DB Schenker Rail acquires majority stake in Italian NordCargo
Takeover of a further 11 percent in NordCargo creates second-largest rail freight operator in Italy
Milan/Mainz, DB Schenker Rail has increased its stake in the Italian rail freight operator NordCargo s.r.l. by a further 11 percent. The DB Schenker subsidiary had already acquired a 49 percent stake in NordCargo back in January 2009. It now owns 60 percent of the shares and consequently the majority stake in the company, which is domiciled in Milan.
Italy is one of the most important foreign markets for DB Schenker Rail, with transports to and from Italy accounting for roughly one quarter of the company’s total international revenues in 2008. DB Schenker Rail has already successfully collaborated with NordCargo in the Italian market for many years.
NordCargo, with registered office in Milan, was hived off from the parent company Ferrovie Nord Milano (FNM) at the end of 2003. In 2008, its workforce of approx. 200 generated revenues of roughly EUR 40 million from international and domestic transports. The company is licensed to operate on the Italian rail network, runs 7000 trains / 1.4 million train kilometers per annum, and is responsible for providing traction on international routes along the Adriatic and Tyrrhenian coasts between Milan and Naples. NordCargo has been active in the freight transport market since September 2001.
The present business of DB Schenker Rail Italia, with registered office in Alessandria, will be transferred to NordCargo and the activities of both companies merged under the umbrella of NordCargo. This integration of the business activities of DB Schenker Rail Italia and NordCargo will lead to a new business enterprise with approx. 300 employees. “The amalgamation of these two companies will enable us to improve our product portfolio in Italy and along the north-southbound corridors, thus laying the basis for attracting more transport onto rail in both the international and the Italian domestic markets,” explained Dr. Alexander Hedderich, Chairman of DB Schenker Rail.
Norberto Achille, Chairman of FNM, added: "In 2001, we were the first company to successfully tackle the challenge of entering the liberalized rail freight market. Together with the leading European rail freight company, we now play an even more important role in that market. In terms of transport volumes and revenues, we are the second-largest Italian rail freight operator.
The present DB Schenker Rail Italia was purchased by DB Schenker Rail Deutschland in 2004. It was the successor of “Strade Ferrate del Mediterraneo” (SFM) which had been founded in 2001. In financial year 2008, the company - whose activities are concentrated in the north-west of Italy - had a workforce of approx. 100 and generated revenues of approx. EUR 17 million.
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