The chief executive of Freightliner in the UK has told staff that there is commercial interest in its intermodal rail freight business.
Freightliner in the UK could be on the brink of selling their intermodal rail business. That much has been revealed by Tim Shoveller, the recently appointed chief executive of the group in the UK. The news came in a message to all colleagues signed by Shoveller.
There has been recent other consolidation in the UK rail logistics market. Citing that activity, Freightliner’s chief executive for the UK has sought to head off any alarm among colleagues. Tim Shoveller has revealed that there is potential for the company’s intermodal division to change hands.
Other movements in the sector
There is frequent commercial activity in the UK rail freight and logistics sector. However, the outright sale of one of the most familiar names in the business is not an everyday occurrence. Nevertheless, that could be the case, if commercial interest crystallises into a bid for the intermodal division of Freightliner in the UK. Freightliner last year sold its Scottish intermodal terminal at Coatbridge near Glasgow to a local operator, as reported in our sister platform RailFreight.com, which fuelled speculation about its future plans.
Tim Shoveller, who took up the post of chief executive for the UK and Europe less than two years ago, has told colleagues that Freightliner has been approached several times over interest in their intermodal business. In a letter to staff, he explained the landscape. “Since the sale of [UK rail and road intermodal logistics operator] Maritime to MSC [in September last year] we have been contacted by several major companies who are interested in our intermodal business,” he wrote.
Options being examined by Freightliner
The exact nature of those commercial enquiries has not been revealed. However, it would make sense for other shipping lines, port operators, or other investment houses to be interested in the healthy business, which operates across England, Scotland and Wales in the UK (there are no rail freight operations in Northern Ireland). Shoveller said in his letter that the business overall was in good shape. “New contracts, services, higher volumes for both intermodal and Heavy Haul [bulk] customers,” he said.
The chief executive’s letter seeks to put to rest any fears for staff. “If there is a sale, I expect Heavy Haul, RRF [Rotterdam Rail Feeding] and FPL [Freightliner Poland] will continue to be part of our group,” he said, noting that the company’s executive team was proactively examining options, which include an outright sale, a selection of new investment interest, all the way through to no change at all. “I am proud of the strong efficiency initiatives that have been implemented across our rail, road and terminal operations, and the future is bright for Freightliner Intermodal and Heavy Haul, as the backbone of the UK economy.”
Tim Shoveller has agreed to address all colleagues in a business-wide meeting on 23 January. Freightliner has been approached for further comment.