VTG Aktiengesellschaft, the leading global wagon hire and rail logistics company has purchased the Railcraft group of companies.
Railcraft is an international transportation company, established in 1997 in Finland that specialises in the transportation of oil and petrochemical products in Finland, Russia, CIS and Baltic countries.
As of June 1st 2011, VTG will acquire offices in Espoo; Finland, Moscow; Russia and Tallinn; Estonia.
Railcraft rents out its own and leased rail tank cars for mineral oil to customers in the CIS and the Baltic States, in particular in Russia and the Ukraine. The parties have agreed to keep the purchase price confidential.
“For us, the Railcraft takeover opens up an operations gateway into the CIS and Baltic markets. This purchase enables us to continue expanding our broad gauge wagon hire business”, explains Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft.
“Altogether, this transaction affords us the opportunity to enter the world’s second largest railway market with a high quality fleet, an experienced team, and an established customer base on a clear basis and under limited risk conditions”, adds Fischer.
Long freight routes, the special climate conditions, and the raw material driven economy mean that railways are the backbone of the CIS transport system.
VTG had already taken these circumstances into account in 2008 with the foundation of a subsidiary in Moscow. As early as the late 90s, VTG had already developed rail tank cars capable of travelling on both the Russian and the Western European railway network.
The resulting know-how can be incorporated into the new business. In addition, Railcraft’s transport agreement with the Russian Railways will in future also enable VTG’s Rail Logistics Division to offer freight rates within the CIS and the Baltic without needing to resort to intermediaries.
Railcraft’s own fleet comprises more than 560 wagons, and some 310 additional wagons are leased. The entire fleet is currently working at 100 percent utilisation.
Railcraft was founded in 1997, so that many of its customer relationships already date back to many years.
By also taking over all 14 fulltime employees of the Railcraft Group, seven of whom are based in Russia, five in Estonia, and two in Finland, VTG can expand its business activities with an experienced team.
