Ministry of Transport wants 1 billion euros from CFR Marfa privatisation

Publish date: 13-12-2007
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The Ministry of Transport (MT) wants to obtain at least one billion euros from the privatisation of CFR Marfa (freight railway), and the sales strategy will be finalised within three months by the Deloitte-Bostina consortium, declared Minister Ludovic Orban on Wednesday. The MT hired the consortium made up of Deloitte Romania and the Bostina si Asociatii law firm for consulting services in the elaboration of the strategy to privatise the company, the value of the contract being 190 000, plus VAT.

"Our objective is to have a successful privatisation, to bring high income, and the minimum level of one billion euros is a realist objective", said Orban, at a press conference. The privatisation of CFR Marfa is aimed at increasing the competitiveness of the company and at gaining shares of the internal and European markets. After the finalisation of the privatisation strategy, a draft Government Decision will be elaborated, and after its approval a new tender will be organised to select the privatisation consultant and the tender documentation will be prepared.

The authorities intend, besides the privatisation of CFR Marfa, to list the shares of the company on the Bucharest Stock Exchange. The listing date will be established by the consultant, within about two-three months. The company has a registered capital of 205.16 million lei, wholly owned by the state through the Ministry of Transport. Last year, CFR Marfa achieved incomes of 530.6 million euros, expenses of 518.4 million euros and a net profit of 8.21 million euros. The company transported 5.2 million tons of freight, of which 1.5 million tons international transport.

According to own data, the company has a 19.4% market share in Romania's railway freight transport. CFR Marfa holds 987 locomotives and 50 980 carriages. The company's gross profit is estimated at 6.5 million lei, this year, a drop of about 40% against 2006, mainly as a result of the decrease in the income from the sale of merchandise, according to the income and expenditure budget for 2007. Referring to CFR Calatori, Orban said the company would be divided into several companies, depending on the type of the journey, respectively international, long-distance or short-distance.

"If I were at the beginning of my mandate, I would have initiated the privatisation procedures for CFR Calatori. After the division has been made, the new companies will be privatisable", the Minister pointed out.

Curierul National

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