The government needs to help Gothenburg to dredge the port for 4 billion SEK

By: Thomas Ström 2/24/17

All of Sweden is dependent on the Gothenburg Port and the city's automotive industry, which is booming thanks to the Chinese capital.
Therefore, the government should urgently make the decision to contribute with funds in order to increase the depth of the port from 14 to 17 meters.
Not until then will Gothenburg be able to compete and handle the deep draught ships that today are forced to choose other ports.

Gothenburg is on the right track to become one of northern Europe's major business cities. This is underlined not least by the West Swedish region around the city, which during recent years has become China's largest global development center for future vehicles. The Chinese are pouring money into research and development within the automotive industry.

China's role in Gothenburg is very interesting. 
I don’t think Volvo Cars has ever been doing as good as they are doing now. The holding company Geely seems to have infinite resources. To stay on the leading edge when speaking of electrification and autonomous vehicles, last year the company started one of their largest ever recruitment campaigns. In total, 400 engineers are going to be recruited!

Another Chinese company, which few people know about, is Cevt – China Euro Vehicle Technology.
The company has about 2,000 employees in Gothenburg. In 2016, there was a staggering development and research budget of 3.2 billion SEK.

Add to that Nevs (National Electric Vehicle Sweden), which is housed in the former Saab factory in Trollhättan. Although they have struggled in terms of earnings and have been forced to put in large sums of money, today there are 900 employees; a number that is constantly growing.
 
If you also add to the equation that Gothenburg already has the Nordic region's largest port, it is not difficult to understand the potential the whole country benefits from because of this.

In order to remain competitive, the port must be dredged and widened to accommodate larger and deeper draught vessels. Currently, the depth of the port is 14 meters. The new container ships require 17 meters. In the present situation, this means that the big ships have to unload in Hamburg before continuing to Gothenburg. In the long run, this is unsustainable.

The cost of dredging the port amounts up to about 4 billion SEK. This is something that the municipality of Gothenburg cannot cope with on its own.
As I pointed out, the Gothenburg port is of national interest.
Therefore, I believe that the government must get involved in the matter as quickly as possible.

Enough is enough! Shut down Postnord right now!

By: Thomas Ström 2/14/17

What is going on? 
Every time state-owned Postnord presents a financial report I get upset. 
Today, the company reported its earnings for 2016. It showed a loss of 1,4 MSEK. That is completely insane! 
If you add to that numerous reports of inadequate deliveries in the past year, you realize that this experiment is a total disaster.

Admit that Postnord – where the Swedish state owns 60 percent and the Danish state 40 percent – is a fiasco. Shut down the company now!

The report indicates that the main reason for the huge loss is the Danish operations. It is explained with the fact that Denmark has been focusing on becoming one of the most digitized countries in the world, which has meant that regular letters have declined by 90 percent since 2000.
In other words, one could say that there is no longer a market. A private company would have been forced to admit defeat and go out of business. However, the government owns the company and just throws even more tax money at it.

This week, Dagens Nyheter revealed that the Swedish government has a contingency plan for Postnord. They are afraid that Postnord will become a new Vattenfall. DN also reveals that when the company was formed in 2008, they received remarkable warnings from the then Swedish Business Development, Nutek. They were clear with the fact that this "would be a bad deal from a Swedish point of view"

Nutek also noted that the then Swedish Post’s net turnover would be more than 70 percent of the new company's turnover. Nonetheless, the Swedish state would only get 60 percent of the ownership and half of the voting rights.
In view of this, Nutek wrote: "The result could result in the Swedish government no longer controlling the Swedish Post’s business with owner directives, but only by legislation. This makes the state ownership in the company in general very questionable."

Despite this, the politicians went through with the deal.
And now the time has come for them to make things right.
I see no other alternative but to close down the company.

The Swedish letter distribution will have to be resolved in a different manner, which I will reconnect about later.

The shutdown of Säve Airport disrupts the region's development

By: Thomas Ström 2/8/17

Did Swedavia deceive the other owners?

 

I still cannot believe that it was decided to shut down Säve Airport.
In fact, it is absurd and a huge waste of money. 

Imagine if they had instead invested in renovating and expanding it.
Imagine how profitable it would have been for Gothenburg and the whole region – not to mention if the terminal and the parking would have been moved to the main road. 
Then we would have had a city airport, which would have been a great complement to Landvetter, especially when it is not possible to land there because of fog, for example.

It would also have been a very good resource for the business community in one of the most interesting regions, considering private jets and businessmen who prioritize speed and availability.
Keeping Säve would have been much cheaper than building a second runway at Landvetter, which I'm fairly sure is not going to happen in many, many years. Actually, I don’t believe it will happen at all.
Especially considering the fact that right now, people at the highest level, are discussing a second runway at Sturup. This seems completely absurd given the proximity to Kastrup.

All of these decisions are a big waste of money.

Lately, I have been learning more about the process surrounding the decision to close Säve.
Swedavia said that the cost to repair the existing runway would have been 250 MSEK. According to reliable sources, it would have cost 25 MSEK.

I am convinced that the closure of Säve is about Swedavia not wanting an airport in the region that can compete with Landvetter.
I believe that I can even go out on a limb and say that Swedavia officials have left their two former partners – the City of Gothenburg and Volvo – hoodwinked.

The background of the whole affair is that Säve made a loss and then Swedavia was forced to allocate more money into the project. This is when they rewrote the earlier shareholders’ agreement.
An addition to the new agreement would have the following effect:
If and when Swedavia wanted to sell, the municipality and Volvo had to sell their shares to Swedavia.

With this agreement, it was not difficult for Swedavia to get Säve disused, while investing as much as possible in Landvetter instead.
I think it's disturbing!

About Ströms blogg

 

Welcome to my blog. Here I will write about transport and logistics and much more ...

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