May 10, 2013

VTG and Kuehne & Nagel plan rail logistics JV

Written by  Keith Fender
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VTG and Kuehne & Nagel plan rail logistics JV Keith Fender

LOGISTICS group Kuehne & Nagel and wagon leasing company VTG have announced plans to create a jointly-owned rail logistics business after signing a letter of intent at the end of April.

The venture represents an expansion of the existing Hamburg-based Transpetrol company, which is jointly owned by the two companies, into new business areas.

The partners say the new joint venture would expand their present rail logistics activities, enabling the growth of VTG's Rail Logistics unit and allowing Kuehne & Nagel to offer customers an extended range of services in the industrial, agricultural and petrochemical sectors.

The joint company will cover all of Europe well as Russia and Turkey.

Final contracts will be agreed later this year, subject to the approval of the relevant corporate bodies and competition authorities. It is anticipated by both companies that VTG will have a majority shareholding in the new venture; currently VTG owns 74.9% of Transpetrol while Kuehne & Nagel holds the remaining 25.1%.

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