The Year of a New Strategic Direction
Throughout 2023, we have developed a new strategic direction for Mantena. Our ambition is to be the Nordic region's leading center of expertise for rolling stock.
The railway reform of 2017 set a clear direction for the Norwegian railway. The authorities wanted competition on the tracks and commercial players with a focus on customers and costs. For Mantena, this meant transformation, new opportunities, and some challenges.
In recent years, Mantena has adapted to the new reality by developing the organization, reducing costs, and delivering competitive products and services. In 2023, the time was ripe to look ahead and set a new direction for Mantena.
Increased profitability
A prerequisite for the strategy is profitability. This is also something our owners expect when, in the Revised National Budget for 2024, they make new equity available, which will enable the measures outlined in Mantena's strategy.
Mantena has experienced economic challenges related to certain contracts. After attempts to find solutions through negotiations and discussions throughout 2023 did not succeed, Mantena took profitability measures at the beginning of 2024.
The contract with Alstom for onboard installation in the ERTMS project was terminated due to non-payment for work performed.
In connection with the agreed evaluation process with GoAhead, we exercised our contractual right to terminate the contract with GoAhead for the maintenance of trains in Traffic Package 1 South. The maintenance needs are far greater than what the tender basis and history indicated, and the framework conditions in Traffic Package 1 therefore make it unsustainable to continue the contract.
Technology, Operations, and Sustainability Focus
Mantena's strategic direction involves a strong focus on technology, operations, and sustainability in the coming years. We will adopt new and existing technologies to streamline maintenance and become even more data- and analysis-driven. We will further develop our operational concepts and standardize and automate work processes. We aim to reduce our own climate and environmental footprint while developing services related to circular solutions, material consumption, and lifespan extension.
We will also actively work to identify and ensure the quality of alternative suppliers. This is an important tool to keep material and part costs down during a time of significant price increases and a weak currency. To succeed in this, we depend on good cooperation with railway stakeholders in Norway and Sweden, both commercial and non-commercial actors.
Sweden and Norway is our primary market
Mantena won the first contract in Sweden in 2007 and has since been one of several maintenance providers in the Swedish market. In the coming years, a number of maintenance contracts will be tendered, with a mix of newer and older equipment from various train manufacturers. We believe that our value proposition, as an independent total supplier and Nordic center of expertise, resonates well. Through the tender processes over the next 2–3 years, we will test our competitiveness.
The Norwegian market will remain stable in the coming years. We expect the maintenance contract for the new local and regional trains, Coradia Nordic, to be put out to tender in 2024. We also anticipate that the maintenance of the Flåm Railway will be tendered in 2024. Thereafter, there will likely be less movement in the Norwegian passenger train market until the Southern Traffic Package is put out to tender again. The market for the maintenance of freight trains and working machines is expected to grow.
New, modern components workshop
Localized maintenance will be crucial for Nordic competitiveness. Reduced transport of components lowers costs and environmental impact, while local maintenance expertise and capacity ensure national preparedness. Additionally, local organizations ensure proximity to decision-making and rapid adaptability. At Mantena, we aim to develop a modern component workshop with efficient production processes, automated maintenance operations, and sustainable solutions. A new, modern component workshop in the Nordic region will increase overall capacity and eliminate the need to send heavy components out of the Nordic region for overhauls.
Mantena Technology
In 2023, we established Mantena Technology, which consists of 40 engineers and technical specialists. Through Mantena Technology, we will provide technical advisory services and develop new solutions related to the maintenance and management of rolling stock. Mantena has been working for many years to implement new and existing technologies internally and as part of fleet service contracts. Now, we will work together with customers and the market to create the maintenance solutions of the future.
