Deals over redundancies and recapitalisation sees major restructuring complete a key stage said CEO.
Following negotiations with the unions in December 2016, ECR had originally expected to make 300 staff redundant under its restructuring plan but following some recent contract wins, it has said that it will now be shedding less than 130 staff, and 100 of those personnel have already been found employment at companies outside the DB group, mainly at Ouest Rail and SNCF Mobilités.
Recapitalisation bears fruit
On June 30 this year, the DB Cargo board approved a €150 million recapitalisation of ECR, which the latter says will enable it to pursue its recovery strategy. The companies said this is based on the principles of ‘simplification, responsibility and quality’. This strategy is stemming the tide of losses, according to ECR, which is now expecting to break even by the end of 2018, following losses of more than €25 million in 2016.
“Through this recapitalisation, the highest in ECR’s history, we are confirming our support to our subsidiary to help it remain the private freight leader on the French market,” said Jurgen Wilder, CEO of DB Cargo.
Gottfried Eymer, CEO of Euro Cargo Rail added: “Despite a still very difficult context for rail freight, ECR has succeeded in completing major recovery steps as scheduled.”