MSC’s rumoured partial takeover of Spain’s national rail freight operation, Renfe, appears to be inching closer with a reported non-binding agreement being inked.
It was previously that the shipping giant was eyeing the acquisition of a 50% stake in Renfe Group’s loss-making freight operation, Renfe Mercancías, with Maersk and CMA CGM shortlisted as part of an international tender.
However, reports just before Christmas suggested a revised plan, and news this morning of the agreement between MSC and Renfe that would see each hold 50% of a joint-venture.
According to Spanish media, the JV would take on the bulk of the freight services, with Renfe Mercancías expected to maintain a small operation with a reduced fleet to support “strategic transport needs”.
How the venture would work has yet to be announced, but when MSC initially considered the acquisition, its logistics subsidiary, Medlog, was expected to take charge. And, if reports are true, Medlog would oversee operations via its rail freight arm, Medway, with most of the Renfe workforce expected to be kept on.
That would indicate a shift in Renfe’s statement in September 2023 that the freight division’s 945 staff were “guaranteed” to keep their jobs and would be able to choose to work within the new entity or elsewhere within Renfe Group.
But this did not dilute the concerns of unions, which claimed any deal could lead to job losses, and the the arrival of Medlog at Renfe Mercancías amounted to “privatisation in disguise” of Spain’s biggest rail freight operator.