Tuesday, April 30, 2013

Tie Up Between European Rail Cargo Specialist and Freight Forwarder Means More Intermodal Options

Deal Awaits Sanction from Anti Trust Authorities
Shipping News Feature

EUROPE – German based wagon hire and rail logistics company VTG Aktiengesellschaft and Swiss headquartered freight forwarder, Kuehne + Nagel, are planning a merger of parts of their rail logistics activities. Both parties signed the related letter of intent with a majority participation on the part of VTG anticipated and the merger represents an expansion of the long-term partnership that has existed between VTG and Kuehne + Nagel within the scope of their joint company Transpetrol for more than 20 years.

The new joint venture would expand the present rail logistics activities of the partners, continuing the growth strategy of VTG Rail Logistics and enabling Kuehne + Nagel to offer its customers an extended, and presumably intermodal, product range. The principal goal is to strengthen the market position of both companies within the field of European rail logistics.

In addition, the partners say the transaction allows an expansion of the logistics solutions offered in the Industrial, Agricultural and Petrochemical Goods product segments, all of prime importance to the rail haulage sector. From a geographical point of view, the joint coverage area ranges all over Europe into Russia and Turkey.

The final contracts that will be worked out after signing the letter of intent are, as is usual, subject to the approval of the relevant corporate bodies and antitrust authorities and in this a final decision is expected sometime in the second half of 2013.