The Norwegian Railway Directorate and SJ Norge has signed the contract for Tender 2 North

Better customer offering and substantially lower cost to the government

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SJ Norge's chairman Berit Kjøll (right) and Director General in the Norwegian Rail Directorate Kirsti Slotsvik believe in a customer lift for rail travel in the north. Thomas Silbersky warns that SJ will invest long-term in Norway. Photo: Øystein Grue.

Today the Norwegian Railway Directorate and SJ Norge signed the contract for rail passenger services on Dovrebanen, Rørosbanen, Raumabanen, Nordlandsbanen, Trønderbanen og Meråkerbanen. SJ Norge and Vy Tog was part of the last round of negotiations, and both final bids were of high quality.

Both SJ Norge and Vy Tog scored highly on quality and delivery approach. The bid from Vy Tog was marginally better on these criteria. SJ Norge submitted a materially better bid in terms of costs to the government. In total, SJ Norge submitted the bid which gave the best balance between quality and costs to the government.

The average compensation that SJ Norge requires to run the services in the tender, is about a fifth of the current costs to the government for the traffic. Vy Tog’s bid also had a substantially lower cost to the government than today, however, it was materially more costly than the bid from SJ Norge. In effect the costs to the government over the up to 10.5 year contract period was decisive.

SJ Norge is a Norwegian subsidiary of Sweden’s largest rail passenger operator, SJ AB. SJ is owned 100 % by the Swedish government. The group is already operating in Norway, and runs the services between Stockholm and Narvik and between Stockholm and Oslo.
In total, there were three bidders in the competition.

- We are happy that the competition was strong also for this tender, even though there were fewer bidders than in Tender 1 South. In signing a contract with SJ, we get an operator that is already running services in Norway and knows Nordic conditions. We are certain that will deliver a safe and high quality offering to the customers, and the cost to the government is lowered substantially, Kirsti Slotsvik, Director General in the Norwegian Railway Directorate, says.