May 11, 2012

Bure Equity invests in Swedish railfreight operator

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SWEDISH equity company, Bure Equity, has agreed to provide financial backing for RushRail which has won a SKr 700m ($US 104m) contract from Trätåg, a logistics company, to transport

forestry products, timber, pulp and bio-fuel in Sweden starting in 2013. As a result, Bure will invest SKr 20m in RushRail in return for a 30% stake in the company. Bure has also placed a SKr 225m contract with Bombardier for seven Traxx F140 electric locomotives which will be leased to RushRail. The locomotives will be delivered in the fourth quarter of this year.

RushRail started train operations in late 2010, and had an annual turnover of SKr 90m prior to the Trätåg deal. "We are very excited to have gained the trust of Trätåg," says Mr Jan Lindqvist, CEO and co-founder of RushRail. "This is a client with stringent requirements on efficiency, deliverability and flexibility. Bure is a professional owner with a strong capital base who we believe can support us and, together with Trätåg, can be a solid base for our future expansion."

"Together with RushRail, will be able to offer highly competitive freight transport services," says Mr Henrik Blomquist, vice-president of Bure. "Due to its long-term nature, the locomotive investment will enable us to earn healthy and recurring returns."

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