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HomeRailwaysRailway Newsletter > Issue 24 - May 2008

Issue 24 - May 2008

Italia Logistica

Italian state-owned Ferrovie dello Stato (FS) and national postal services (Gruppo Poste Italiane) have announced the merging of their respective subsidiaries Omnia Logistica and SDA Logistica to form Italia Logistica. The new joint venture, equally owned by both public operators, is aimed at securing a share of the market for transporting high-value goods and packages, according to Railway Gazette International.

Italia Logistica is expected to combine the experiences and best practice of both original companies – long-distance rail-road transport of large volumes of goods (FS) with widespread delivery (Poste Italiane) – and to deliver integrated door-to-door services.

In 2007, Gruppo Poste Italiane employed 150,000 staff and reported net profits of €843.6 million (25 per cent increase compared to 2006).

(Sources: FS ; Gruppo Poste Italiane ;
Railway Gazette International )

Largest ever order for Siemens

Siemens Mobility Division will build 305 multiple-unit trains for Belgian rail operator Société Nationale de Chemins de Fer Belge (SNCB). The €1.4 billion contract is the biggest order Siemens has ever received in the rolling stock sector. The Desiro ML trains will be manufactured at the Siemens plant in Krefeld-Uerdingen (Germany) and are scheduled for delivery from 2011 to 2016 to be used in the regional Belgian network. Previous generations of Desiro multiple units are in service in Bulgaria, Germany, Greece, Slovenia, the UK, and US.

Last year, Siemens Industry generated sales of around €40 billion, with approximately 209,000 employees worldwide.

(Source: Siemens AG )

Rehabilitation plan for Bosnia

Bosnia's Serb Republic government announced that the US giant General Electric (GE) would help rehabilitate its damaged rail network. The €170m agreement could be signed within a month, according to Milorad Dodik, prime minister of the autonomous region, quoted by Reuters. The first stage of the project is due to start in September. GE would provide the equipment for the construction of a high-speed railway section connecting the northern towns of Doboj and Banja Luka with the northwestern town of Prijedor. Bosnia’s other autonomous region, the Muslim-Croat Federation, is also reportedly close to agreeing a deal to rebuild railways under its jurisdiction.

(Source: Reuters )

Mega budget for Thai railway

The Thai government’s transport mega-project committee has approved a Baht367.3 billion (US$11.6 billion) budget for the construction of five double-track lines with a total length of 2,644 km. International Railway Journal reports that the government plans to invite private companies to invest in the new lines under long-term concession agreements, and to give priority to rolling stock manufacturers if they agree to set up manufacturing sites in Thailand.

The Nation newspaper in Bangkok quoted the transport minister Santi Prompat as saying that Thailand's rail network would be expanded to link with those of Asean countries and southern China.

At present, the State Railway of Thailand has a huge debt of Baht 51.2 billion (US$1.62 billion), costing Baht1.85 billion (US$58 million) in annual interest payments, and a combined pension liability of Baht160 billion (US$5 billion).

(Sources: International Railway Journal ; The Nation )

Eurasia Rail Logistics

Eurasia Rail Logistics (ZAO ERL) has been registered in Moscow as a joint venture between Railion Deutschland AG (Germany), Russian Railways RŽD (Russia), PKP Cargo S.A. (Poland) and the Belarus Railroads (BCH). RŽD holds a 40,1 per cent stake, Raillion Deutschland AG 34,9 per cent, PKP Cargo 15 per cent and BCH 10 per cent of the charter capital of RUB1,67 million (€48 million).

World Cargo News reports that Joachim Gerigk will be the CEO of the new company, which aims to provide optimised rail freight services on pan-European Corridor II (Germany-Poland-Belarus-Russia, with an extension to Asia).

In a separate development, Railion Deutschland and PKP Cargo have embarked on a partnership that will see 44 trains crossing weekly the Polish-German border, travelling between Poznan and the Seddin marshalling yard in Brandenburg, Germany.

(Source: World Cargo News )

Upgrade for Azerbaijan Railways

The World Bank has approved a US$450 million Railway Trade and Transport Facilitation Project for the Republic of Azerbaijan to improve railway services in the country, and for the institutional restructuring of the Azerbaijan Railways (ADDY).

The project will target the 550 km transport east-west corridor running towards Georgia, and has four components: the rehabilitation of the 240 km main line; 50 new locomotives; modernisation of ADDY’s financial system; and project management services.

(Source: The World Bank )

Interoperability of the EU rail system

On 14 May 2008, the Council for Economic and Financial Affairs of the European Union adopted a directive on the interoperability of the rail system within the Community. The new regulation sets a legislative framework aimed at lowering barriers to the placing in service of railway vehicles. Cross-acceptance amongst member states is improved by applying more systematically the principle of mutual recognition and by harmonising national authorization procedures. The European Railway Agency will keep a European register of authorized types of rolling stock in member states.

(Source: The Council of the European Union )

Rail lines for Trinidad

The island of Trinidad will have a new railway network totalling 105 km and about 10 stations by 2013. The government of Trinidad and Tobago and the National Infrastructure Development Company Limited have selected the French Trinitrain consortium, comprising Alstom, Bouygues Construction and RATP Développement (part of the state-owned transport operator RATP) to design, build, operate and maintain an express train railway system in Trinidad. One line will link the capital, Port of Spain, to the south of the island (San Fernando), while the other will cross the island from east to west, from Port of Spain to Sangre Grande, according to The French Railway Industry Association.

After the completion of the first phase of the project, including preliminary design studies, that will cost US$70 million, Bouygues Travaux Publics (a subsidiary of Bouygues Construction) will be in charge of civil engineering, Alstom Transport will supply the rolling stock, whilst RATP Développement will operate and maintain the service for 15 years.

Trinitrain expects to co-operate with other international partners, such as Covec (a subsidiary of China Railways Engineering Corporation), Daynco (a Trinidad and Tobago-based construction company) and the Canadian engineering consultancy Dessau.

(Source: The French Railway Industry Association )

One killed in derailment

A 17-year old student died and several passengers were injured in the worst railway accident in the last 12 years in Romania. On 10 May 2008, a fast passenger train travelling from Bucharest towards Iasi derailed near station Valea Calugareasca (Prahova County), some 80 km from the capital. The locomotive and three coaches went off the rails when they rolled over a switch. The investigation is expected to last several months due to the complexity of the case, as a technical malfunction appeared to have occurred, but human error or a “criminal hand” was not ruled out.

(Source: Evenimentul Zilei )

If you have any feedback, please contact Gabriel Craciun, ITF Senior Researcher (railinfo@itf.org.uk)


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