BLS Cargo and DB Schenker Affirm Alpine Transit Co-operation

01.07.2008 (11:50)

DB Schenker and BLS Cargo will continue the Alpine transit partnership they began in 2002 in line with the existing business model.

The main focus of the co-operation is on freight crossing the Alps on the North-South corridor through Switzerland, with cross-border operations and joint products in combined and conventional rail freight traffic, eyefortransport.com reports.

In addition to renewing the co-operation agreement, DB Schenker's rail freight arm increased its shareholdings from 20% to 45% by purchasing 25% of BLS's share in BLS Cargo. DB Schenker had already secured an option to increase its shareholding at the outset of its involvement in BLS Cargo. BLS will remain the majority shareholder in BLS Cargo in international rail freight traffic.

The agreements were signed on June 25th. The transaction applies retroactively as of January 1st, pending the agreement of the antitrust authorities.

The parties agreed not to disclose the purchase price.

BLS Cargo provides approximately 96% of its services in transit traffic through Switzerland via the Lötschberg-Simplon and Gotthard lines. With a 40% share of the rail transit market, BLS Cargo's revenues in 2007 exceeded CHF190 million.