Servtrans negotiates acquisitions worth tens of millions euro in Europe

“We have decided to buy several Romanian companies to reduce maintenance costs by up to 50 percent. Last year we spent RON 161 million [€44 mln] of which 4.4 percent were maintenance costs,” said Sorin Zbengheci, Marketing Manager of Servtrans Invest.

Market sources have indicated that the local companies in question could be the former maintenance and train car repair service companies of Romania’s national railway company, Calea Ferata Romana (CFR), privatized in 2004.

“As concerns Western Europe, we could buy the transportation license so that our cars can operate better in that area. Furthermore, we want to sign contracts with countries of the former Soviet Union, with Ukraine and the Republic of Moldova, where movement is very difficult,” added Zbengheci.

Servtrans Invest and CFR Marfa, the merchandise transport division of CFR, will establish a joint venture to modernize the rolling stock owned by CFR Marfa.

Servtrans Invest is estimating €48.6 million in turnover in 2008, 10 percent more year-on-year. The company has already invested €15 mln to modernize locomotives.