12/19/2007

German railway could invest in India, Poland and Romania: Report

FRANKFURT: The German railway Deutsche Bahn is mulling an expansion into Poland and Romania, and has also created a joint-venture with Indian steel company Jindal, a press report said Tuesday.

Norbert Bensel, head of Deutsche Bahn's logistics unit, told Financial Times Deutschland the company was closely following privatisation in Romania where he expected state-owned logistic companies and cargo units of state-owned railways to be sold for below 100 million euros (144 million dollars).

Deutsche Bahn is prepared to invest more than 100 million euros in Poland, the 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 wants to play in active role in the consolidation of Europe's rail cargo industry as passenger traffic shows slower growth rates and is still heavily regulated.

On the joint venture with Jindal, Bensel 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 India.

He said Deutsche Bahn in a second step would handle logistics for German automotive suppliers in India.
Source: economictimes.indiatimes.com



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