DB Buy out EWS & Transfesa

[Hentis]

Taken from EWS Newsroom

Deutsche Bahn plans takeover of EWS and Transfesa
Thursday 28 June 2007

Following the approval of the Supervisory Board of Deutsche Bahn AG granted at yesterday’s meeting, the company plans to take over the entire shares in English Welsh & Scottish Railway Holding Limited (EWS) and acquire a majority share in the Spanish company Transportes Ferroviarios Especiales (Transfesa). Once the contracts have been signed and the approval of the relevant authorities obtained, the acquisition of these two companies will consolidate DB’s leading position as a global player in the transport market, especially in the rail freight sector in Europe. As a result of this move, DB Logistics will extend its central corridors in Western Europe and will be able to develop even better products for its customers as a one-stop shop.

“The transport and logistics industry is booming. Only companies which can offer their own network and consistently high quality standards will be able to succeed in that market. The climate-friendly rail mode still is and will remain our core business,” explained Hartmut Mehdorn, CEO and Chairman of the Management Board of Deutsche Bahn AG. Looking at the stagnant, loss-ridden rail freight transport markets in many European countries, Mehdorn claimed that de facto liberalisation of the rail network was a crucial requirement for growth and economically efficient operations. He pointed out that Germany was a perfect example of how open access to the network, which is used by more than 330 rail companies, could lead to a substantial increase in rail traffic, and added that DB AG would continue to encourage European liberalisation in future.

DB Logistics Chairman Norbert Bensel stressed the growing business potential for the company resulting from this new constellation: “The expansion of our Europe-wide network is our answer to the increasingly complex demands of our customers. EWS and Transfesa will enable us to close important gaps in the DB Logistics rail freight network. As a result, we shall be better equipped in future to offer our customers attractive products.”

Following the takeover of the two companies, DB Logistics will have direct links to the transport and logistics markets in Western and Southern Europe and will thus strengthen the south-west corridor. The integration is intended to lead to a noticeable boost in rail’s market share in Europe and raise product quality. DB Logistics, EWS and Transfesa complement each other ideally, especially in the rail logistics, automotive, industrial and bulk goods segments.

Moreover, DB Logistics hopes that this acquisition will improve its business position in France, where EWS is already represented by its subsidiary Euro Cargo Rail. At the same time, DB’S avowed aim is to continue its close cooperation with SNCF, which is already successful in the single wagonload segment, and win a higher volume of transport for rail by offering attractive products.

EWS – the largest British freight railway and one of the largest freight transport companies in Europe – specialises in trainload transport in the energy industry, industrial freight and building materials segments. Its business activities in the United Kingdom and its emergent market position in France make EWS an excellent complement to DB Logistics. “We can build on the platform we have created in the UK and France for rail freight growth, offering our customers a comprehensive European rail freight network”, said EWS Chief Executive Keith Heller. “This agreement between DB and EWS will allow greater volumes to be moved by rail.” With a workforce of around 5000, the company generated revenues of approx. EUR 770 million last year.

The Spanish company Transfesa is a global provider of transport and logistics services specialising in rail and road transports in the automotive, bulk goods and general cargo segments. “This operation will boost rail freight sector on the Iberian Peninsula, will contribute to the process of liberalisation in this part of Europe and will enable Transfesa to take forward its international strategy improving its offer and quality of service to the client”, said Transfesa General Director Luis del Campo. Thanks to its excellent coverage of the Iberian economic area as well as its gauge changeover facilities, Transfesa will provide DB Logistics with ideal access to the south-west corridor. The company currently has around 1100 employees and generated revenues of approx. EUR 290 million last year.

Cheers

Hentis

 

[Dennis]

So EWS stock might be rebranded SEWSFAG - Spanish, English, Welsh, Scottish, French and German.

Although it seems a little odd to me that DB is state owned and the purchasing of private companies in this way effectively amounts to renationalisation, it must be good for European railfreight operations to become a bit more 'joined up'.

 

[Crompton Karl]

DB will be privatised next year. So its will be a short year of near renationalisation.

It seems that DB will rebrand their services in the UK "Railion UK" or "Railion GB" and Euro Cargo Rail in France will probably become "Railion France". If they want to expand services in France (especially with the purchase of Transfesa, DB more than likely haul their own French/Spanish cross border services rather than let SNCF do it for them) then i expect more Sheds to go to France. Really wanna see the new livery, cause i think its goodbye red and gold and the EWS name.

Good news for the 60's and 92's DB prefer not to use Diesels under the wires and with more 66's to France then more 60's back in traffic. Also, once privatised you could see more new locos on order too.

I think its a good thing.

Karl

 

[David]

DB will be privatised next year. So its will be a short year of near renationalisation.

It seems that DB will rebrand their services in the UK "Railion UK" or "Railion GB" and Euro Cargo Rail in France will probably become "Railion France". If they want to expand services in France (especially with the purchase of Transfesa, DB more than likely haul their own French/Spanish cross border services rather than let SNCF do it for them) then i expect more Sheds to go to France. Really wanna see the new livery, cause i think its goodbye red and gold and the EWS name.

Good news for the 60's and 92's DB prefer not to use Diesels under the wires and with more 66's to France then more 60's back in traffic. Also, once privatised you could see more new locos on order too.

I think its a good thing.

Karl

A couple of things with that....

There has been talk recently that EWS want over 80 class 60s in service soon anyway. If it's connected with this, I do not know.

