime Minister of Norway....

, stated that it would be "unfortunate" if LKAB should take over the operations. On 18 September, 3,000 people in Narvik held a general strike
General strike
A general strike is a strike action by a critical mass of the labour force in a city, region, or country. While a general strike can be for political goals, economic goals, or both, it tends to gain its momentum from the ideological or class sympathies of the participants...

 against LKAB's plans. At the time it was not possible for NSB to fire redundant employees, at that the state agency would have to continue to pay their Narvik employees who would not be hired by LKAB, should the latter take over operations.

In October the Swedish Ministry of Communications gave the final permission for LKAB to take over operations in their own right. On 26 October, SJ and NSB signed a new five-year contract with LKAB where the latter would purchase transport services from the two state railway. The annual price had then been reduced from SEK 650 to 400 million.The price reduction would mean that both NSB and SJ would have to lay off employees.

In 1993, SJ and NSB started operating the Arctic Rail Express (ARE) from Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...

 to Narvik via Sweden and the Ofoten Line. Originally the service had two weekly services. The main products were fruits and vegetables northbound and fish southbound. The service moved the northern-most container train service in Norway 250 kilometres (155.3 mi) north, from Fauske
Fauske
is a town and municipality located in Nordland county, Norway. It is part of the Salten region. The administrative centre of the municipality is the town of Fauske with approximately 6,000 inhabitants....

 on the Nordland Line. ARE met protests from politicians in Salten
Salten
Salten is a district in Nordland in North Norway, consisting of the municipalities Meløy, Gildeskål, Bodø, Beiarn, Saltdal, Fauske, Sørfold, Steigen and Hamarøy. The district borders Helgeland in the south , Ofoten in the north, Sweden in the east and Vestfjorden in the west...

, who feared less transport on the Nordland Line.

In 1993, the state railways were losing money on the ore trains. In January 1994, SJ and NSB stated that they were going to merge the operations of the Ore Line and the Ofoten Line. In May 1994, LKAB applied for traffic rights on the Ofoten Line. This was rejected in December by the Norwegian Ministry of Transport and Communications, who stated that the company did not meet the criteria in the law, including that the applicant had to have rail transport as their main activity.

In January 1995, it was proposed that a joint venture would be created between LKAB, SJ and NSB. The Norwegian Union of Railway Workers
Norwegian Union of Railway Workers
The Norwegian Union of Railway Workers is a trade union in Norway. It was formed on 20 November 1892, and mainly organizes workers in Norges Statsbaner—with the exception of locomotive drivers— and the Norwegian National Rail Administration, including related companies such as...

 protested the proposal, and the Norwegian Centre Party
Centre Party (Norway)
The Centre Party is a centrist and agrarian political party in Norway, founded in 1920. The Centre Party's policy is not based on any of the major ideologies of the 19th and 20th century, but has a focus on maintaining decentralised economic development and political decision-making.From its...

 stated that their feared this was the first step into converting NSB to a limited company
Aksjeselskap
Aksjeselskap is the Norwegian term for a stock-based company. It is usually abbreviated AS or A/S, especially when used in company names. An AS is always a limited company, i.e. the owners cannot be held liable for any debt beyond the stock capital...

. By February the negotiations were in a deadlock, and SJ and NSB stated that they were issuing an invitation to tender for a new class of locomotives. In March, LKAB again applied for permit to operate their own trains in Norway and stated that they would only join a joint venture if they were the majority owner. On 8 June, LKAB established a Swedish and a Norwegian subsidiary dedicated to rail transport. This would bypass the rationale provided by the Ministry of Transport in denying them traffic rights, and LKAB stated that there was no way the Norwegian authorities now could deny them such rights, given EU Directive 91/440
EU Directive 91/440
The EU Directive 91/440 is European Union legislation that sets out a framework and requirements for railways in the EU to allow open access operations on railway lines by companies other than those that own the rail infrastructure...

.
On 27 June, LKAB, SJ and NSB reached an agreement where the three would establish a joint venture owned 51% by LKAB and 24.5% each by NSB and SJ. At the time there were 350 employees in the three companies involved in the transport, and the new company would recruit its employees among these, although it would need significantly fewer employees. The plans called for the new companies taking over operations from 1 January 1996. The organization was protested by local labor unions in Narvik. In December, Kjell Opseth created a committee under the ministry, led by State Secretary
State Secretary (Norway)
In Norway, a State Secretary is a partisan political position within the executive branch of government. Contrary to the position Secretary of State in many other countries, the Norwegian State Secretary does not head his or her Ministry, rather, they are second in rank to a Minister...

