Renfe is going to take a new leap abroad, this time by taking a significant stake in the small Czech operator Leo Express. The Spanish public company, which until now had opted for organic growth, has agreed to acquire a first 50% of the firm founded and managed by the Novotný family, as reported at the meeting of the board of directors this afternoon.
Young Leo Express transported 2.4 million travelers in 2019 and their income reached 40 million euros. The objective prior to the pandemic was to raise the turnover above 51 million euros.
The study of this acquisition comes from several months ago. Renfe hired in December the services of PwC to analyze inorganic growth opportunities abroad. Among other things, he has dedicated himself to carrying out the due dilligence of the aforementioned Leo Express.
The one that will be owned by Renfe in Eastern Europe had been exploring the possibility of incorporating a strategic partner for some time. The Spanish interest lies in its presence in Czech Republic, Slovakia and Poland. Leo Express claims to have a presence in a hundred cities in six countries. Its first concession was signed in 2012 and in addition to railway services it also operated in road passenger transport in Poland, Germany, Austria or Ukraine.
Renfe, for its part, has a presence in Saudi Arabia with the first high-speed train in the desert; it crosses the French border in alliance with SNCF and aims for CercanÃas lines in the neighboring country; has been awarded the shadow contract for the Mayan Train in Mexico, and is key in the design and operation of the private high-speed line in Texas (USA). Already in Eastern Europe, the Rail Baltica project is participating in the struggle to take over the shadow operation, a line that will cross Estonia, Latvia and Lithuania.
The operator dependent on the Ministry of Transport will have internationalization as one of its pillars in the future. In fact, expects 20% of its revenue to come from abroad in 2028.
Renfe expects 20% of its income to come from abroad in 2028
Purchase of 211 commuter trains
At the Renfe board meeting it has also been firm the award of the order for 211 commuter trains to Alstom y Stadler. The contract is divided into two lots: the first, awarded to Alstom Transporte, for the supply of 152 trains of 100 meters in length, for an amount of 1,447 million euros; and the second, awarded to Stadler Rail Valencia, for 24 trains of 100 meters in length, and 35 trains of 200 meters each, for an amount of 998 million.
These new trains will be used for service in the large suburban centers, especially Madrid and Barcelona. They have a minimum capacity of 900 seats each (20% more than the current Civia) and it is expected that they will reduce the time of getting off and on for passengers, through an advanced design with a minimum of 10 doors and larger lobbies.
Renfe’s Fleet Renewal Plan, activated in 2019, will involve the renewal of 50% of the CercanÃas and Media Distancia trains. The tenders have together exceeded 3.5 billion euros and are expected to generate around 52,000 new jobs.
