2019

EUROPEAN RAIL FREIGHT TRANSPORT MARKET 2019

Developments – Volumes - Players

Extract

EUROPEAN RAIL FREIGHT TRANSPORT MARKET 2019 Developments – Volumes – Players

Available in English from 29th March 2019. Now you can also purchase the data annex in Excel format (see overview data sheets on page no. 6 for more information).

With its “European Rail Freight Transport Market 2019” MultiClient study, SCI Verkehr is responding to the current high demand for information on the present situation in the market for rail freight transport and its operators. The aim is to make available a reference work, which provides comprehensive information on all key companies active in rail freight transport in Europe, covering their market environment and competitive situation. SCI Verkehr has already compiled several Multiclient Studies on this topic.

The European rail freight market has increased significantly in the last years, reaching almost the pre- crisis levels of 2007 and 2008. In 2017, the decrease of the incumbent’s market share stopped for the first time. However, many operators are financially still in a difficult situation, despite the implementation of restructuring activities and cost-saving measures.

In concrete terms, the market study includes: − A comprehensive overview of the European railway freight transport market, including major trends and central points of development − An analysis and benchmark of the most important rail freight transport operators in Europe − A deep analysis of the rail freight transport in 26 country markets, including: − Development of basic parameters (rail freight performance, GDP, modal share) − Outlook on the medium-term period, evaluation of the market drivers − Development of the transport performance per destination (national, ex-/import, transit) − Overview of the rail freight infrastructure and major transport corridors − Development of the goods structure transported per rail − Development of market shares of national incumbents and independent private competitors − Rail freight turnover of the most important players measured in EUR − Information about most important changes in operator landscape − Overview of freight rolling stock fleet per country − Fact sheets of 79 operators

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© SCI Verkehr GmbH • www.sci.de • European Rail Freight Transport Market 2018 2 Extract

This MultiClient Study is based on numerous information sources, which are continuously analysed and evaluated, and are recorded in SCI Verkehr’s database system.

SCI Verkehr is an independent consultancy company for the mobility sector with activities around the world. We specialise in strategic advice to the railway and logistics industry. We have established an international network of professional experts. Our activities focus on companies in the transport and rail industry and in the transport operation, logistics and financial sectors, as well as the transport and economics departments at national, regional and municipal levels.

Your contact: SCI Verkehr GmbH Tel: +49 221 93178 20 Fax: +49 221 93178 78 E-mail: [email protected]

© SCI Verkehr GmbH • www.sci.de • European Rail Freight Transport Market 2018 3 Extract

CONTENTS

1 Market delimitation and methodology of the study ...... 15 1.1 Objective of the study ...... 15 1.2 Delimitation of the market ...... 16 1.3 Calculation of the market volume ...... 20 2 Rail freight market in Europe ...... 21 2.1 Summary ...... 21 2.2 Rail freight transport performance and economic development ...... 25 2.3 Transport lines/rail freight infrastructure ...... 36 2.4 Transported goods ...... 44 2.5 Rail freight transport operators ...... 61 3 Country markets ...... 69 3.1 Germany ...... 70 3.2 Poland ...... 84 3.3 France ...... 96 3.4 Italy ...... 108 3.5 The United Kingdom ...... 120 3.6 Sweden ...... 130 3.7 ...... 140 3.8 The Czech Republic ...... 151 3.9 Switzerland ...... 160 3.10 Romania ...... 168 3.11 Spain ...... 176 3.12 Slovakia ...... 186 3.13 Slovenia ...... 194 3.14 Bulgaria ...... 199 3.15 Finland...... 204 3.16 Norway ...... 208 3.17 The Netherlands ...... 213 3.18 Belgium ...... 218 3.19 Portugal ...... 223 3.20 Turkey ...... 227 3.21 Hungary ...... 232 3.22 Croatia ...... 237 3.23 Estonia ...... 239 3.24 Lithuania ...... 241

