Volvo Reaches Logistics Agreement to Reduce Environmental Impact

GÖTEBORG, SWEDEN -- June 30, 2014: The Volvo Group has reached an agreement with Scandinavian Logistics Partners AB (Scanlog) to sell surplus capacity in rail transport from Belgium to Sweden. The agreement will produce benefits in terms of costs and environmental impact.

“Rail transport as a logistics solution has been around for a long time in the Volvo Group, as one way of reducing our logistics costs and our environmental impact”

The Volvo Group’s freight train, the so-called “Train 8” leaves from Umeå via Älmhult in Sweden fully loaded with truck components to the Group’s truck plant in Ghent, Belgium with ten departures a week. But only 10% of the load capacity is used during the return trip to Sweden.

The Volvo Group is always trying to optimize transport based on reliability, cost and environmental impact. The means of transport is chosen that best meets the criteria. For this reason, the Volvo Group has been seeking opportunities to use surplus capacity that arises from Train 8’s return journey from Belgium to Sweden.

Scanlog’s requirement matches prevailing conditions and an agreement has now been signed with them. From July 1, 2014, The Volvo Group will sell the surplus capacity to Scanlog, which in turn sells cargo space to its customers.

“Rail transport as a logistics solution has been around for a long time in the Volvo Group, as one way of reducing our logistics costs and our environmental impact,” says Anders Bergström, head of short sea shipping and rail within the Volvo Group. “We have long been looking for opportunities to take advantage of the wagons that go from Gent to Sweden for return loads. In working with Scanlog we can do it while maintaining reliability of supply and delivery without risking that our own delivery chain will be disturbed.”

Train 8 in brief

Twice a day, five days a week, Volvo's train runs between Sweden and Belgium, on a route that looks like the figure 8. Wagons with parts from factories in Umeå, Gothenburg and Olofström meet in Älmhult and are linked together for transport to Ghent, Belgium. Train 8 is based on a tripartite agreement between the Volvo Group, Volvo Cars and Green Cargo.