Plans for a merger of rail logistics operations by Kuehne + Nagel and VTG Aktiengesellschaft advanced today with the signing of a merger agreement by K+N Chairman Karl Gernandt and VTG CEO Heiko Fischer.
The joint venture, VTG Rail Logistics, will begin operations on Jan. 1, 2014, subject to regulatory approvals. VTG holds the majority share in the new firm, which will have about 270 employees in 12 countries.
The corporate leaders said that the new company will have a broader geographical reach, thanks to Kuehne + Nagel’s global network. The companies expect business to increase for the new joint venture, particularly in the area of industrial goods. Plans include development of multimodal transportation from northern Europe to the Bosporus and from western Europe to Russia.
“This joint venture under the umbrella of VTG Rail Logistics is creating a rail logistics company with a Europe-wide network of locations and completely new possibilities for transport concepts that show the way to the future,” Fischer said in a written statement.
“I am very pleased that we have been able to further extend our long-standing partnership with VTG,” Gernandt said. “The merger enables us to combine the expertise of two strong logistics partners that complement each other perfectly in terms of the regions and operations they focus on.”
Kuehne + Nagel’s intermodal railway logistics operations are excluded from the merger.