The rail freight transportation market is set to revolve around 1bn euros within the next 3 years, from this year's estimated level of 800m euros, with coal, oil products and cement industry materials as the main commodities expected to support this increase.
With the annual market growth of 10%, companies in this sector expect the volume of shipped freight to reach 800m euros, with CFR Marfa accounting for 75%, and the rest divided among private operators on the market.
The biggest private operator on the rail transportation market is Grup Feroviar Roman, which registered turnover worth 57m euros in 2006, up 16% year-on-year. The company participated through Grampet group in the tender for the privatisation of Hungarian-based MAV Cargo.
Ramnicu Valcea-based Classfer (part of Antares Group, which entered the market in 2004) now accounts for 30% of overall turnover generated by the group, namely 6m euros. "The idea of starting this type of business was based on research regarding the internal conditions of the market. In 2004, demand significantly increased, which meant more diversified services were required, as a result of the development of certain economic sectors, (...)," says Victor Puiu, Classfer manager.
According to him, operating such a business requires financial backing, which is secured through flexible shipping services - the main condition that keeps the company on the market. Puiu says the activity of private rail operators is sustained by the current high demand for the transportation of freight in the energy sector (coal), oil field and constructions industry (cement and derivate products).
Classfer targets turnover worth around 6m euros this year, up 3% against last year, and 57% higher income, to 35,000 euros.
Another firm operating on this market is Transferoviar Grup from Cluj-Napoca, which entered the market in 2004. "(...) Three years ago, the market was not saturated, however, the market has witnessed steady growth since then, with an ever rising number of customers," says Kinga Madarasan, the company's general manager.
According to her, initial investments amounted to several hundred thousand euros. The company expects to generate turnover worth above 13.35m euros this year, up around 30% against 2006.
Bucharest-based Servtrans Invest, controlled by businessman Cristian Burci, entered the market in 2002 and was the first private operator in Romania to enter the European market of rail freight transportation. According to the estimates made by the company's general manager, George Buruiana, the value of freight shipped via rail is expected to come close to 800m euros in late 2007, and could reach to hit the 1bn-euro mark by 2010, as a result of annual market growth of 10%. Servtrans targets a 10% increase in turnover in 2007, from 27m euros in 2006.
800m-euro rail freight market
The market of private rail transporters is currently estimated at 800m euros, and could reach 1bn euros by 2010
CFR Marfa holds 75% of the market, with the rest divided among private rail freight operators
Investments can reach 50m euros for the acquisition of locomotives and wagons
Entering into such a business requires several hundred thousand euros
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