Ted Lundström is the chair of the Swedish Business Transport Council (NTR) and head of global logistics at Ovako. He has extensive experience in the industry, where he sees both challenges and opportunities for the transportation system of the future, and emphasizes the importance of Sweden adapting to an increasingly uncertain world by building a flexible and sustainable transportation system..
In a world where globalization creates both opportunities and challenges for the transportation and logistics sector, the issue of sustainable and resilient transportation is becoming increasingly important. With increased urbanization, digitalization, and stricter climate goals, both businesses and policymakers face major challenges in ensuring that Sweden’s transportation system is efficient, environmentally friendly, and robust enough to handle the stresses of the future.
– At its core, this is about the Swedish welfare system. If I have 100 euros per metric ton in my transportation budget to reach a global market, that determines how many suppliers and customers I can reach. If regulations and costs mean I can only travel 80 mil instead of 100, then we lose both suppliers and customers. That’s why we must ensure that the transportation system is as efficient and competitive as possible. To succeed, we need to view the transportation system as a whole, not as individual modes of transport or types of traffic, Ted continues.
– We look at transportation systems as a whole and want to get the most and the best out of each mode of transportation, rather than pitting them against one another. The companies that NTR represents in transportation matters have more than 200,000 employees and a combined revenue of over 2,000 billion. For all of these companies, it is crucial that transportation operates efficiently and is sustainable.
”The Voice of the Estate in the Debate”
The Swedish Business Transport Council consists of some 40 companies that purchase transportation services and industry organizations that work to promote Swedish industry and trade through improved transportation conditions. The NTR serves as a voice in political discussions at both the national and European levels and works actively to ensure competitive transportation solutions for the Swedish business community.
“We safeguard the common interests of Swedish industrial and commercial companies and aim to be the voice of the freight industry in the debate and ensure that Swedish companies have the best possible transportation conditions. Ultimately, this is about Sweden’s competitiveness and the ability to maintain a strong industrial and export market,” says Ted.
NTR is a member of the European Shippers Council, an organization that serves as the EU-level counterpart to the Swedish Business Transport Council. Ted considers membership in this organization to be crucial, since many important decisions are made at the EU level.
– To maintain a robust transportation system, we need to look beyond Sweden’s borders. All exporters depend on importers, and vice versa; without a functioning export system, there are no conditions for successful imports. It is a vast ecosystem in which cooperation with the rest of Europe is crucial for a functioning Swedish transportation system.
An ever-changing industry
With nearly 20 years of experience in the industry at companies such as Ovako, Schenker, and Setra, Ted Lundström has witnessed how the transportation sector has evolved in step with rapidly increasing digitalization, sustainability requirements, and geopolitical changes. His interest in logistics, including transportation, stems from a fascination with systems and information flows, and how these can be optimized to create efficiency and resilience.
– Logistics isn’t just about moving goods from point A to point B—it’s a complex system that encompasses technology, organization, regulations, and geopolitical factors. Digitalization has created fantastic opportunities for efficiency gains, but at the same time, we see how crises and changes in security policy can hit supply chains hard. To address this, companies and decision-makers must think long-term, invest in redundancy, and ensure that we have robust transportation solutions that function even in times of uncertainty. It is precisely this balance between efficiency and resilience that makes the industry so dynamic and exciting, says Ted.
”What works in war must work in peace”
Efficient transportation is not only a matter for the business community but also for Sweden’s total defense. A strong civil society with a functioning transportation system is crucial in times of crisis and war. In this regard, NTR plays a vital role in helping to maintain a well-functioning society through robust and sustainable transportation.
“What works in wartime must also work in peacetime. We ensure that systems are robust and sustainable for every conceivable scenario, whether it involves pandemics, climate-related crises, or security threats,” says Ted.
Challenges in the Transportation Sector
Sweden’s transportation system has several shortcomings that need to be addressed to improve its resilience and sustainability. Ted points to three problem areas, of which the railways’ neglected maintenance and complex regulatory framework are the most obvious. The Swedish Maritime Administration is also grappling with financial challenges that could affect icebreaker operations, which in turn could have serious consequences for maritime shipping. The third problem area Ted highlights is road transport, which needs higher-capacity solutions—such as longer and heavier vehicles—to transport more freight per trip, and where the driver shortage risks becoming an increasing challenge.
The transportation systems of the future must be robust and sustainable
In addition, Ted emphasizes the importance of adapting the Swedish transportation system to handle future crises and unforeseen events. The disruptions of recent years—from pandemics and conflicts to trade wars—have shown how vulnerable global supply chains can be and how important it is to have both national and European strategies in place to ensure the flow of transportation.
– The transportation system must be equipped to handle future crises. The pandemic, the war in Ukraine, and the current trade war have shown how quickly conditions can change. If we don’t have robust and flexible solutions in place, we risk ending up in a situation where companies can’t get raw materials or deliver their products. It’s not just about competitiveness, but about Sweden’s economic and strategic security, Ted explains.
”A Broader Perspective on Transportation Issues”
Creating a more resilient and sustainable transportation system requires investments in redundant systems and a broader perspective on transportation issues. It’s not just about infrastructure, but also about staff training, technological innovations, and political collaboration, Ted emphasizes.
– Sweden has long transport distances, which means we must be world-class in efficient logistics. At NTR, we work to ensure that Swedish companies can transport their goods safely, sustainably, and cost-effectively—today and in the future. Through a combination of strategic investments, innovation, and collaboration between the business sector and society, Sweden can build a transportation sector that is not only internationally competitive but also contributes to a more sustainable and resilient future.
Ted highlights the importance of sustainability and explains that NTR places a strong emphasis on sustainability and monitors all issues related to sustainability within transportation systems. NTR wants to help ensure that these efforts are effectively implemented so that the business community can achieve its ambitious sustainability goals.
– Sustainability issues take up a lot of our attention, and this is a major shift. It’s a huge challenge—much bigger than we realize. We’re monitoring the impact of the EU Emissions Trading System (EU ETS) on the transportation system and evaluating policy instruments, and in doing so, it’s hard not to address the energy issue, even though it’s not really our area of expertise. Emissions reduction mandates, electrification, and issues of that nature are things we also need to monitor and keep track of in order to succeed.
Electrification and Hydrogen
Ted spends most of his time as global head of logistics at Ovako, one of the companies that is a member of NTR. Ovako is a leading player in the steel industry that has made significant progress in reducing its carbon footprint. Over the past ten years, the company has reduced its CO2 emissions by 56 percent through measures such as electrification, and it is now also investing in hydrogen-based solutions. By focusing on sustainable production and energy efficiency, they have created a more sustainable business model that can inspire others in the industry.
“All the tin cans you recycle will most likely end up with us and be turned into world-leading steel. That’s something we’re proud of,” says Ted. Ovako also operates the Nordic region’s largest hydrogen plant, which is expected to play a key role in the transition to fossil-free transportation. Hydrogen is seen as a key component in the transportation sector of the future, particularly for heavy-duty vehicles and shipping, where electrification poses greater challenges.
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Text and interview by Marika Karlöf
