Selling Britain by the box. Freightliner could be about to parcel up its intermodal rail business, in the face of commercial interest. Tim Shoveller, appointed chief executive of the group less than two years ago, has broken the news to staff in a personal message. He has told staff that there is commercial interest in its intermodal rail freight business.
There has been recent other consolidation in the UK rail logistics market. Citing that activity, Freightliner’s chief executive for the UK and Europe 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. Shipping line MSC bought Maritime recently, and Freightliner sold its Scottish terminal to local operator Russell RailRoad back in September. 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.
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 Maritime to MSC [UK rail and road intermodal logistics operator 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.