The authorities have launched the international tender process on the 100% sale of Trainose, the Greek railway passenger transport operator. The tender will be carried out in two phases, the first one including the expression of interest and the second one the submission of the financial offers by the shortlisted investors. The launch of the tender has awakened the interest of many companies which now want to enter the Greek railway sector.
Even though the economic situation in Greece is still troubled and demands the application of policies and projects that would help the country recover and the sale of state companies represents an important economic pro-
cess, the acquisition of shares in the Greek companies is an essential step for other companies that want to extend and consolidate their position in the European market. This is also the case of the national railway operator, Trainose, for which in June the Hellenic Republic Assets Deve-lopment Fund (HRADF) launched the tender on the sale of a 100% stake in the company.
Trainose provides railway passenger and freight transport services, is responsible for the development, organization and exploitation of regional, urban, suburban and international railway transport services, but also supplies bus or combined transport services (for the freight and passenger segment), as well as logistics services. Any company or consortium interested in the privatization of the company will have to prove that, as corporate entity, the annual average of its consolidated capital in the past three years has exceeded EUR 100 Million and, as private capital company, the sum of assets over the past years has exceeded EUR 200 Million. In the case of a consortium, the financial capacity criteria have to be met by each member of the joint-venture.
From 2007 to 2009, Trainose has recorded an operating deficit of EUR 240 Million, but, as of 2010, the company has applied a recovery and restructuring plan consisting in the application of a new tariff policy, the implementation of a management scheme for intercity transport and the amendment of the freight transport expenditure system that would promote block train services.
For the freight transport segment, the company has established a strategy for the development of connections between the railway network and ports (Piraeus, Alexandroupolis), logistics and industrial centres (Cosco terminal, the development of facilities for Thessaloniki container terminal) and the conclusion of direct contracts with the large industrial companies. To improve the infrastructure and transport services, Greece could initiate the electrification of Athens-Tithorea line, the modernisation of Thessaloniki switchyard and the utilisation of Thriassion intermodal freight centre. Moreover, in the first quarter of the year, the EU will allocate EUR 1 Million via the TEN-T so that the studies necessary to the development of the Athens-Thessaloniki railway will be completed.
Russia, France and China, interested to buy the shares
If the projects are implemented, in the next 10 years Greece could become an important supplier of transport services in South-East Europe by providing viable transport offers in the logistics chain to Central Europe, the Balkans and Far East.
As Greece plans to become an important point on the map of transport, the interest in the acquisition of Trainose becomes higher and higher. To that end, RZD could create a consortium with SNCF to participate in the tender for Trainose. The consortium could also include other companies from Greece.
During a visit to Greece, RZD President Vladimir Putin said that “several details have been establishment about the participation in the Trainose sale process and there are companies from Western Europe that are interested to collaborate in the tender for Trainose”.
Also, Kopelouzos Group (Greek energy and natural gas company) has proposed a form of partnership to the Russian company to elaborate a participation offer in the privatisation of Trainose. Kopelouzos is active in Russia through Prometheus Gas Company in which it holds a 50% stake. Prometheus Gas is a JV with Gazprom. “We have a permanent collaboration with RZD”, declared a representative of Kopelouzos. However, RZD has not yet answer to the proposal made by Kopelouzos Group.
Participating in the Trainose sale is not the first choice for RZD, as in June Yakunin asked President Vladimir Putin to support the company in the privatisation of Thessaloniki Port. According to the declarations made by Yakunin, if it didn’t receive public financing, RZD would have to set-up a consortium with a foreign partnership to buy the assets put to sale in Greece. The funds used by RZD for the acquisition of Greek companies will mainly come from loans. According to data, the starting price is EUR 100 Million for Thessaloniki Port, EUR 30 Million for Trainose and EUR 10 Million for Rosco.
The Greek press says that companies from France, China, Italy and Germany are interested to buy Trainose.
China could participate through naval operator COSCO which announced it would make an offer if the Piraeus Port Authority agreed to reduce the tariffs applied for the use of docks. COSCO plans to participate in the tender for Trainose as the two companies are developing transport partnerships in the Port of Piraeus and, according to the press, the Chinese are interested in the acquisition of the main railway on the north-south axis.
Another company which seems to be interested to buy Traionse is Grampet Group-GFR from Romania, a company which in July won the tender for the privatization of HZ Cargo (Croatia) and bought a 75% stake in the Croatian operator. Also, in June, the Romanian operator was selected the winner of CFR Marfă’s sale process (Romania) for EUR 202 Million for the acquisition of a 51% stake.
Trainose was established in 2005 as subsidiary of OSE and in 2008 was transferred to the Greek central authorities. The ope-rator delivers railway passenger and freight transport services, organizes, develops and exploits urban, suburban, regional and international services. The trains of the company cover a network of over 1,500km and carry an annual 15 million passengers and 4.5 million tonnes of freight.
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