ICF adopts restructuring plan to raise profits

ICF adopts restructuring plan to raise profits    Intercontainer-Interfrigo, the struggling European intermodal company, has approved    plans designed to bring the company to a balanced operational result in 2004 and reach sustainable profitability from 2005.
   The board of Intercontainer-Interfrigo has decided to “reposition” the company in the market and has set management the following goals: establishment of a “properly controlled, concentrated network;” reductions in the cost of the company’s internal and external structures; balanced operational result in 2004; and return to sustainable profitability from 2005.
   In particular, the existing hub systems and block-train services that form the basis of Intercontainer-Interfrigo’s production system will be re-examined and optimized from the point of view of quality and financial return, the company said. It will “redesign” its service portfolio, keep the principal traffic flows, and extend the profitable ones.
   Denis Dout', chairman of the board, said that the potential on West-East routes must be better exploited, activities on the North-South corridor revived, and Intercontainer-Interfrigo’s market position consolidated on selected routes in Western Europe.
   Intercontainer-Interfrigo cited the context of declining traffic volumes and revenues under the combined effect of a depressed economy and changes in production system structures on a number of railways that have particularly affected traffic in wagonloads.
   The market situation failed to show any signs of improvement in the first few months of this year, it added, while mid-term prospects suggest a major change.