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3.25 Latvia ...... 243 3.26 Denmark ...... 245 4 Company Factsheets ...... 247 4.1 DB Cargo ...... 247 4.2 PKP Cargo ...... 251 4.3 Fret SNCF ...... 254 4.4 Lineas ...... 262 4.5 Mercitalia Rail ...... 265 4.6 SBB Cargo AG ...... 268 4.7 Rail Cargo Group AG ...... 271 4.8 Green Cargo...... 273 4.9 CD Cargo ...... 275 4.10 Hector Rail Holding ...... 277 4.11 ZSSK Cargo ...... 281 4.12 TCDD Tasimacilik ...... 283 4.13 Freightliner ...... 285 4.14 Germany ...... 288 4.15 Poland ...... 299 4.16 United Kingdom ...... 304 4.17 Luxemburg ...... 307 4.18 Switzerland ...... 308 4.19 France ...... 311 4.20 Austria ...... 314 4.21 Czech Republic ...... 320 4.22 Slovakia ...... 324 4.23 Hungary ...... 327 4.24 Romania ...... 331 4.25 Italy ...... 333 4.26 Sweden ...... 338 4.27 Norway ...... 339 4.28 Netherlands ...... 340 4.29 Latvia ...... 341 4.30 Lithuania ...... 342 4.31 Estonia ...... 343 4.32 Spain ...... 344

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DATA ANNEX IN EXCEL FORMAT

DATA SHEETS OVERVIEW

1 Market Overview 1.1 Market Overview (Pivot) 1.2 Network Length (Pivot) 1.3 Market Volume (Pivot) 1.4 World Market Overview (Data) 1.5 Network Length (Data) 1.6 Market Volume (Data)

2 Transport Performance 2.1 Transport Performance (Pivot) 2.2 Transport Destination (Pivot) 2.3 Transport Goods (Pivot) 2.4 Transport Performance (Data) 2.5 Transport Destination (Data) 2.6 Transport Goods (Data)

3 Operators and Rolling Stock 3.1 Incumbents Market Shares (Pivot) 3.2 Operator Market Shares (Pivot) 3.3 Rail Freight Rolling Stock (Pivot) 3.4 Incumbent Maerlet Shares (Data) 3.5 Operator Market Shares (Data) 3.6 Rail Freight Rolling Stock (Data)

4 Additional Tables 4.1 Company Information 4.2 Additional Figures

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2 Rail Freight Market in Europe

2.1 Summary

Rail infrastructure [km] 260,000 Proportion of electrified tracks [%] 52 Modal share rail [%]A 17 Market volume for rail freight transport XXXXX [EUR million] Transport volume [million t] XXXX Transport performance [billion tkm] XXX Expected tkm growth [2017-22 p.a., %] XX Average proportion of international rail XX freight transport [% of tkm] Incumbent’s market share [% of tkm] 60 A 2016 © SCI Verkehr, 2019

Figure 1: Overview of the Rail Freight Market in Europe

The European rail freight market has been growing significantly since 2012, reaching XXX bn tkm in 2017. In 2018 the transport performance is expected to exceed pre-crisis levels. Besides the positive economic development, restructuring processes of operators and infrastructure investments have helped this development.

In 2017 the economic growth accelerated to 2.3%, its strongest performance since 2007. Robust demand for European products worldwide supports European exporters and low interests as well as decreasing unemployment rates stimulate the economy. In 2019, the IMF stated that worldwide growth will slow down and economic growth in Europe is expected to slow down from XX% in 2018 to 1.6% in 2019, as a result of global trade wars and expected monetary policy measures in China.

The decrease of the incumbent’s market share stopped for the first time in 2017, at 60%. Among others, PKP Cargo, Lineas, Rail Cargo Austria and Mercitalia managed to increase transport performance and PKP Cargo returned to profitability.

The rail freight transport performance in Europe is expected grow at an average CAGR of XX% up to 2022.

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Development of rail freight transport performance in Europe 2007-2022 [bn tkm] 600 CAGR 2017-2022: XX% p.a.

