Oslo City Council has enhanced the climate goals for Oslo and has also pointed out that we are a key ally in this work. We promise to do our bit.
In just five years, greenhouse gas emissions must be halved and then our city will be fossil-free by 2030. The aim of the City Council is to reduce all car traffic in Oslo by 20 percent during the city council period and one third by 2030, compared to 2015. In order to achieve these goals, the percentage of passenger transport covered by public transport, cycling and walking must be increased significantly and the need for motorised transport must be reduced. For public transport, the challenge is to become more attrac-tive than the car but not for the journeys that would otherwise have taken place by foot or bike.
Using the business model developed by Oslo Vognselskap and our owners, we secure the necessary funds for acquisition and ad-ministration of the required number of carriages.
Oslo is faced with an extensive development of the public transport system. The development of the Fornebu Line and the extension of the Furuset Line to A-hus are crucial cross-border projects. The metro tunnel development may be Norway's most important transport project. We are also facing extensive upgrades to the trams. The common denominator between these projects is that they will require more trams and metro carriages.
Using the business model developed by Oslo Vognselskap and our owners, we secure the necessary funds for acquisition and ad-ministration of the required number of carriages. This financing solution enables Oslo to realise these major ambitions.
Oslo Vognselskap also sees a growing need for corporate governance and administration models that govern this cross-border challenge. When our customers are not stopping at the border, we cannot stop either.
The Oslo region is becoming an increasingly interwoven residential and labour market. The journeys we will facilitate in the future will be cross-border journeys, between local authorities and counties.
Ruter has spoken in favour of increased collaboration across the administration companies in the Oslo region. Oslo Vognselskap also sees a growing need for corporate governance and administration models that govern this cross-border challenge. When our customers are not stopping at the border, we cannot stop either.
This need is also observed elsewhere across the globe. The Swedish company Transitio owns and administers rolling stock on behalf of Swedish counties. It is a practical example of it being possible to find positive collaboration models that ensure that geographical boundaries do not pose an obstacle when it comes to developing good administration models with good expertise and seamless answers to customers' requests and requirements. If we have the same customers it might also be wise to have the same stock?
The capacity ceiling has already been reached for the tram. And we already use the entire transport capacity for metro carriages.
More carriages are required
Higher political ambitions for public transport in combination with the Oslo region growing at record speeds have created a need for more carriages.
Even if we disregard the major public transport development projects in the Oslo region, the population growth and shift from car to public transport will mean that we will soon experience a public transport system in which the capacity has been exceeded. The capacity ceiling has already been reached for the tram. And we already use the entire transport capacity for metro carriages. And this is before we even start moving towards the political goal of reducing car traffic by 20 percent in Oslo. We must make quick decisions to meet the demand for additional carriage capacity that will arise from our goals.
Metro carriages to appear as new in 2018!
The majority of a metro or tram journey takes place in a carriage owned by Oslo Vognselskap. Our stock must be adapted for cus-tomers' requirements in terms of standards and travel needs at all times. Vognselskapet has established a strategic goal for the met-ro carriages to appear as new in 2018.
In order to achieve this we need to know a lot about how customers experience the current service and listen to their feedback about what is important for their journeys to be successful. We also survey the actual standard of the stock and ensure that we implement plans for necessary measures at an early stage. Good maintenance equals good asset management, which in turn equals good environmental policy.
If there is one thing we are proud of at Oslo Vognselskap as we celebrate our anniversary, it is the fact that we turned this situation around and now have a solid surplus to contribute to the green shift in Oslo.
Environment at all levels
Producing trams and metro carriages results in carbon emissions. In order to say something about how environmentally friendly public transport is, we need to view the entire life cycle of the stock, not only the fact that the metro does not emit CO2.
Energy and resource consumption throughout the service life, in terms of operations (energy) and costs linked to maintenance are of major importance in terms of the overall resource and environmental impact of the stock. Good acquisition is therefore about keeping the life cycle costs and environmental costs at a low level.
It is therefore an essential environmental investment to ensure that the carriages have a long service life. Scrapping stock too early is considered misuse of the environment and resources. It also costs money.
The recent history of the public transport sector in Oslo shows how badly it can go if you do not have provisions in place for invoic-es. Backlogs, old and worn stock and high maintenance costs resulted in dissatisfied customers who chose other modes of transport ahead of the metro. If there is one thing we are proud of at Oslo Vognselskap as we celebrate our anniversary, it is the fact that we turned this situation around and now have a solid surplus to contribute to the green shift in Oslo.
We have put ten successful years behind us and look forward to a green and groundbreaking future.
Erik Lund (born 17/10/1968) has been the CEO of Oslo Vognselskap AS since 2010 and has been working for
the company since it was formed in 2006, including as the CFO. Prior to this, Erik worked as an adviser in Oslo Sporveier. He is a qualified business economist (HAE).