With innovation in focus, VÄTE Rail connects the Nordic region with the world via APM Terminals

With railway lines extending from the southernmost to the northernmost parts of Sweden via APM Terminals in Gothenburg, VÄTE Rail shows that innovation and courage can create new opportunities in a traditional industry. We have spoken to Björn Sandberg, CEO of VÄTE Rail, about the company’s journey and future visions.

VÄTE Rail has quickly gained ground as an important player in the railway industry. How did the journey start?

VÄTE Rail was founded in 2009 and started its operations in 2010 with the aim of offering climate-friendly, cost-effective and high-quality switching and depot services to industry and railway companies. Over the years, we grew and expanded our business. In 2020, we took a major step forward and obtained a licence to operate freight traffic as part of a tailor-made overall solution for an assignment we had together with Green Cargo.

In 2024, you started a unique rail shuttle between Haparanda and APM Terminals in Gothenburg. Can you tell us about that?
We were already operating as train hauliers when First Row Shipping went bankrupt. Then our owners made the courageous decision to take over running the shuttle. There was great need for a sustainable link between northern Sweden and the Nordic region’s largest port, so we signed an agreement with Nouryon, one of our two largest customers, which transports the majority of its cargo to Sundsvall.

In collaboration with Nurminen Logistics, we extended the shuttle to include Umeå and Haparanda. 

Innovation seems to be central to your business. Tell us about it!

The railway industry is often characterised by old structures, and this is where we make a difference. We strive to find solutions that no one has thought of before. From the outset, we chose to invest in smaller and more cost-effective locomotives, strategically adapted to meet our customers’ specific needs. This enabled lower operating costs, which in turn helped to offer competitive prices to our customers. It was unusual at the time, but it has proven to be a success factor for us. 

Another example is that we started experimenting early on with the use of cameras on carriages to streamline switching while improving the working environment and safety for our employees. Our own product development encountered challenges, and we were unable to allocate the time required to develop it fully. Meanwhile, we identified another company that successfully developed a similar product, and today we have a partnership agreement with them. We are convinced that digital aids can offer great opportunities for railways – it’s just a matter of getting them into the regulations.

Rail is the most climate-efficient way to transport goods. How do you work to further reduce the climate footprint for your customers?

Since the end of 2024, we have been running exclusively on HVO fuel, which has reduced our carbon dioxide emissions by more than 80%. We are also the first in Sweden to invest in hydrogen locomotives. We have an agreement with the manufacturer to buy up to 20 locomotives powered by fuel cells – a technology that we believe will become standard within the next 5-10 years. We have already tested the technology in Poland with good results and look forward to seeing how it works in Swedish conditions. Our goal is to implement hydrogen-powered locomotives in our production by 2030.

How do you view your collaboration with APM Terminals?

We use the port that our customers prefer, and APM Terminals is the natural choice. We are very pleased with the cooperation. APM Terminals is an efficient terminal that delivers high quality. 

What is your vision for the future?
Our vision is to continue to expand in both our business areas, switching and train haulage. We will be at the forefront of driving the green transition. VÄTE Rail has already taken significant steps towards becoming Sweden’s greenest freight train company. 

We also see great value in train operators developing collaborations to optimise capacity, reduce costs and reduce risks and climate impact. It is through such collaborations that we can meet the challenges of the future and at the same time compete with the largest players in the market.