February 15, 2017

SJ plans investment in new trains as profits soar

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SWEDISH national train operator SJ is planning to accelerate investment in the modernisation of its train fleet as rising demand continues to strengthen the company’s revenues and profits.

According to SJ’s annual results for 2016, which were published on February 15, net sales grew 3.1% year-on-year to SKr 9.34bn ($US 1.04bn) while operating profits soared to SKr 837m, compared with SKr 212m in 2015. Net profit climbed 38% to SKr 650m.

SJ’s customer satisfaction index score rose from 66 to 70, while punctuality improved slightly on both long-distance services (up 1% to 83%) and regional trains (up 1% to 90%). Passenger numbers increased by 2% year-on-year with 5% growth in the fourth quarter.

Over the next five years SJ is planning to invest SKr 9bn in the modernisation and renewal of its train fleet. SJ says it has made a strategic decision to prepare for the procurement of 30 new long-distance trains, in addition to the modernisation of the X2000 fleet, which is already underway, and a major refurbishment of rolling stock used on overnight services.

“With a strong performance behind us and our financial strength, we can increase the rate of investment to offer our passengers more modern and comfortable trains, while putting ourselves in a better position to meet future demand,” says SJ CEO Mr Crister Fritzson.

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