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Privatizations: Russian & US companies race for Greek TRAINOSE

The privatization of Greek Railways TRAINOSE is developing into a Russian-American race as companies from both countries have expressed interest on the sale of 100% of TRAINOSE . Hellenic Public Assets Development Fund, the Greek Privatization Fund (TAIPED) has set the deadline for bid submissions for December 3rd.

A delegation from WATCO company, a close partner of Hewlett Packard in the US, has reportedly visited Athens recently and had thorough contacts with TAIPED officials. WATCO seeks participation in the bid, “possibly using as a vehicle the  Romanian Group Feroviar Roma, that has qualified for the second phase.”

Another bidder with strong interest for TRAINOSE is the JSC Russian Railways in a joint venture with GEK-Terna.

The SNCF Participations SAS, a subsidiary of state railway company of France Societe Nationale des Chemins de Fer Francais (SNCF) had also expressed interest in the summer of 2013 and also qualified to the second phase, however Greek media report that the french bidder withdrew its interest.

Next to TRAINOSE, also EESSTY S.A. (“ROSCO”), the Hellenic Company for Rolling Stock Maintenance, is open for sale. the company that was established in 2013,  provides rolling stock maintenance and availability services to train operating companies.

According to Capital.gr, interest for ROSCO has been displayed by the joint venture of the JSC Russian Railways/GEK-TERNA and the French Alstom, in cooperation with the group Copelouzos, and the German Siemens.

The privatization of TRAINOSE is brought up by the Greek government in the omnibus bill containing the October prior actions required for Greece’s bailout payments to be released. The government has included a series of regulations aimed at facilitating the privatization of rail services company.

TRAINOSE will receive an annual subsidy of 50 million euros for the period from 2015 to 2020 – i.e. a total of 300 million – for the supply of a public service by operating unpopular rail routes. There is also a provision for writing off Trainose’s and railway carriage company Rosco’s debts to the state via parent company Hellenic Railways Organization (OSE) once the privatization is complete – with the consent of the European Commission.

The government wants to clear Trainose’s past debts so that it can be delivered to the chosen bidder unburdened.

TAIPED Press release on TRAISOE and ROSCO tender/qualified bidders, Oct 2013

PS nice privatization options: debts’ write-off, subsidies. Who will come up for these? Do not tell me “the taxpayers”…

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4 comments

  1. Giaourti Giaourtaki

    “Investors” will love coming strikes and enjoy awesome movements like DEN PLIRONO, haha

  2. This story of race for Trainose is simply ludicrous. I suspect it might have been KTG who reported this story,some years ago, as it was losing a million euros a day, with a very short track, that the then Minister of Transport made his famous statement in which he said, anyone who thought of taking a train should call him and he will put them in a taxi to save money!! Remember? P.S. Why would any corporation, with a responsibility to shareholders, invest in Greece at this point in time?? Enough less TRAINOSE??

    • Why even bother making your comment given your views, and why bother reading a greek website?

      Unless you work for an “investor” aka “carpetbagger”.
      Trying to drive down the price eh?

    • Giaourti Giaourtaki

      Highspeed trains for fast tourists that pay 10 times the normal price plus HP is connected to COSCO in Piraeus to bring their shit via Belgrad direction north and save time and transport costs