DB Schenker Rail expands in Italy

DB Schenker Rail expands in Italy    DB Schenker Rail has increased its stake in the Milan, Italy-based rail freight operator NordCargo from 49 percent to 60 percent.
   DB Schenker described Italy as one of its most important foreign market, with transports to and from Italy accounting for roughly one quarter of the company’s total international revenues in 2008.
   NordCargo was hived off from parent company Ferrovie Nord Milano (FNM) at the end of 2003. Employing 200, it had 2008 revenue of roughly 40 million euros ($58 million) from international and domestic transports. The company is licensed to operate on the Italian rail network, runs 7,000 trains per year and is provides traction on international routes along the Adriatic and Tyrrhenian coasts between Milan and Naples. NordCargo has been active in the freight transport market since September 2001.
   DB Schenker Rail Italia operations will be merged with those of NordCargo and the number of employees will increase to about 300.
   “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,” explained Alexander Hedderich, chairman of DB Schenker Rail.