Friday, May 28, 2010

DB Schenker Continue Bulgarian Rail Freight Consolidation

Traction License Means Expansion of Services
Shipping News Feature

BULGARIA - DB Schenker Rail Bulgaria EOOD, founded at the start of this year, celebrated its grand opening yesterday in Pirdop, Bulgaria. DB Schenker Rail Bulgaria EOOD is headquartered there and has multiple shunting sites throughout Bulgaria. By expanding its network, DB Schenker Rail now has its own national company in the growing Southeast Europe region. Founded in 2002 as a subsidiary of Logistic Services Danubius SRL, it currently has around 150 employees and its own electric and diesel shunting and main-line locomotives.

Schenker have also received a traction license for the Bulgarian rail network, the license is an important milestone for establishing Schenkers as an independent railroad company in the Bulgarian transportation market. Hans-Georg Werner, Member of the Management Board of DB Schenker Rail responsible for Region East said:

"Now that we have a traction license, we can continue to expand our range of continuous transports in Southeast Europe and offer our customers transportation solutions geared toward their needs. Integrating DB Schenker Bulgaria EOOD into the DB Schenker Rail network will allow the different national companies to benefit from synergies, for example in asset management.

"We have already been able to use locomotives from Denmark and Germany to upgrade the vehicle pool, which gives us the opportunity to expand the locomotive and car pools in Bulgaria."

The traction license enables DB Schenker Rail Bulgaria EOOD to operate rail transports in Bulgaria independently in addition to the industrial shunting services it has offered to date. The first transports are scheduled to begin in June for Europe's largest copper producer, Aurubis. In the future, DB Schenker Rail Bulgaria EOOD will also be able to offer customers extensive traction services.

The license is one of only five granted to private rail companies, the four remaining licences going to state owned concerns. The license was awarded to the company at a special ceremony by Kamen Kichev, Bulgaria’s Deputy Minister of Transport, together with a contract for access to the railway infrastructure, safety and insurance certification.