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Green Cargo and ScandFibre Logistics form new logistics solution

Press release   •   Mar 19, 2021 09:32 UTC

ScandFibre Logistics (SFL) and Green Cargo renew their partnership in the form of a comprehensive Scandinavian rail freight logistics solution. Green Cargo won SFL’s procurement due to its competitive offering in the form of a sustainable freight solution with flexible volumes and the possibility of adding more direct trains together with faster lead times.

SFL has an integrated rail freight system which from December 2021 will be known as Rail22. Within Rail22, SFL coordinates rail freight from Swedish paper mills to some 40 terminals in Sweden and Europe. The companies with collaboration agreements with SFL include BillerudKorsnäs’s paper mills in Karlsborg, Gävle, Frövi, Gruvön and Skärblacka; Mondi Dynäs in Väja; and Smurfit Kappa in Piteå.

A new three-year agreement has been reached between Green Cargo and SFL. Green Cargo will transport all departing volumes by rail from the paper mills in Sweden. In addition to the agreement encompassing climate-smart transportation, the logistics arrangement aims to ensure a cost-efficient transportation solution with delivery precision. The new agreement entails a partial increase in agreed freight volumes for Green Cargo, which are now estimated at 2 million tonnes per year from the mills. Green Cargo also distributes 700,000 tonnes for SFL in return freight from the south of Sweden to various terminals in Scandinavia that arise within Rail22’s operations from different parts of Europe.

Transporting freight via rail is not only climate-smart – it is also the more space-efficient transportation alternative. The new solution with Green Cargo means that SFL reduces its carbon emissions by more than 86,000 tonnes compared with using road freight. Sending these goods volumes by truck would have resulted in around 120,000 truck loads per year on Sweden’s roads. Not only is the partnership between Green Cargo and SFL significant for the environment, it also leads to safer roads.

“Our goal is to create efficient, climate-smart freight solutions for our customers. It’s very gratifying that SFL have renewed their commitment with us, increasing our scope and, together, contributing to a more sustainable society. The expanded commitment enables us to offer even more flexible shipments with fewer stops, faster lead times, more direct trains and less shunting. The return freight solution is possible due to Green Cargo having Scandinavia’s largest rail freight network,” says Mats Brodd, Key Account Manager Strategic Sales.

ScandFibre Logistics is a transportation and logistics company specialized in rail freight for the Scandinavian forest industries. ScandFibre Logistics is contracted to provide efficient and environmentally friendly deliveries from paper mills in Scandinavia to export markets across Europe. ScandFibre is also responsible for considerable quantities of import shipments by rail to Sweden. The company has 25 employees and sales of around SEK 1,100 million. The head office is located in Örebro.

Green Cargo is a sustainable logistics partner and crucial for Scandinavia’s trade and industry. Electric trains make up over 95 percent of our ton kilometrage, meaning the climate impact is next to zero. Every 24 hours, some 400 freight trains depart, replacing around 8,500 truckloads on the road network. We serve close to 300 locations in Sweden, Norway and Denmark through our network, and with our partners we reach all of Europe. Green Cargo is owned by the Swedish State. We transport 21 million tonnes of freight, have 1,800 employees and annual sales of about SEK 4 billion (2020).