STOCKHOLM — Ikea, the home-furnishings retailer, won permission to run its own diesel-powered freight trains between Sweden and Germany, becoming the first private European company to operate a cross-border train, a wire service reports.
The two freight trains will use the Oeresund bridge, which connects Sweden and Denmark, to travel between Ikea’s central warehouse in Aelmhult, Sweden and Duisburg, Germany. They will replace 50 daily truckloads, Sweden’s railroad operator said on its Web site.
Ikea, which sells furniture at low cost in large warehouses outside city centres, is turning to trains to lower distribution costs. The company aims for 40% of its European shipments to be made by train.
The project has been delayed because of a lack of electricity- powered trains that function in both Sweden and Denmark. The railway authority has given Ikea permission to operate a diesel train instead, according to the statement.
Ikea will be allowed to operate the diesel trains for two years before switching to electricity-powered trains. It will start operating the trains this year.