State-held company CFR Marfa (a freight operator), which is expected to complete its privatisation strategy in around three months, is worth somewhere between one and three billion euros, according to market sources.
"One billion euros is an attainable objective," stated Ludovic Orban (Minister of Transport), whereas other players on the market, such as Grup Feroviar Roman (Romanian Railway Group) and Servtrans, put the company's value at a much higher level.
According to previous statements made by George Buruiana, general manager of the private freight operator Servtrans, the value of CFR Marfa stands at around two billion euros. Ion Garoseanu, vice-president of Grup Feroviar Roman (the largest private freight operator on the market) says CFR Marfa is worth over one billion euros.
"CFR Marfa could be worth 1.5 to 2 billion euros, but it depends in part on the privatisation strategy," said Garoseanu.
Recently, the Hungarian freight operator MAV Cargo was privatised, in a deal that saw the state collect almost 400 million euros. However, according to market representatives, CFR Marfa turnover is more than twice as high as the Hungarian company. Whereas MAV Cargo's rolling stock consists of over 13,000 trucks and no locomotives, CFR Marfa holds 51,000 trucks and almost 1,000 locomotives. CFR Marfa has a share capital of 205.16 million RON, which is entirely held by the state, through the Ministry of Transport, and posted turnover worth 505 million euros last year, according to the Ministry of Finance. The state-held operator transported 5.2 million tonnes of goods last year, which included 1.5 million tonnes internationally.
The Ministry of Transport hired a consortium made up of Deloitte Romania and law firm Bostina & Asociatii (Bostina & Partners) as consultants for the company's privatisation strategy, with the value of the contract standing at 56,000 euros plus VAT. After the privatisation strategy is completed, a draft Government decision will be devised and, when approved, a new tender will be organised to select the privatisation consultant and the tender book will be put together.
CFR Marfa has forged an alliance with one of its competitors in the private sector, Grup Feroviar Roman, and a bank, Raiffeisen Bank, and has created a company which will rent railway trucks and locomotives, after the rolling stock is repaired and upgraded. Overall, a partnership between a state-held company and a private rival is quite rare.
"The company will start to operate after the approval of the Competition Council. In addition, we contributed 6,400 trucks, worth around 48 million euros," said Liviu Bobar, manager of CFR Marfa. Therefore, the price of a truck stands at around 7,500 euros, whilst a new truck can cost somewhere between 40,000 euros and 80,000 euros.
CFR Marfa holds around 42% in the company, while Raiffeisen and Grup Feroviar Romam have contributed a total of 66 million euros and hold the remaining shares.
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