Veolia Cargo (Acquired by SNCF & Groupe Eurotunnel 2009)

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.

Veolia Cargo is 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. 

Veolia Transport operates on behalf of public authorities' rail lines in Germany, Sweden, Australia and the United States and in France it operates regional rail lines between Nice and Digne and between Carhaix and Paimpol.  For some industrial customers Veolia Cargo operates freight activities in Germany and France, with subsidiaries such as Socorail and CFTA Cargo, and more recently in the Netherlands. 

It has significant resources with almost 200 locomotives, 1,600 wagons, as well as an internal training centre and integrated workshops.