Deutsche Bahn acquire PCC Logistics!

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Will Cargo be next?

tamara_chrzanow_1

TEM2-182 banking a PCC Rail coal train through Chrzanowie. TEM2-097 is at the head, November 2006. Photo Wikipedia Commons

(Click to see photo in original context and for details of licensing.)

On Friday 30 January, in Warsaw, contracts were signed for the acquisition of the PCC Logistics arm of the PCC Group by Deutsche Bahn. Legal completion is conditional on agreement by the relevant authorities.

PCC Logistics the largest private rail carrier in Poland with an 8-percent share of the market. It employs some 5,800 people, and in 2008, had a turnover of EUR 350 million. The company specialises in train load freights of coal, chemicals and aggregates.The company operates 400 locomotives and 7,700 goods wagons. The company also has 3 depots which repair its locomotives and rolling stock.

The acquisition massively strengthens the negotiating position of Deutsche Bahn with respect to its planned takeover of PKP Cargo. With a likely 2008 loss of ½ billion PLN, the Polish treasury will be keen to find a buyer for the state owned freight carrier. Now, with PCC under its belt, Deutsche Bahn can play hard to get until the Polish Treasury comes up with an affordable price.

The the deal with PCC also strengthens DB’s arm when dealing with the PKP Cargo railway trade unions. Should any of them attempt a strike over the any changes to the terms of its members’ employment, DB could continue to service Cargo’s key accounts by deploying rolling stock and people from its PCC business.

When it comes to its employees, DB is prepared to play rough. A couple of weeks ago a story broke that DB had ordered checks on the private details of  over 170,000 of its own employees. The massive monitoring included investigating workers’ private bank accounts without their knowledge.

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