Railion to establish joint venture with Green Cargo

Railion to establish joint venture with Green Cargo

Germany’s Railion, Europe’s leading rail carrier, said on Monday that it will establish a joint venture with Swedish rail freight company Green Cargo, to improve services on the Sweden-Germany rail corridor.

   Railion is part of DB Logistics, the transportation and logistics division of Deutsche Bahn AG, and the joint venture agreement builds on a cooperation agreement signed between DB Logistics and Green Cargo in October 2005.

   Under terms of the latest agreement, Green Cargo will acquire a significant shareholding in Railion Danmark.

   Railion is in the process of equipping up to 23 multi-frequency locomotives with the appropriate automated train security systems for Scandinavia, ensuring that trains can travel through Sweden, Denmark and Germany without having to change locomotives at the borders.

   “With these locomotives, we will be in a position to simplify the processes involved and increase the quality of the transport service we provide,” said Jan Sundling, chief executive officer of Green Cargo.

   Klaus Kremper, CEO of the Railion Group, said: “We are sending a clear signal to the market. The entire Scandinavian corridor can now be served by a single company. And to this end, the partners of the three countries will be making substantial investments.”