MSC Mediterranean Shipping Company (MSC) has been chosen to resurrect the fortunes of Spanish national railways company Renfe’s freight operation.
The board of Spain’s state-owned rail group has approved a move to select MSC subsidiary Medlog as a strategic partner, El Pais reported.
The deal must now be ratified by the country’s Council of Ministers. A collaboration model and the business plan will then be decided.
Medlog was chosen after more than a year of talks with more than 30 private companies, including rivals AP Moller-Maersk and CMA CGM.
Freight unit Renfe Mercancias aims to become a comprehensive logistics operator, integrating its services into those of MSC.
Spanish media views the most likely way forward as the formation of a 50:50 joint venture that would control assets and rolling stock.
Medlog would assume management responsibility.
Trade unions have been told of the agreement, which includes a job guarantee for 100% of the 945 freight division workers, sources told El Pais.
But the UGT union said it fears the plan is a “covert privatisation” that will not guarantee profitability.
Since 2011, Renfe Mercancias has racked up losses of more than €400m ($423m).
Last year, the deficit was €38.4m.
European funds and domestic grant
Renfe Mercancias has a 52.8% Spanish market share, followed by French company Captrain on 17.1%.
MSC and its partner intend to capitalise on European Union funds designed to boost decarbonisation of transport.
The rail company carries 642,000 teu per year.
This month, it received a €13.7m grant from Spain’s Ministry of Transport, Mobility and Urban Agenda to encourage green initiatives.