 Torstein Rudihagen
Torstein Rudihagen
Torstein Rudihagen is a Norwegian politician for the Labour Party.In his early career, he worked as a teacher. He began his political career in the municipality council of Sør-Fron, to which he was elected in 1983. He later became mayor, a seat he filled from 1991 to 1997...

 of the Labour Party, which would look at the reorganization, thus postponing the date of the start of operations. In late January, the committee concluded that LKAB met the criteria to receive traffic rights. The report also showed that 55 jobs would be lost in Narvik and that the Norwegian Railway Inspectorate
Norwegian Railway Inspectorate
The Norwegian Railway Inspectorate is a Norwegian government agency responsible for control and supervision of rail transport in Norway, including railways, tramways, rapid transits, heritage railways and side tracks....

 had concerns regarding the safety of LKAB's operations.

In May, Opseth stated that the Norwegian Government would give the necessary rights to the joint venture. At the same time, the state would give Narvik Municipality economic support and lots for commercial development. With Malktrafik's take-over, 50 employees, equally distributed between the two countries, became redundant. On 28 June, the transfer of operations was finalized when the Labour Party, the Conservative Party and the Progress Party
Progress Party (Norway)
The Progress Party is a political party in Norway which identifies as conservative liberal and libertarian. The media has described it as conservative and right-wing populist...

 voted in the Parliament of Norway, with 67 against 45 votes, to grant Malmtrafik the necessary rights. The Centre Party, the Christian Democratic Party, the Socialist Left Party
Socialist Left Party (Norway)
The Socialist Left Party or SV, is a Norwegian left-wing political party. At one point one of the smallest parties in Parliament, it became the fourth-largest political party in Norway for the first time in the 2001 parliamentary election, and has been so ever since...

, the Liberal Party and the Red Electoral Alliance
Red Electoral Alliance
Red Electoral Alliance was an alliance of left-wing groups formed into a Norwegian political party to promote revolutionary far-left ideals into the Norwegian parliament...

 voted against. NSB's workshop and depot were to be transferred to a new company, Norsk Verkstedindustri, which was intended to create new jobs in Narvik.
Malmtrafik took over operations from 1 July. The company bought the Dm3-locomotives from SJ, NSB's six El 15 locomotives, and a number of workshops, depots and shunters. Post-nationalization, it became the first private railway company in Europe to haul international freight trains. From 26 September to 27 October, 200 employees in Narvik were on strike regarding the transition rules for employees. While the strike lasted, there was increased shipments to Luleå.

In 1998, LKAB estimated a gradual 35% increase in production until 2005, and demanded that the track owners grant sufficient funding to upgrade the lines from 25 tonnes (24.6 LT) to 30 tonnes (29.5 LT) maximum permitted axle load. Combined with new locomotives, this would give increased efficiency in hauling the ore. The upgrade for the Ofoten Line would cost NOK 180 million, and would allow LKAB to increase the train weight from 4100 to 8600 t (4,035.2 to 8,464.2 ). In addition, heavier trains would have to be longer, so sufficient passing loop
Passing loop
A passing loop is a place on a single line railway or tramway, often located at a station, where trains or trams in opposing directions can pass each other. Trains/trams in the same direction can also overtake, providing that the signalling arrangement allows it...

s would have to be upgraded to 790 metres (2,591.9 ft).
In March, LKAB awarded the contract to build 750 new 100-tonne hopper car
Hopper car
A hopper car is a type of railroad freight car used to transport loose bulk commodities such as coal, ore, grain, track ballast, and the like. The name originated from the coke manufacturing industry which is part of the steel industry ....

s to Transnet
Transnet
Transnet SOC Ltd is a large South African rail, port and pipeline company, headquartered in the Carlton Centre in Johannesburg. It was formed as a limited company on April 1, 1990. A majority of the company's stock is owned by the Department of Public Enterprises, or DPE, of the South African...

 of South Africa, after among others Norsk Verkstedindustri had been considered. In August, an agreement was reached whereby LKAB would pay for NOK 100 million of the NOK 130 million needed to upgrade the Ofoten Line. The contract to deliver 18 Iore locomotives was signed with Bombardier on 15 September 1998. LKAB bough SJ and NSB's share of MTAB in 1999, making MTAB a subsidiary.

The first twin unit locomotive was delivered in 2000, and serial delivery was made from 2002 to 2004. In March 2004, LKAB decided to not purchase the option for additional hopper cars from Transnet, and instead purchase 750 heavier cars from K-Industrier. Since 1969 the ore trains have been using the Soviet SA3 coupler
SA3 coupler
The SA3 coupler is a type of railway coupling used mainly, but not exclusively, in Russia and other states of the former Soviet Union.Railways in Russia used European buffers and couplings from their inception. These couplings had three main limitations. Firstly the load was limited. Secondly, the...

