RAIL4CHEM (Acquired by Veolia Cargo 2008 & Acquired by SNCF & Groupe Eurotunnel 2009))

Note: This company is no longer trading as a separate enterprise.

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2009

September - The SNCF and Eurotunnel groups had teamed up to acquire Veolia Cargo, the rail freight businesses of the Veolia group. Veolia Cargo, Europe's leading private rail freight operator, had a particularly strong presence in Germany, Benelux and France. Consisting of 20 subsidiaries, it employed nearly 1,200 people and reported revenue of €188m in 2008.

The SNCF group had taken over the rail companies based in Germany, the Netherlands and Italy, while the Eurotunnel group acquires the French branch of Veolia Cargo (Socorail, Veolia Cargo France, Veolia Cargo Link and CFTA Cargo).

The transaction strengthened SNCF's rail network in Europe, especially in the Netherlands and Germany, where Veolia Cargo was the leading private operator, notably through its subsidiary Rail4Chem.

The Deputy CEO of SNCF and head of the SNCF Geodis division, said: "This acquisition is part of our drive to develop rail freight, notably by intensifying international links for full train loads in Europe. For example, we will be able to directly operate trains between Rotterdam and France to meet the growing needs of our customers in this area."

The activities acquired in France by Europorte 2, Eurotunnel's specialist rail freight subsidiary, covered a broad and integrated range of services, including domestic and international rail freight traffic, local freight services on secondary lines, and services for industry.

These services were complementary to and non competitive with Eurotunnel's existing services. The new activities would support growth in the group's rail freight business. In 2008, with a workforce of roughly 600, they generated revenues of around €50m. The Chairman and CEO of Eurotunnel, commented: "I am very pleased that our offer, presented in partnership with the SNCF group, was selected by Veolia. It marks a decisive step in the development of Europorte 2 and the sustainable growth of Groupe Eurotunnel. From a strategic point of view, the rail freight sector holds great potential for the future, particularly in light of environmental considerations."

The transaction was expected to be completed by the end of the year, following approval from the competition authorities.

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2008

In February seven years after setting up the business, the shareholders of privately-owned German rail cargo service provider Rail4Chem - BASF SE, Hoyer GmbH Internationale Fachspedition, Bertschi AG and VTG Aktiengesellschaft - decided to sell the company to Veolia Cargo (Paris).

The parties agreed not to disclose the acquisition price. The transaction requires the approval of the relevant antitrust authorities and was expected to be finalised during the first half of 2008.

BASF, Bertschi, Hoyer and VTG set up Rail4Chem in 2000 to intensify competition in the rail cargo sector. Since its inception, stated BASF, Essen-based Rail4Chem had advanced to become one of the major private providers in the business in parallel with increasing liberalisation of European rail markets and had sales of over €80m last year.

"When the transaction is complete, Rail4Chem and Veolia Cargo's existing rail cargo business will be combined to become Europe's leading privately-owned provider of rail cargo services, on track for continued profitable growth in a strong alliance," said BASF.

"The existing transport routes, businesses and licenses of the two companies are a perfect match, making Veolia Cargo the preferred partner of Rail4Chem's former owners. BASF, Hoyer, Bertschi and VTG will remain customers of Rail4Chem."

With its subsidiaries Rail4Chem benelux B.V. (Rotterdam), Rail4Chem transalpin AG (Basel) and fer Polska S.A. (Warsaw), Rail4Chem Group has permits in Germany, the Netherlands, Belgium, France and Switzerland. Together with partners, it also provides transport services to Poland, Czech Republic, Austria, Hungary, Italy and Slovakia. Rail4Chem employs approximately 180 people.

Veolia Cargo was an independent private European freight transportation company, a subsidiary of Veolia Transport, specialised in rail-based logistics. In 2007, Veolia Cargo employed 1,000 people and generated revenue of €122m. It is primarily involved in medium and long-distance rail freight transportation (national and cross-border services), management of private sidings at industrial sites and local rail networks, and train haulage-related services and logistics services at industrial sites. 

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It is an international rail freight company providing cross-border rail services throughout Europe as well as developing rail transport with its customers.  It carries out the rail transport services together with its partners of "European Bulls RailFreight Alliance".