550 XXX XXX XXX XXX 500 XXX XXX XXX XXX XXX XXX XXX 450 XXX XXX XXX 400 XXX 350

300 2007 2009 2011 2013 2015 2017 2019 2021

Source: Eurstat 2018 SCI Verkehr, 2019

Figure 2: Rail freight transport performance development in Europe*

Germany is the largest rail freight market. More than a quarter of the European rail freight transport performance (tkm) is generated in this country (XX%). The second largest market is Poland with 12% market share, followed by France (XX%), Austria (5%) and Italy (XX%). The five biggest markets account for over XX% of the European rail freight market. Apart from the UK, the largest rail freight countries could increase the rail freight performance again after the financial crisis. In 2015, the German rail freight market recovered to pre-crisis levels and transport performance rose significantly between 2014 and 2017 due to an increase in the transport performance of smaller operators . The rail freight transport performance of Poland and Austria recovered to pre-crisis levels in 2017. Due to infrastructure problems rail freight transport performance in France improved only gradually. In the UK, the doubling of the carbon surcharge (in 2015) and the following shut-down of many coal-fired power units caused a decrease in rail freight transport performance even below 2009-levels.

[…]

2.2 Rail freight transport performance and economic development

[…]

GDP development

Between 2012 and 2017 the economy in Europe has been growing constantly at an average rate of XX% p.a. In 2017, economic growth accelerated to 2.3%, its strongest performance since 2007, however economic growth slowed down in 2018. Considering the period 2012 to 2017, the highest growth rates have been recognised in Turkey, Romania and Poland, followed by the Baltic states, Hungary, Slovakia, Sweden, the Czech Republic, Bulgaria and the UK. The remaining countries have experienced moderate economic growth. Finland and Italy recorded the lowest growth rates of XX% and XX% p.a. between 2012 and 2017.

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Germany and France, the two largest economies in the euro zone, grew at XX% and XX% p.a. between 2012 and 2017.

The reasons for the overall positive development were manifold. The most important ones were: − Worldwide growth supported the European exporters, as there was strong demand for European products − The monetary policy of the European Central Bank (ECB) – in particular the low interest rates – have made borrowing cheap and fostered investments. This led to strong corporate profitability and an increased confidence in the economy, in general. − Falling unemployment and rising wages following those developments have also led to increased consumer spending.

Development of GDP in selected European countries Development of GDP in selected European countries [CAGR 2012-17, p.a.] [CAGR 2017-22, p.a.]

3% or more 3% or more < 3% < 3% < 2% < 2% < 1% < 1% Less than 0% Less than 0%

Sources: IMF 2018 © SCI Verkehr, 2019 Sources: IMF 2018 © SCI Verkehr, 2019 Figure 3: GDP development in Europe in 2012-17 and prognosis for 2017-2022

For 2018 it is expected that the economy in Europe grew by 1.8%. The forecast has been lowered several times from XX% in May 2018, due to the trade tensions with the United States, Brexit and rising oil prices, which are expected to increase inflation. Of the Western European countries, Germany and France are expected to show lower growth rates in 2018 and 2019 than in 2017 (XX% p.a. for Germany and 1.7% p.a. for France). The IMF States that weak industrial production following the revised auto emission standards and weaker foreign demand will impact the German economy. Italy is expected to remain one of the countries with the lowest GDP growth rate, due to higher borrowing costs and weak domestic demand. The forecast for the UK is significantly affected by the decision to leave the European Union in 2016. So far the Brexit talks have not concluded in a specific Brexit scenario, yet the mere uncertainty about outcome affects the economy. Businesses suspend investments and net export growth is expected to decline marginally.

[…]

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Rail freight transport performance

The largest share in the rail freight transportation market holds Germany, with XX% of all tkm performed. The second largest market is Poland with XX% market share, followed by France X%. The five biggest markets account for over XX% of the European rail freight market.

Top countries by market volume in 2017 in Europe

Rest of XXXEuropeX 16% LithuaniaXXXXX 2% Germany Belgium XXXXX 34% 2% XX%X XXXSlovakiaXX 3% RomaniaXXXXX 3% Czech Republic XXX3%XX Sweden XXX4%XX Italy XXXX4%X Poland United Kingdom XXXXX 9% 4% XX%X Switzerland France XXXXX Austria 5% 8% XX6%%X XX%X Source: different sources, SCI estimation © SCI Verkehr, 2019 Figure 4: Share of selected countries in the European rail freight transport market (by market volume)

[…]

Between 2012 and 2017 the rail freight transport performance in Europe increased at a CAGR of XX% p.a. and the moderate growth was fostered by the strong economy in Europe and offset by individual effects in the country markets as well as by strong competition from road.