. However, LKAB decided that these were not sufficiently strong for the new trains and decided that the Iore locomotives and the new hopper cars were to be delivered with Janney coupler
Janney coupler
The Janney coupler, also known as a knuckle coupler, buckeye coupler, alliance coupler and AAR coupler is an automatic coupler patented by Eli H...

s (also known as AAR coupler). While the first pair of locomotives had a Janney couplers, the rest of the first batch were equipped with SA3 couplers to handle the existing hopper cars, and later retrofitted with Janney couplers. In 2003, the Ore Line from Kiruna to Riskgränsen and the Ofoten Line were finished upgraded to 30 tonne axle load, allowing half the trains to operate with maximum capacity.
Ofotbanen AS was founded on 20 March 2001. In November, it bought five used Di 3
NSB Di 3
NSB Di 3 is a class of 35 diesel-electric locomotives built by Nydqvist och Holm for the Norwegian State Railways . The class was built between 1954 and 1969, and delivered in two series, Di 3a and Di 3b. They are based on the Electro-Motive Division F7 and are equipped with EMD 567 engines...

 for NOK 250,000 each, well under market price, from NSB. In 2003, NSB announced that they wanted to discontinue their operations in Narvik, hoping they could leave operation of passenger trains on the Ofoten Line to Ofotbanen. In May, NSB signed an agreement with Ofotbanen, where the latter would take over NSB's responsibilities to operate trains from Narvik Station to Riksgränsen Station. The initial contract would last until 2006, and NSB paid NOK 13 million for the service. From 15 June, Ofotbanen took over all passenger transport on the line, including employing all former NSB employees in Narvik. On the same day, Connex Tåg
Veolia Transport
Veolia Transport is the international transport services division of the French-based multinational company Veolia Environnement...

 (later Veolia) took over the operations on the Swedish side of the boarder after winning a public service obligation
Public Service Obligation
In transport, public service obligation or PSO is an arrangement in which a governing body or other authority offers an auction for subsidies, permit the winning company a monopoly to operate a specified service of public transport for a specified period of time for the given subsidy...

 contract with the Swedish Government, and dismissing SJof the right to offer the service. In 2003, Narvik Municipality and the Port of Narvik both became minority shareholders in Ofotbanen. In April, Ofotbanen received a permit to operate in Sweden, and started offering charter trains between Narvik and Kiruna
Kiruna
Kiruna is the northernmost city in Sweden, situated in Lapland province, with 18,154 inhabitants in 2005. It is the seat of Kiruna Municipality Kiruna (Northern Sami: Giron, Finnish: Kiiruna) is the northernmost city in Sweden, situated in Lapland province, with 18,154 inhabitants in 2005. It is...

 in Sweden, primarily for cruise ship passengers.

The Northern East West Freight Corridor
Northern East West Freight Corridor
The Northern East West Freight Corridor, usually referred to as the N.E.W. Corridor, is a project organized by the International Union of Railways UIC and Transportutvikling AS to connect the east coast of the United States to East Asia by train and ship....

 is an initiative by the International Union of Railways
International Union of Railways
The UIC , or International Union of Railways, is an international rail transport industry body.- Brief history :The railways of Europe originated as separate concerns. There were many border changes after World War I and the Treaty of Versailles. Colonial railways were the responsibility of the...

 aiming to establish a freight corridor from the Far East to North America. The route would use the Ofoten Line and transship from rail to ship at Narvik. The main report for the project was made in 2004, but since there had been limited funding for the project. In 2005, Ofotbanen entered the container freight market, with a train running from Narvik via Sweden to Oslo, both via the Meråker Line and via the Kongsvinger Line. The trains would continue to Drammen when necessary.

In 2008, the public service obligation contract on the Ofoten Line was won by SJ. This included a subsidy of NOK 3.0 million from the Norwegian Ministry of Transport and Communications
Norwegian Ministry of Transport and Communications
The Royal Norwegian Ministry of Transportation and Communications is a Norwegian ministry established in 1946, and is responsible for transportation and communication infrastructure in Norway. It is led by Magnhild Meltveit Kleppa...

for the 40 km (24.9 mi) section on the Norwegian side of the border. Therefore, SJ started operating trains all the way to Narvik, and Ofotbanen lost the contract of operating the trains on the Norwegian side of the border. Ofotbanen had been receiving NOK 4.5 million in subsidies from NSB for the operation from 15 June. Ofotbanen ceased operations on 29 July 2008, and filed for bankruptcy on 24 October.

On 23 August 2007, LKAB ordered another four twin units, with delivery in 2010 and 2011, and costing €52 million. This will replace all remaining Dm3. After delivery, six locomotives are used from Kiruna to Luleå, and twenty are used from Kiruna to Narvik. By 2009, sufficient passing loops had been built along the whole line from Narvik to Luleå to allow all trains to operate with full capacity. By 2011, LKAB's will be able to replace all the Dm3, and convert all the coal trains to 68 cars. This will increase the capacity from 28 to 33 million tonnes per year, and at the same time reduce the number of departures per day from 21 to 15.

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