The High North – Infrastructure and Industrial Development

Good morning, ladies and gentlemen! Thank you for inviting me here today!
 
• On November 18, the Norwegian Government presented the white paper for the High North policy.

• During the next 20-30 years, the Government aims at ambitious goals for Norway’s efforts in the High North.

• The main focus of the white paper is on foreign policy. But emphasis is also put on how the High North policy is to promote employment and value creation across the country as a whole.

• The Government has outlined seven development trends that will shape the initiatives and priorities of Norwegian High North policy in the time to come:
-        A new energy province in Europe.
-        A new industrial age in the north.
-        Pioneering work on integrated marine management.
-        The growing attraction of the Arctic Ocean.
-        Source of knowledge about the environment and climate       change.
-        Close and innovative cooperation in the High North.
-        New geopolitical centre of gravity in the High North.
 
The High North policy and the transport policy:
• Functional transport infrastructure is necessary for the High North. Fishery, oil and gas, other industries and tourism – they all depend on a good transport system.

• The government`s ambition is to create sustainable growth and development in The High North.

• The National Transport Plan for the years 2010–2019 enclose many projects of great strategic importance for the development in the High North. These projects are also part of the annual budgets.

• In our Norwegian High North policy we have underlined that the transport infrastructure in the region is in need of upgrading.

• The roads to Russia, Finland and Sweden are important, and will be on our priority list in the years ahead. 

• The most important cross-border corridor is Ofotbanen between Narvik, Kiruna and the Gulf of Bothnia.  Later on I will look closer into this matter.

• In The National Transport Plan 2010-2019 the Government announced a revision of the transport infrastructure in the North.

• The transport administrations and Avinor have made a report on the needs for transport infrastructure in the High North.

• The first part of the report was finished in November last year. It was called ”New infrastructure in the High North".

• Part two was ready in June this year. It looks into the trends in key industries, and the transportation needs of these industries up to 2040.

• This study will be important for us in our work with the National Transportation Plan 2014-2023.

• Among other things, the report contains a chapter on mining. This is an important industry - especially in coastal areas.

• The largest producer of iron ore and industrial minerals in Norway is Nordland. Finnmark is also a large producer. South-Varanger is fully operational - with plans for further growth.

• The Barents region is geologically very rich, supplying Norway and the world with various resources.

• Scarcity of metals in the world usually means high metal prices. As a result we expect further growth in the area

• A significant part of the EU ores and minerals are already exported from the Barents Region.

• Large quantities of deposited waste rock (gneiss) are a future resource. The same is quartzite in Tana, crushed stone in Repparfjord, nepheline syenite at Stjernøy and sand, gravel and stone in Alta.

• Good transport is essential for the mining industry. Large volumes and heavy transports require solutions with high capacity.

• Most of the transport in the Norwegian mining industry is done by sea.

• China will be the most important growth market for iron ore over the next 30 years. Export to China goes by ship - and they must be large. It raises the need for ports that can handle large vessels.

• Botnvika has limited availability due to ice and depth conditions, which makes it difficult for the largest ships to enter.

• The conditions for maritime transport are very favourable along the Atlantic coast, compared to Botnvika.

• This means that the ice-free harbours (Narvik) on the Norwegian side have an advantage.

• LKAB has invested a lot of money in new unloading facilities in Narvik harbour.

• With increased volumes, larger port capacity in Narvik will be necessary.
 
Ofotbanen
• For industry located far away from the sea with large regular transport volumes, railway transport often is the best solution.

• The Ofoten line (Ofotbanen) has existed for over 100 years. Iron ore still stands for approximately 98% of the total tonnage on the line.

• Analysis done by the Norwegian National Railway Authority  - Jernbaneverket - suggests that Ofotbanen has the capacity to handle today's traffic. But both the length of and the distance between passing-loops will be a limitation for further growth in transport volume.

• Jernbaneverket and the Swedish National Transport Authority – Trafikverket – is now doing a capacity study of the Ofoten line on the Norwegian side and the Iron ore line (Malmbanan) on the Swedish side of the Border. The study is made with different traffic simulations. This will give us more information about the future capacity needs.

• Ofotbanen has in recent years been upgraded to handle heavier and longer trains (30 ton axle-load and trains up to 750 m length).

• An extended passing-loop (Straumsnes) was opened in August last year. Prolonging of Bjørnfjell passing-loop is given priority in NTP 2010-2019, but not before the last six-year period (2014-2019).

• Jernbaneverket is now working on specific measures to meet the companies' needs in a relatively short term. Up to 3 passing-loops on the Norwegian side needs to be extended.

• The Ministry has therefore asked Jernbaneverket to discuss possible solutions directly with LKAB and Northland Resources AB. We want them to look into how the iron ore companies can contribute to reach an earlier realization of the most urgent capacity-increasing measures on the Ofoten line.

• The issue of Ofotbanen and it`s capacity needs in the medium and long run will be addressed in the next NTP 2014-2023. The Report to the Parliament will be forwarded early 2013.
 
NDPTL
• The Northern Dimension Partnership for Transport and Logistics (NDPTL) is a new Partnership, aiming to contribute to enhanced transport connections in the northern Europe.

• The partnership is a good way to build cooperation and strengthen relations. At a national level we have never worked so closely together before.

• NDPTL will be an important arena to establish better transport connections and to stimulate sustainable economic growth - across national borders. Specific results count most.

• The Barents cooperation will continue to be an important venue for information and the dissemination of knowledge in the north. Norway will be leading the cooperation for the next two years.

• I would also like to highlight the excellent cooperation that has developed over many years between transportation administrations on either side of the border in the High North. This cooperation must be further developed for the benefit of all!

• Thank you for your attention!