DB Schenker Rail acquired an additional 11 percent of the Italian rail freight operator NordCargo, bringing its total stake in the Milan-based company to 60 percent.
Italy is a major foreign market for Schenker Rail, bringing in approximately 25 percent of the company's total international revenue in 2008. DB Schenker Rail and NordCargo have collaborated for many years.
NordCargo, part of Ferrovie Nord Milano until the end of 2003, generated approximately $58 million in revenue in 2008. The company runs 7,000 trains per year.
The present business of DB Schenker Rail Italia will be transferred to NordCargo, and the activities of both companies merged under the umbrella of NordCargo.
"The amalgamation of these two companies will enable us to improve our product portfolio in Italy and along the north-southbound corridors, thus laying the basis for attracting more transport onto rail in both the international and the Italian domestic markets," said Alexander Hedderich, chairman of DB Schenker Rail.
Contact Thomas L. Gallagher at email@example.com.