Release Date: 11 September 2006
Release ID: 869
CMA CGM, the third leading container shipping group in the world, and Veolia Environnement, the world leader in environmental services, have decided to cooperate, through their respective subsidiaries, Rail Link and Veolia Transport, in developing a new rail transportation service for sea containers.
The chief aim of this partnership is to improve the quality of rail service between major port terminals and the main economic regions in Europe.
This partnership is at the origin of 2 separate companies:
- A combined transportation operator (51%-controlled by Rail Link and 49% by Veolia Transport), which will be responsible for organizing and marketing the transportation of sea containers between port terminals and the end customers’ industrial sites.
- A rail company (51%-controlled by Veolia Transport and 49% by Rail Link), which will have all the necessary physical equipment and resources and be responsible for the actual transportation by rail of the containers.
These two subsidiaries will be operational before the end of 2006, provided the European competition authorities give their approval. The transfer of Rail Link’s current businesses to the new combined transportation operator and the entry into service by the end of 2006 on the Marseille-Germany route (among others) of the first locomotives bought by the rail company will enable business volumes to rise rapidly. Revenues are expected to be around €100 million by 2010 for the transportation service operator and €50 million for the rail company.
Jacques R. Saadé, Chairman of CMA CGM Group, declared that “the bulk transportation of containers over long distance on land by rail is the right response, both economically and environmentally, to the growth in sea-born trade. CMA CGM and Veolia Environnement share this vision and their partnership will create new growth opportunities. CMA CGM’s worldwide sales network will be at the service of this partnership, while Veolia Environnement will contribute its expertise in rail transportation.”
Stéphane Richard, Deputy Chief Executive Officer of Veolia Environnement and Chief Executive of Veolia Transport commented: “After having been the first private rail company in France to start an international service in June 2005 and a domestic service in July 2006, Veolia Transport is consolidating its strategy in rail freight. Faced with the rapidly growing demand for the transportation by land of shipping containers, combined rail transportation helps limit the number of trucks on the roads and contributes to easing the congestion at European ports. This major partnership will therefore enable Veolia to extend its range of services to business (which also respect the environment.”
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