NORWAY’S Togreiser Nord, previously known as Arctic Train, has entered administration after its losses grew by almost a third last year when compared with 2021.
“We have been working on a number of improvement measures and streamlining our two main products, which include train experiences with the daytime train and the Northern Lights train, while reducing the number of scheduled departures,” says Togreiser Nord chairman, Mr Pål Amundsen.
“We have made an attempt to save the company, but unfortunately, the financial realities over many years and too much ballast in our balance sheet have made us unable to continue operating the company.”
Togreiser Nord has been struggling with deficits largely due to restrictions imposed during the Covid-19 pandemic, and lost upwards of NKr 15.6m ($US 1.46m) on turnover of NKr 3.3m.
Its equity was at a negative NKr 23.9m, while interest and other financial costs skyrocketed to NKr 909m and wage costs rose by two thirds. Its sister company TM Togdrift, which operates the trains, also lost NKr 10m in 2022, while Arctic Train Holding, which owns both companies, lost NKr 13.7m.
Arctic Train was formed in 2019 and has mainly been operating tourist trains on the Ofoten line between Narvik and the Swedish border. It has never made a profit.
