Portugal : CP Carga bought by the giant of shipping MSC
Analysis of Mediarail.be - Signalling technician and railways observer
MSC Rail - a subsidiary of MSC Mediterranean Shipping Company SA “MSC” – completed last week the acquisition of CP Carga - Logística e Transportes Ferroviários de Mercadorias SA and took control of the management of the rail-based freight operator. This marks the beginning of the implementation of its long term strategy to strengthen and expand the business of CP Carga. As previously communicated, the deal represents an investment of 53 million euros, of which 51 million euros will be used to recapitalize the company. The signing of the contract between the two entities has followed the public tender for the sale of the CP Carga, which was won by MSC Rail. In this initial closing MSC has acquired 95% of the company – there will be an employee’s sales offer for the remaining 5% - and, among other arrangements, MSC Rail is committed to keep the current “Employees Agreement”.
Carlos Vasconcelos, Managing Director of MSC Portugal reinforces that «
MSC’s investment is part of a long-term development plan that will enhance the infrastructure of the company and turn it into the leading Iberian rail freight operator. We are committed to offering our clients the highest level of service. » MSC will certainly take advantage this acquisition within the corridor "Atlantic" that leads from the beginning of this year, from Lisbon up to Mannheim (see article).
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| CP Carga with his "pre" Vectron, a Siemens locomotive (photo Nelso Silva via flickr CC BY-SA 2.0) |
According to Giuseppe Prudente, Chief Logistics Officer at MSC, «
We have now the chance to put our strategic plan in action, to drive the company towards a bright future and develop it into a major player in the Iberian Peninsula in the coming years. » The acquisition and the related investments demonstrate MSC’s unwavering commitment to Portugal and the development of its logistics sector.
The Portuguese Competition Authority issued their approval for the purchase of CP Carga in December 2015, three months after the initial sale and purchase contract had been signed in Lisbon on the 21st September.
The purchase of CP Carga MSC Carga was announced in July 2015, in the days of the former Conservative government which has established a broad privatization program. The completion of this transaction is contrary to the current socialist government program which wants to stop the privatization of transport companies, particularly in Lisbon and Porto, as well as to redeem the shares of TAP Portugal, the airline.
