Operating environment

We are developing environmentally friendly rail and city traffic in a continuously changing operating environment. Our company is affected by global megatrends, economic turns and crises. Political decisions and changes in regulations also have a central role in our operations and the requirements for sustainable traffic and logistics.

Consumer and corporate customers, stakeholders, owners and employees have increasingly higher expectations for companies’ responsibility. Here at VR Group, responsibility is at the heart of the business activities as the theme uniting our group’s business and growth areas. We take the financial, social and environmental impacts of our operations into account in our decision-making.

We believe that rail traffic will be a growing sector in the future and it has an essential role in our efforts to combat climate change and increase the well-being of society. The more Finnish people and industry use the train compared to other modes of transport, the more society will benefit. This is not only about smooth everyday traffic and supporting the competitiveness of industry but also about reducing emissions from traffic.

Megatrends control development

Climate change is one of the central megatrends of our time and combatting it requires rail traffic to grow. The electric train is an environmentally friendly option because it produces less emissions and consumes less energy than other modes of transport. We are also ready to do more and are committed to, for example, systematically improving energy efficiency.

Another megatrend affecting our operations is urbanisation, due to which passengers now travel between large cities and expect direct and fast connections. Digitalisation has brought with it new opportunities for customer service, enhancing operations, and business activities, such as seamless trip chains.

We believe that rail traffic will be a growing sector in the future and it has an essential role in our efforts to combat climate change and increase the well-being of society.

Many phenomena transcend borders

The general economic situation and exports opportunities, the current state of international politics and the development of prices on the world market affect the demand for products on the market and, through that, matters such as logistics volumes. In turn, the changes in the regulations for the traffic sector affect our company on many levels, through both Finnish and EU-level legislation.

In a global world, crises do not stay within state borders. Operations must continue, even in the middle of matters such as uncertainties related to epidemics or war. The successive crises of COVID-19 and Russia’s war of aggression have affected our company and society as a whole. Increased energy prices, inflation and interest rates can be felt in everyone’s daily life.

Growth in a competitive market

We operate in the open market in our business areas of rail and road logistics, train and bus passenger services and maintenance. In Finland, competition in rail traffic is becoming more intense. In the changing market environment, we focus on the continuous improvement of our operations and customer experience and seeking new growth.

We won the historic competitive tendering for the operation and maintenance of HSL commuter traffic in the capital region in spring 2020. In other areas, passenger transport was fully opened to competition from 1 January 2021, when VR’s exclusive rights to long-distance train traffic expired. In Finland, passenger transport has been opened to competition using the Open Access model, where operators can compete on the market on the same railway section with their own train fleet. This brings the most benefits to both customers and society.

In the changing market environment, we focus on the continuous improvement of our operations and customer experience and seeking new growth.

Investments in railway network are beneficial

In Finland, the railway network is under strain from a repair deficit and lack of capacity, which negatively affect rail transport by reducing punctuality and delivery reliability. The most significant share of delays is caused by disruptions in the rail infrastructure. We are, together with other rail industry operators, continuously improving the reliability of traffic. Long-term investments into the maintenance of the current railway network and new investments into the future make it possible for rail traffic to grow, and through that, the society’s carbon footprint to decrease.

At VR, we are creating a growing rail transport market that will increase the number of journeys and tonnes of goods on rails. This will make the movement of people and goods more sustainable, strengthen Finland’s security of supply and, at the same time, improve the accessibility of the regions.