Also, the acronym of Railion UK is RUK, same as this forum. Tom, get RailUK and RUK trademarked asap. You could be in the money big time

 

[Hentis]

I heard a figure of about 175 sheds to France the 60's being utilised in the numbers of about 84, the 56's and 58's re-entering service. But how true that will be we will have to wait and see.

Hentis

 

[devon_metro]

Thats sounds great!

 

[class 313]

Thats sounds great!

I wouldn't hold my breath!

How many 58s are in a working order? Same with the 56s

 

[Tom]

Loads of 58s stored at EH works....

 

[Hentis]

I wouldn't hold my breath!

How many 58s are in a working order? Same with the 56s

Loads of 58s stored at EH works....

Courtesy of www.wnxx.com

58002 58004 58006 58007 58009 58010 58011 58013 58015 58017 58018 58021 58026 58027 58032 58033 58034 58037 58040 58042 58046 58047 58049 58050

A few of them are not in working order (58002 is one of them) as they have had the guts ripped out of them to go in the other lot that went abroad. I would possibly say less than half. 58050,49, 46, 47 are in good nick. Although most of these did not have any overhauls when they were EWS used. Mostly all ran into the ground.

You have to think about the 66s as some of these are nearly 10 years old and they havent had an overhaul. isnt it 66032 at Toton in a miserable state with bits being "borrowed" from it?

Hentis

 

[class 313]

Courtesy of www.wnxx.com

58002 58004 58006 58007 58009 58010 58011 58013 58015 58017 58018 58021 58026 58027 58032 58033 58034 58037 58040 58042 58046 58047 58049 58050

A few of them are not in working order (58002 is one of them) as they have had the guts ripped out of them to go in the other lot that went abroad. I would possibly say less than half. 58050,49, 46, 47 are in good nick. Although most of these did not have any overhauls when they were EWS used. Mostly all ran into the ground.

You have to think about the 66s as some of these are nearly 10 years old and they havent had an overhaul. isnt it 66032 at Toton in a miserable state with bits being "borrowed" from it?

Hentis

Yes, but. Do they have all the safety requirements? Such as OTMR

 

[Jordy]

I would doubt them having OTMR

 

[Hentis]

Yes, but. Do they have all the safety requirements? Such as OTMR

DOubt it but seeing as its no longer EWS but Railion UK? then will it matter the Germans authorizing the use of them. They cannot get along with just 75 sheds if the figure of 175 to France is correct. Not even that many 60's will help either. Although by the looks of it they have lost the Marchwood MOD traffic from September and apparently all the coal traffic but I am not 100% on the coal traffic.

Hentis

 

[class 313]

DOubt it but seeing as its no longer EWS but Railion UK? then will it matter the Germans authorizing the use of them. They cannot get along with just 75 sheds if the figure of 175 to France is correct. Not even that many 60's will help either. Although by the looks of it they have lost the Marchwood MOD traffic from September and apparently all the coal traffic but I am not 100% on the coal traffic.

Hentis

But all trains that run on the MainLine need OTMR , this has been in rule since April this year.

 

[g4mby]

Well we're too late to register railion.co.uk

Domain name: 
        railion.co.uk 

    Registrant: 
        Deutsche Bahn AG 

    Registrant type: 
        Non-UK Corporation

And http://www.railion.co.uk/ redirects to a DB page.

 

[Hentis]

But all trains that run on the MainLine need OTMR , this has been in rule since April this year.

I know they require them. But what I am saying is that if the figure of 175 sheds to La France is correct then the 80+ 60's, 90's, 92's and 59's arent going to be able to do all the services that are planned, without :-

A) Either the stored 58's or 56's being utilised which as you point out will require OTMR equipment to be fitted as well as the Standard AWS as well.

B) New batches of 66's in Railion and or Euro Cargo Rail livery to be ordered.

I did hear a few months ago about EWS planning to order some 66's to French Specifications and in Eurocargo Rail livery but how true that is I am unsure.

Cheers

Hentis

 

[Humberside]

Although by the looks of it they have lost the Marchwood MOD traffic from September and apparently all the coal traffic but I am not 100% on the coal traffic.

Surely EWS wouldnt loose all their coal traffic?

 

[Hentis]

Surely EWS wouldnt loose all their coal traffic?

Its what I have been told on Friday, but like I said I am not 100% certain.

Cheers

Tony.

 

[Sprog]

175 class 66s to France??

Ermmm, someone has been majorly pulling your leg.

Maybe 75 Le Sheds if your lucky, but if any of you believe that the 56s and 58s are comming back, you're in cloud cookoo land.

When DB take over, they will probably get rid of all the minor or small time traffic and just stick to bulk flows, as they have done in other countries, letting other FOCs have them if they want.

The TUGS will probably also get some much needed atttention, howerer, Heller is staying so im not sure.

I think they only main reason they bought EWS is for ECR so they can operate in France and through to Europe via the Channel Tunnel (and the French cant do anything about it, as all the licences are already agreed.

Itll be a case of *shrug* "It's not our fault, we just happen to own it", when the french ask how DB have got their own way

I think things can only get better too be hounest and this should be the start of some interesting times.

I am persoanlly watching with interest.

 

[Hentis]

175 class 66s to France??

Ermmm, someone has been majorly pulling your leg.

Maybe 75 Le Sheds if your lucky, but if any of you believe that the 56s and 58s are comming back, you're in cloud cookoo land.

I am not saying its gospel and I did not say that I beleive it to be correct. I said at the bottom of the post we will have to wait and see.

Hentis