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UK’s Network Rail could buy DB Schenker assets

30 Oct 2012, 5.09 pm GMT

UK's Network Rail could buy DB Schenker assets

London, 30 October (Argus) — UK rail owner and operator Network Rail has launched a consultation over the potential acquisition of the majority of UK rail operator DB Schenker's property interests.

The sale of 265 property interests is an attempt to reform the management and ownership of rail freight property in the UK in accordance with the 2011 McNulty report and studies by the UK's Office of Rail Regulation.

DB Schenker is one of three major coal hauliers in the UK, and delivers coal to 14 coal-fired power stations in the country.

Rail Freight Group executive director Maggie Simpson said the proposal “offers strategic benefits for the growth of rail freight by separating land ownership from rail haulage, and by encouraging Network Rail to take a proactive role in developing the freight business”.

DB Schenker Rail UK chief executive Alain Thauvette said the sale would help modernise the rail freight industry. “This will allow DB Schenker Rail UK to invest in new terminals and rail freight facilities, increasing the volume of freight moved by rail,” he said.

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