Competition watchdog gives go-ahead for purchase of rail freight firm

Portugal’s  Competition Authority (AdC) has given the ‘green light’ to Captrain, a subsidiary of Rail Logistics, a division of French logistics and rail freight company SNCF, for the purchase of rail freight carrier Takargo.

According to a notice published by the AdC, a decision not to oppose the merger was adopted on Wednesday as it is unlikely to significantly impede effective competition in the domestic market or a substantial part of it.

The merger, notified by Captrain about a month ago, results from the acquisition by Captrain Holding, a wholly owned subsidiary of Société Nationale des chemins de fer Français (SNCF), of sole control over Takargo – Transporte de Mercadorias and, indirectly, over Ibercargo Rail.

Ibercargo is a Spanish company providing cross-border rail freight transport services between Portugal and Spain, whose capital is owned equally by Takargo and Captrain España, a company incorporated in Spain and 100% owned by Captrain Holding.

In announcing the purchase of Takargo, Rail Logistics said it was “keen to continue to promote rail freight in Europe and accelerate modal shift and the integration of Takargo into the Captrain network, a major European logistics and rail transport player”.

Takargo was set up in 2006 as part of the liberalisation of the European rail freight market, becoming the first private rail freight operator in Portugal.

As part of its development strategy, the company extended its activity to cross-border traffic with Spain in 2009, creating Ibercargo, a joint venture owned with Captrain España that “developed a strong position in the Spain-Portugal corridor.

In the statement in which it announced the purchase of Takargo, Rail Logistics said that the integration of this company would accelerate its development, making the company stronger with cross-selling opportunities arising from Captrain’s wide geographical network and a vast portfolio of customers and services.

“Captrain intends to continue the development of its network with Takargo and strengthen its position in the Iberian Peninsula, capitalising on a fruitful 13-year partnership between the Portuguese company and Captrain España. Takargo will also allow us to support the need for carbon-free solutions on the Atlantic corridor for our customers’ conventional and combined traffic,” said Frédéric Delorme, president of Rail Logistics Europe, in the statement.