External, municipal and state actors

The company is dependent on decisions made by external actors. There is a risk that the direction of the company and the success of its business and investments going forward will be affected by decisions made by external actors, such as municipalities, the Swedish Transport Administration and regional councils, regarding issues like business and building permits, and zoning laws. There is a risk that such decisions could change market conditions, and the conditions for entering into new business deals and investments, which may have a negative impact on the company’s strategy and results.

Land improvement

In Train Alliance’s work to identify suitable geographic locations, the company may receive information from third parties regarding zoning processes and future land usage, which forms the basis of our investment and project decisions. Such information may turn out to be incorrect or may be altered by decisions made by authorities. Going forward, this may cause Train Alliance to pursue projects in unfavourable geographical locations, which may have a negative effect on the balance sheet and the overall value of the company.

Senior executives and competence

Train Alliance’s senior executives possess extensive in-depth competence and experience in the company’s field of business. The future growth of the company is deemed to be to a large extent dependent on the knowledge, experience and commitment of the management and board of directors. There is a risk that Train Alliance will not be able to retain these senior executives or that the company will not be able to recruit qualified new personnel going forward. A lack of competence or resources may have a negative impact on the company’s competitiveness, the organisation as a whole, and its ability to achieve its strategic goals.

Project-based operations

Through its operations, Train Alliance conducts a number of major projects on an ongoing basis, in both the zoning and construction/establishment stages. In each project, there are a number of operational risks that may involve an increase in costs or delays, which may have a negative impact on the company’s income statement.


The Swedish rail transport market has undergone gradual deregulation, going from a closed monopoly to an open market. As of 1 October 2010 it has been fully deregulated. There are still a number of actors in the rail transport market that are owned by the state and have strong financial support. Train Alliance’s competitors, both national and regional, may have greater resources and capacity than the company to better withstand downturns the market and to be able to compete more effectively. In addition, competitors may have a higher tolerance for lower yield requirements. Train Alliance may therefore be forced to make costly investments, carry out restructuring or price reductions to adapt to a new competitive situation. In the event that Train Alliance does not succeed in implementing such measures, there is a risk that the competitive situation may have a negative impact on the company due to loss of market share or increased price pressure and reduced profitability.