Groupe Eurotunnel acquires GBRf (Great Britain Rail Freight)

Groupe Eurotunnel has acquired the third largest British rail freight operator, GBRf, from international transporter FirstGroup plc.

Jacques Gounon, Chairman and Chief Executive of Eurotunnel, stated: “Eurotunnel has always been a major link between the UK and France. The acquisition of GBRf is a further expression of our commitment to the United Kingdom and of our confidence in the potential that it holds. Growing concerns about the environment and the increasing need for freight transport over both long and short distances mean that rail freight is a buoyant market”.

This acquisition, completed without any increase in debt, is in line with the Group’s development strategy which, confident that the sector will continue to expand, aims to develop a leading position in the European rail freight market in the future.

As a result of the complementarities between its French rail freight subsidiary, Europorte France, and GBRf in terms of geographic cover and customer type, Groupe Eurotunnel now has a high performance potential which will enable it to offer customers a complete service, especially across the Channel.

The rail freight market in the UK is one of the most developed in Europe, with annual growth between 1995 and 2008 averaging 4%. It has pioneered liberalisation since the introduction of competition in 1996.

Within this framework, GBRf was created by its current Managing Director, John Smith, who was rapidly able to impose the company as one of the most efficient in the sector.

GBRf is a profitable business employing 299 people and generating revenues of £56 million in 2009. The company is present in all rail freight markets: intermodal, bulk, infrastructure, etc. Its customer list is broad, diverse and international (Bombardier, British Gypsum, EDF Energy, DRAX, etc). Service quality, flexibility and customer focus are values common to both GBRf and Europorte.