From the beginning of 2008, Ofotbanen lost two important contracts. All the timber contracts with Norske Skog were transferred to CargoNet and Hector Rail. At the same time, the public service obligation contract on the Ofot Line was won by SJ. This included a subsidy of NOK 3.0 million from the Norwegian Ministry of Transport and Communications for the section on the Norwegian side of the border. Therefore, SJ started operating trains all the way to Narvik, and Ofotbanen lost the contract of operating the trains on the Norwegian side of the border. Ofotbanen had been receiving NOK 4.5 million in subsidies from NSB for the operation from 15 June.