Kuehne + Nagel has teamed up with European rail logistic firm VTG Aktiengesellschaft to merge the two companies’ rail operations under the name VTG Rail Logistics.
The companies expect to start joint operations on Jan. 1, if antitrust approval is granted. When combined, VTG Rail Logistics will boast 270 employees across 12 European countries.
The merger does not include K+N’s intermodal railway logistics arm. VTG will retain majority status in the joint venture.
VTG Rail Logistics will have access to new customers and products due to the combined sales structure of the two companies, and VTG will also have a broader geographic reach than if the two entities remained separate, according to officials.
“This joint venture under the umbrella of VTG Rail Logistics is creating a rail logistics company with a Europe-wide network of locations and completely new possibilities for transport concepts that show the way to the future,” Heiko Fischer, chief executive officer of VTG Aktiengesellschaft, said in a statement.
Kuehne + Nagel unveils European rail JV
