Freightliner PL to be sold

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This story was written in good faith, but based on inaccurate information supplied to BTWT at the time. We withdraw unreservedly the comment that Freightliner PL ‘has yet to make a profit’ and that any suggestion that its owners may be looking for a quick sale.

Freightliner PL Class 66 front ends. Photo Freightliner PL.

Freightliner PL, the Freightliner group’s foray into mainland Europe, is to be sold. The move follows the company owners, Arcapita, filing for Chapter 11 on March 19. Arcapita formerly known as First Islamic Investment Bank listed assets of $3.06 billion and liabilities of $2.55 billion.

Freightliner PL, was always going to be a long-term project. The company invested heavily in new locomotives and rolling stock and has yet to make a profit. Currently Arcapita needs cash urgently. The bank is under siege from hedge funds who have bought into its debt.

The million dollar question is – who will be come forward to purchase Freightliner PL and at what price. The result will be a good indicator as to what PKP SA can expect to raise from the forthcoming privatisation of PKP Cargo?

One obvious contender would be DB Schenker, though some analysts would say that by building up its road fleet DB Schenker is hedging its bets regarding its rail operations in Poland, and would be unlikely to make a bid for Freightliner PL unless at garage sale price.

In fact Freightliner PL is profitable. BTWT has published an unreserved apology to Freightliner PL. [updated 7.7.2012]

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