Från: C. Koelewijn
Ämne: DB Cargo takes over NS Cargo
Datum:  den 23 juni 1998 23:07

DB Cargo takes over NS Cargo
The freight department of German Railroads, DB Cargo, will 
become owner of the freight department of Netherlands 
Railroads' freight division: NS Cargo.

With this merger the small goods division of Netherlands 
Railroads (NS) and rail giant Deutsche Bahn Cargo will 
constitute the first cross-border carrier in the European 
rail market. Both parties already co-operated in NDX, in 
which DB owns 50 percent, NS Cargo 25 percent and CSX in the 
US 25 percent.

In the course of today the parties will announce - in Mainz 
in Germany - share ratios as well as other details. NS Cargo 
realizes a turnover of $ 150 million, DB Cargo achieves a 
total of nearly $ 3 billion. Both companies are loss-making.

NS Cargo had been negotiating on an alliance with a large 
number of companies, among them the national railroads of 
Switzerland, Austria, Italy, the Scandinavian countries, and 
with such American concerns as Wisconsin Central and CSX.

Initially, the Dutch company was anything but keen on 
co-operation with the Germans. The two nations traditionally 
view each other as competitors.

For the port of Rotterdam this merger between DB and NS Cargo
may work out favorably in view of the German hinterland's 
importance to Rotterdam harbor.

The merger will have consequences for the further development 
of the rail market. The liberalization has still hardly come 
into its stride, but already the parties are getting together 
in order to prevent excessive competition.

It is expected that Belgian railroad company NMBS will tend 
towards an alliance with French railroad company SNCF.

Source: NS Cargo
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