[…]

2.4 Transported goods

Considering the period of 2012-2017, the European transport performance (tkm) increased by XX% p.a. on average. The transport volume (t) in Europe increased at a CAGR of 0.4% p.a. The main driver for the positive development of the transport performance were intermodal, XXXX, XXXX and the others segment, partially offset by the negative development of coal, XXXX and XXXX transports. Intermodal transport is dominating the goods structure in Europe with a share of almost XX% of the goods transported. […] The goods structure in the rail freight markets differs significantly on the country level and is dependent on the importance of domestic industries, the sources of energy production and the geographical position/ ressources of each country.

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Share of rail freight transport goods; change of transport performance in Europe, 2012-2017 [%, bn. tkm]

500 120%

450 Others 21% XX% 100% XXXX 400 19% 17% 17% 19% XXXX XX% 350 5% 5% 5% 5% Steel 5% 7% XX% 80% 7% 8% 8% XXXX 300 8% XX% XX% XX% XX% Petroleum XX% XX% XXXX 250 60% 13% 12% 9% XX% 12% 10% Intermodal XX% 200 XX% XX% % XX% XX% XX% 40%% 150 XX% 12% XX% 12% 13% 13% % 100 % 20%% XX% XX% XX% XX% XX% 50 XX% % % 0 0% % 2012 2013 2014 2015 2016 2017 Source: Eurostat 2018 © SCI Verkehr GmbH, 2019 Figure 5: Transport goods structure in Europe

Intermodal

Germany clearly dominates the segment with a share of XX% in the intermodal segment in Europe in 2017, however its share has decreased compared to 2016 because of the growth of intermodal transport in smaller countries. France, the second largest country, held a significantly smaller share of 11% in 2017. The intermodal segment grew at a CAGR of XX% p.a. between 2012 and 2017. Consumer goods, machines and vehicles are the most important types of goods.

[…]

Coal

The largest share of coal transports in Europe is held by Poland: XXX of the European transport is carried across the Polish boarders or within Poland. Germany held a share of approximately 15% of the coal transports in Europe and Latvia of about XX%. The UK saw massive decrease in transport performance and of its share in coal transports by rail, after a carbon surcharge has been introduced in 2015, leading to the closure of many coal-fired power stations.

[…]

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3 Country markets

3.7 Austria

Rail infrastructure [km] XXXX Proportion of electrified tracks [%] 66 Modal share rail [%] XX A Market volume for rail freight transport ~XXXX [EUR million] Transport volume [million t] 101 Transport performance [billion tkm] XX Expected tkm growth [2017-22 p.a., %] XX Proportion of international rail freight 79 transport [% of tkm] Incumbent’s market share [% of tkm] XX A 2016 results © SCI Verkehr, 2019

Austria has a transport performance share of X% and a transport volume share of 6% in the overall European market. Rail Cargo Austria (RCA) is the market leader and incumbent with a market share of XX%. Transport performance in Austria increased by XX% p.a. in 2017 driven by intermodal transport.

SCI Verkehr expects rail transport performance growth of XX% p.a. up to 2022. Further developments in the Austrian rail freight market are:

- Incumbent RCA is expected to dominate the market, with a market share far above 50% up to 2022. In 2017, the incumbent realised a significant increase in transport performance of about XX% p.a., causing an increase in revenues and EBIT. RCA is one of the three leading operators in Europa that has been profitable in 2017. - Intermodal is the most important transport segment in Austria and most of transport is generated by the European ports. The segment grew at an above-average rate between 2012 and 2017 (CAGR XX% p.a.) and is expected to grow at a strong rate of XX% p.a. up to 2022. - The outlook for other important segments is also promising: Agriculture and ores are expected to grow at an annual CAGR of above 1.5% up to 2022. - The government of Austria supports rail freight strongly: Single-wagon transports, […]

© SCI Verkehr GmbH • www.sci.de • European Rail Freight Transport Market 2018 12 Extract

3.7.1 Development of basic parameters in Austria (indexation) [2007-2022]

Development of freight transport performance and GDP in Austria from 2007 to 2022 (indexation) 130

120

110

100

90

80 [Index 2007 =100] 2007 [Index 70 tkm: 100 = XX bn. GDP: 100 = EUR XXX bn. Modal Share: 100 = XX% 60

