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Europe-focused DB Cargo seeks buyer for UK railfreight business

DB Cargo UK is looking for a new owner, its German parent DB Cargo AG increasingly focused on its core Central European operations. The UK business, which employs around 2,200 people and provides freight, infrastructure, and passenger charter services, has appointed legal and financial advisers to support the sale, but assured it would be 'business as usual' while the process gets under way. UK CEO Andrea Rossi said the business was seeking an owner able to provide "access to additional capital, broader market opportunities, and the scale required to support the next phase of our development". He added that the UK board was "confident that a sale represents the best route to securing the long-term growth, competitiveness, and sustainability of the business". He said DB Cargo's Central European operations were being restructured following the EC ruling on state aid and that a UK transformation programme had improved operational performance and financial efficiency. But these gains had been offset by external factors that had increased costs, affected key markets, and reduced volumes and revenue. A UK rail source told The Loadstar that infrastructure funds might be interested in the business, and suggested there could also be interest from DP World, which was rumoured to have considered UK operator Freightliner when it came to market this year. The source added: "A shipping line might also be interested, but DB Cargo tends to be mainly in 'core' railfreight and not so much in Intermodal, so may be less attractive." DB Cargo UK had been expected to come to market for some time, said the source, adding: "The German government has been subsidising DB Cargo losses for years and recent changes in cross-subsidies have required it to dispose of unprofitable foreign operations." Potential buyers will, however, be assessing the UK railfreight market at a difficult time, said the source. "The railfreight sector is challenged at the moment - the end of coal, bail-outs for steel, a flat construction sector, consumer demand low, Hormuz and wars all taking a toll, and costs rising significantly." Nevertheless, DB Cargo UK's property portfolio was a potentially attractive part of the business, they said, noting it had "interesting land assets" and "ransom strips" that produce income, and "have value". Its rolling stock could also appeal to buyers seeking relatively inexpensive capacity. "[Its] wagons and locos are all fairly old, but cheaper than buying new. Lots have already been sold overseas," the source said. The business also carries historical liabilities and operational constraints, according to the source. "As a former public sector business, it has always had problems with pension liabilities (though they will tell you they have fixed this, I'm not sure) overly restrictive terms and conditions, and always found it hard to improve productivity." Nevertheless, DB Cargo UK said it believed there was a strong future for the business, citing its market share, diverse customer base, substantial asset base, and extensive property portfolio.

Hapag-Lloyd to acquire 25% of box terminal at Rotterdam vital to Gemini

Hapag-Lloyd is set to increase its presence in Europe's largest gateway - a key pillar of the Gemini Cooperation's hub-and-spoke network. The German carrier is to acquire a 25% stake of APM Terminals' Maasvlakte II in Rotterdam to strengthen its long-term access to "automated terminal capacity" and boost its position in "one of Europe's key container hubs". The deal will see Hapag-Lloyd support the terminal's development, capacity expansion, and operational performance alongside APMT, which will retain operational control. It also reinforces Maasvlakte II's role as a key European hub for the vessel-sharing partnership between Hapag-Lloyd and Maersk. "With the planned investment in Rotterdam, we will further enhance the efficiency and reliability of our network. The terminal is a key element for the Gemini Cooperation and fits well with our strategy to build a stronger terminal portfolio in core markets," said Dheeraj Bhatia, CTIO of Hapag-Lloyd and CEO of Hanseatic Global Terminals, the carrier's terminals and infrastructure division. APMT CEO Keith Svendsen added: "Hapag-Lloyd's investment is a strong vote of confidence in a terminal that is critical to the Gemini network and to Rotterdam. "APM Terminals remains the operator and our ambition is to make Maasvlakte II the best terminal in Northern Europe for every customer calling. That means improving safety, quality, delivery, and cost, in that order, while expanding deepsea berth and teu capacity to support customer growth over the decades." Operational since 2015, Maasvlakte II is undergoing a major expansion that will add 1,000 metres of deepsea berth, taking its total to 2,000 metres, more yard capacity, four additional rail tracks, as well as automated terminal tractors and other equipment, and take annual handling capacity to 5.4m teu. Financial details of the deal were not disclosed, and completion remains subject to approval from relevant authorities and regulators.

Mammoth delivers its first 777-200 conversion to Jetran

Mammoth Freighters has delivered its first converted Boeing 777-200LRMF freighter to Texas-based lessor Jetran ahead of the aircraft joining DHL's UK operation. The aircraft (MSN 32222) is the first of more than two dozen Mammoth 777-200LRMF freighters ordered by Jetran, 13 of which will be placed into revenue service within the DHL global network. Additional deliveries from Jetran's order book -- including aircraft bound for DHL and Qatar Airways -- are scheduled for the coming weeks. "This delivery is a defining moment for Mammoth Freighters," said Bill Tarpley, chief executive of Mammoth Freighters. "Seeing this aircraft transition from its public debut -- and pending entry into revenue service with DHL -- demonstrates the immense momentum behind our 777 programme. "We are proud to deliver this milestone freighter to Jetran and deeply appreciate their trust as we continue supplying the market with one of the world's most capable, converted cargo platforms." Jordan Jaffe, chief executive of Jetran, added: "Taking delivery of our first Mammoth 777 freighter represents far more than a fleet expansion -- it validates the exceptional engineering and production quality of this programme as it enters active service with DHL. "This delivery is the culmination of years of joint innovation, and we look forward to watching these freighters deliver enduring value for operators worldwide." In July, the aircraft made its public debut at the Farnborough International Airshow in the UK. DHL said four of the 13 converted aircraft it is leasing are planned to enter service this year. These 777-200LRMFs will join DHL Express' global air network as part of long-term fleet modernisation plans. The first aircraft has been placed with DHL Air UK. The aircraft displayed at Farnborough was converted in Manchester and the modification work included the installation of a large maindeck cargo door and advanced cargo handling systems. Mammoth Freighters received Supplemental Type Certification (STC) from the Federal Aviation Administration (FAA) for its 777-200LRMF in April. The certification paved the way for Mammoth to begin aircraft deliveries to launch customer Qatar Airways Cargo, which has an agreement for five of the aircraft with Jetran.