Deutsche Bahn eyes expansion to Poland, Romania; forms JV in India

FRANKFURT (Thomson Financial) - Deutsche Bahn AG is considering expanding into Poland and Rumania, and has created a joint-venture with Indian steel company Jindal, Norbert Bensel, head of the company's logistics unit, DB Schenker, told Financial Times Deutschland.

Bensel said Deutsche Bahn is closely following privatisation in Romania, where he expects state-owned logistical companies and cargo unit of state-owned railways to be sold for an amount below 100 mln eur.

Deutsche Bahn is prepared to invest more than 100 mln eur in Poland, Financial Times Deutschland reported, possibly partnering with Russia's state-owned railways.

'We're expecting an operating license for our subsidiary there by early 2008,' Bensel said.

Deutsche Bahn seeks to play in active role in the consolidation of Europe's cargo rail industry, as passenger traffic shows slower growth rates and is still heavily regulated.

However, bids for Polish private cargo rail company CTL Logistics and a stake in Slovenia's state-owned rail operator failed this fall.

On the joint venture with Jindal, Bensel also said Deutsche Bahn will hold the majority in the project, which in a first phase will handle Jindal's cargo operations. He did not disclose the investment, but said it is low as the German rail operator first seeks to gain experience in the country.

He said Deutsche Bahn in a second step will handle logistics of German automotive suppliers in India.
Source: hemscott.com