Go-Ahead Norge supplies operator services to the state under a traffic agreement for Sørlandsbanen and Jærbanen (traffic package 1 south).
The corona pandemic, and the extensive measures taken by the Norwegian authorities to limit the spread, had major consequences for the public transport sector. As in many other social sectors, government support schemes were also established for the train companies.
The corona pandemic had long-term effects on the number of passengers and the Norwegian Railways therefore renegotiated the traffic agreements with all train companies in the summer of 2022. Like SJ Norge and Vy Tog, Go-Ahead Norge entered into a renegotiated traffic agreement (ARTA) for income compensation in the summer of 2022.
– The passenger failure has significantly changed the conditions for developing the train service as planned. The aim of the agreement was to ensure financial sustainability in the years ahead, says Emil Eike, CEO of Go-Ahead.
Go-Ahead Norge did not perceive that there was any disagreement about the understanding of the renegotiated agreement. Towards the end of November 2022 and further into the spring of 2023, however, it turned out that the Directorate of Railways had a different view of how the income compensation should be calculated, than what followed from the wording of the renegotiated agreement and how this was practiced after the agreement was concluded.
– Go-Ahead Norway and the Norwegian Railway Directorate spent considerable time discussing a solution beyond 2023, but have not been able to reach an agreement. Go-Ahead Norway has therefore been forced to file a lawsuit against the state at the Ministry of Transport to ensure the correct compensation payment in line with the wording of the agreement. There is no drama in this, and Go-Ahead Norway only follows the traffic agreement’s dispute resolution mechanisms here, says Eike.
Go-Ahead Norway’s goal with the further process is to be paid the compensation for lost income that the parties agreed on in the renegotiated agreement in the summer of 2022. Even with this compensation, it is estimated that Go-Ahead Norway will have a loss of approx. NOK 130 million in the contract period 2019 – 2027. If Go-Ahead Norway were to accept the Norwegian Railway Directorate’s understanding of the renegotiated agreement, it is estimated that the company will almost double its loss in the same period, to NOK 230 million.
– For Go-Ahead Norway, this case is not about securing a profit for the company, but about limiting an already significant loss. Go-Ahead Norway, as a small player in the Norwegian railway system, expects the authorities to comply with the agreements entered into. It is a strong desire on the part of the company that the matter finds a speedy solution, so that Go-Ahead Norway can use its resources to make the train service on Sørlandsbanen and Jærbanen the best possible in the coming years, says Eike.
