The agreement establishes Railcare as a national provider for snow clearance at specific sites across Sweden. Credit: Railcare AB.

Railcare, a railway maintenance services provider, has received a contract from the Swedish Transport Administration (STA) for snow clearance services, valued at approximately SEK59m ($5.39m) annually.

This four-year contract, with an extension option of one-plus-one years, has a total estimated value of SEK355m ($32.4m), including the potential extension.

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The agreement positions Railcare as a national provider for snow clearance at designated locations across Sweden.

Railcare CEO Mattias Remahl said: “We are delighted to have been awarded this important contract, not only because it contributes to Railcare’s financial stability, but also because of the critical assignments we carry out – making railways more accessible, including in challenging weather conditions.”

From mid-November to the end of March, the company will deploy six machines, such as snow melters and snow ploughs, along with machine operators and train drivers to ensure snow removal.

Railcare has been contracted by the STA to handle snow clearance for several years.

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The service period under the latest contract now extends by an additional half month, concluding at the end of March, compared to previous years.

Furthermore, Railcare will now utilise HVO100 fuel in all machinery, and the locomotives assigned are required to be equipped with Stage V engines and the European Train Control System (ETCS).

Railcare operations manager Daniel Bolin said: “We are delighted that the Swedish Transport Administration continues to see significant value in the snow clearance services we deliver.

“Our collaboration has worked very well throughout the years, generating security for both parties.”

In July 2024, Railcare acquired 40% of the shares in locomotive rental company AC Finance.

This “strategic” investment is intended to provide access to locomotives with better “environmental performance”.

In 2020, Railcare introduced a battery-powered multi-purpose vehicle (MPV) for railway maintenance at its Skelleftehamn, Sweden headquarters.

The MPV is designed to reduce noise and eliminate emissions during operations.