Forecast 50 |

GDP (Index) tkm (Index) Modal Share Rail (Index)

Source: Eurostat, SCI Verkehr Forecast © SCI Verkehr, 2019

Figure 6: The development of basic parameters in Austria

[…]

3.7.2 Transport lines/rail freight infrastructure

Hubs

St.Pölten Terminals for combined transport

Kapfenberg Main switching yards Wels

Wolfurt Rail Freight Corridors Madstein RFC 9: “Rhine-Danube“

Bludenz RFC 5: “Baltic-Adriatic“ RFC 3: “Scandinavian- Mediterranean“ RFC 7: “Orient/ East-Med“

© SCI Verkehr, 2019 Figure 7: Transport lines/rail freight infrastructure in Austria

Rail infrastructure in Austria is well-developed. The country is among the frontrunners in Europe as measured by railway infrastructure investments per capita. The most important projects for the Austrian rail infrastructure are the , the Semmering Base Tunnel and the , which aim at reducing bottlenecks and form part of the rail freight corridors passing through Austria. These projects are part of the Target Network 2025+ (Zielnetz 2025+) programme in cooperation with Austrian state railway ÖBB, which aims to further expand and

© SCI Verkehr GmbH • www.sci.de • European Rail Freight Transport Market 2018 13 Extract

develop the railway infrastructure. The Brenner Base Tunnel, which is 64 km long and connects Germany and Italy, is the longest underground rail link in the world if the Innsbruck bypass is taken into account. The Koralm high-speed rail tunnel will be 33 km long, will cost approximately USD 6 billion and is expected to cut travel time between Graz and Klagenfurt by two hours, from three hours to one hour. Finally, the Semmering Base Tunnel, 27 km in length and representing a USD 4.4 billion investment, will connect and Mürzzuschlag, and was started in 2014 after 30 years of legal disputes. It is expected to be completed in 2024.

[…]

3.7.5 Rail freight transport operators

RCA remains the market leader for rail logistics in Austria: in 2017, the company held a market share of XX% of rail freight performance. In 2016, its market share was at XX%. XX competitors are active in the Austrian rail freight market at the moment. With regard to block trains, private rail freight operators have a market share of almost XXXX of the Austrian market. However, in single-wagon transport incumbent RCA is almost unrivalled.

[…]

Incumbent

RCA remains the market leader in rail logistics in Austria and Central and Southern Europe. The company held a market share of XX% in 2017 and realised revenues of EUR XX billion and an EBIT of EUR XX million (group results) in 2017. As the company makes almost half of its revenues abroad, the group’s overall revenues exceed the market volume for Austria significantly.

[…]

Competitors

Around XX competitors are currently active in the market, most of them German or Austrian companies. The largest competitors to RCA are Lokomotion, CargoServ, LTE and TX Logistik, but none of them holds a market share larger than 5%. The competitors to the incumbent are very similar in size and goods segments transported and only CargoServ is specialised (with a focus on ores, a goods segment that most of the competitors do not serve). Lokomotion Gesellschaft für Schienentraktion mbH, the largest competitor to RCA is a Germany railway company, which operates in particular in Alpine transit via the and the Railway between Germany and Italy or Slovenia. […] TX Logistik, a subsidiary of Mercitalia Rail, the Italian state-owned operator, based in Cologne, operates rail freight services on the North-South corridor. […]

Competitive development

RCA dominates the market, with a market share of XXXX of all tkm performed. Almost all major competitors to the incumbent are national carriers, which play a minor role in the Austrian rail freight market, except for TX Logistik, which has a strong presence along the Rhine-Alpine and Scandinavian- Mediterranean rail freight corridors. Competition between the operators primarily exists on the Brenner line and on the Westbahn line between Vienna and Salzburg. On these corridors, competitors of RCA operate XX% and XX% of rail freight respectively.

