Equity capital in CargoNet to be increased

At a meeting held on 15 December, the Group Executive Board of NSB decided to increase the equity capital of its subsidiary CargoNet. This is crucial for CargoNet to continue operating as Norway’s largest carrier of goods by rail

Last year was plagued by an unusually high number of stoppages due to floods, landslides and fire. Moreover, the upgrading of the lines has caused many trains to be cancelled. Overall, this has resulted in major financial losses.

The Group Chief Executive of NSB and Chairman of the Board of Directors of CargoNet, Geir Isaksen, stresses that it is important to facilitate the efficient and customer-friendly carriage of goods by rail. He also states:

  • This requires CargoNet to deliver cost-effective and punctual solutions on properly maintained tracks.
  • Jernbaneverket (the Norwegian Infrastructure Management) must continue the important work of improving the infrastructure
  • We have also asked the politicians for better framework conditions for the carriage of goods by rail until the tracks have been fully rehabilitated
  • And finally: A greater commitment to CargoNet is in line with Norway’s political goals to move more goods from the roads to rail

The CEO of CargoNet AS, Are Kjensli, is happy that NSB’s Group Executive Board will invest more in CargoNet, and emphasises that Norwegian transport companies are leading within the use of rail transport. Maintaining this requires quality, as well as the enhancement of the efficiency of both the infrastructure and ourselves as a company. The injection of capital will enable us to further develop CargoNet and the carriage of goods by rail.

For further information contact:

Director Information and strategy in CargoNet, Bjarne I. Wist, mobile: 0047 913 12 123

Published: 12/15/2011