Spain develops new business model for Renfe Freight and Logistics

Renfe will manage traction and route planning as well as the maintenance of rolling stock. Photo: Renfe.

A new operating model has been approved for Renfe Freight & Logistics.
The decision is in line with the Ministry of Development’s strategic plan to boost rail freight by promoting intermodality and by achieving a more balanced modal split, with greater participation of the railways, as well as by contributing to sustainability and the fight against climate change by reducing the emission of greenhouse gases and dependence on oil.
The new business model aims to provide added value to the global supply chain through improved quality of services, efficiency, reliability and sustainability of freight transport services, as indicated in EU regulations.
The new business model also aims to improve economic sustainability, trade capacity and the internationalisation of Renfe in order to compete in a liberalised market and to increase its market share.
Three new companies have been created and are entirely owned by Renfe.
They are being developed according to different activities within the transport market:

• MULTI deals with activity in the Bulk & Multiproduct business area, specialised in the transport of materials such as wood, paper, dry bulk (coal, cement, cereals) and fluids (fuel, chemicals)
• IRION deals with activity in the iron and steel sector, specialised in the transport of materials associated with the metal industry: coils, steel, rails, pipes, etc.
• CONTREN deals with activity in the intermodal business area, specialised in the transport of intermodal transport units (containers).

The operating model is completed with PECOVASA, the logistics operator specialised in the transport of parts and components and finished vehicles.
These four trading companies, whose capital will be opened to private participation of up to 45%, will have management autonomy and differentiated structures to develop the marketing of their services.
Analysis carried out by Renfe forecasts economic and financial sustainability of these companies by improving income – through more specialised business orientation – and cost efficiency improvements.
It is expected that by 2014 every company will be economically sustainable.
Renfe, meanwhile, will manage traction and route planning as well as the maintenance of rolling stock.