[…]

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4 Company Factsheets

[…]

4.9 CD Cargo

CD Cargo Overview

Headquarters

CD Cargo, a. s. Regional presence: Jankovcova 1569/2c 170 00 Prague 7 – Holesovice T: +420 972 242 255

www.cdcargo.cz

Management − Ivan Bednárik (Chair of the Board of Directors) − Zdenek Skvaril (Member of the Board of Directors, Operations) − Bohumil Rampula (Member of the Board of Directors, Sales) − Martin Simek (CFO) − Zdenek Meidl (Department Management of Railway Vehicles) − Mojmír Bakalár (HR)

Corporate form Joint-stock company Current shareholders (2017) Ceske Drahy a.s. (100%) Auto Terminal Nymburk, s.r.o. (100%), CD Logistics a.s. (78%), Terminal Brno, a.s. (66,93%), CD-DUSS Terminál, a.s. (51%), RAILLEX, a.s. (50%), Ostravská Shareholdings dopravní spolecnost, a.s. (50%), BOHEMIAKOMBI, spol. s r.o. (30%), Ostravská dopr. spolecnost - Cargo, a.s. (20%) Rail freight transport, XXXXX, single-wagon services, XXXXXX, road freight Business activities rail freight transport/logistics Operates rail freight transport in CZ-SK-PL-AT-DE Goods transported XXX, XXX, XXX, XXX, XXX, XXX, XXX, XXX, XXX, XXX Turnover Net profit Transport performance Year Employees [EUR mn] [EUR mn] [tkm mn] [t mn] 2015 7,249 394 XX XX,XXX 66.4 2016 6,978 XXX XX 11,365 XX.X 2017 X,XXX XXX XX XX,XXX XX.X

Company structure

© SCI Verkehr GmbH • www.sci.de • European Rail Freight Transport Market 2018 15 Extract

Company description Organisation and positioning CD Cargo is the largest rail freight company in the Czech Republic, and is also active internationally. In 2007, the company was created as a subsidiary of the Czech state railway CD. The company employs approximately 7,000 workers and provides rail freight services for transporting raw materials, products with high added value, containers, exceptional deliveries, as well as leasing of railway wagons, spur-lines and others. In 2017, the company operated 852 locomotives (68 leased) and ~26,000 freight wagons. It serves the steel, chemicals, automotive, engineering, forestry and retail industries. In 2017, in order to support its foreign expansion strategy and the brand of the group, the subsidiaries CD Generalvertretung GmbH, Koleje Czeskie Sp. z o.o. and Generálne zastúpenie CD Cargo, s.r.o. were renamed CD Cargo Germany GmbH, CD Cargo Poland Sp. z o.o. CD and Cargo Slovakia, s.r.o. respectively. Furthermore the government of the Czech Republic plans to privatize CD Cargo. The freight subsidiary is essential for the financial performance of CD, however the government expects that the privatization and following private investments will be necessary to buy new locomotives and freight wagons and to stay competitive in the future. Current developments and outlook In the first half of 2018 CD Cargo reported a profit of EUR 14 million, while CD has recognized a loss of EUR 15 million in the same period. The company had a market share of 68.5% in 2017 and transported 66,1 million t freight. In 2017, the company increased its revenues compared to 2016, but profit decreased due to an increase in traction and fuel consumption cost. The tonnage transported also decreased due to strong frosts at the beginning of the year (fuel substrates froze in the wagons) and a shortening of transport distances for some commodities, according to CD Cargo. With regard to iron ore, services have has changed: transport from Omar ceased and iron ore has been transported with cooperation from CD Cargo Poland at the Belarusian-Polish sites. Transport performance in Poland increased as soon as 2016, while the domestic market declined by 8%. The exports from the Czech Republic increased by 11%. Steel transport performance was impacted in 2017 by the replacement of domestic products with foreign ones, which have been transported by road e.g. from Italy. In the construction segment, new customers were targeted with new services named Dracula and Maria Theresa. Limestone transport from Beroun to German power plants was launched at the end of 2017 In the coal segment in 2017, negative factors were the failures and power outtages, the conversion of heating plants to gas, the frozen fuel in the wagons and a lack of wagons to meet transportation needs. CD Cargo has continously lost services transporting coke from Romania, and black coal from Poland to Slovakia. In 2017, investment activities amounted to EUR 53.2 million (CZK 1.4 billion). EUR 41.8 million (CZK 1.1 billion) went into the renovation and modernisation of railway vehicles. © SCI Verkehr GmbH

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© SCI Verkehr GmbH • www.sci.de • European Rail Freight Transport Market 2018 16

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