Freightliner Intermodal forsale

[Nicholas Lewis]

Its being reported in Railfreight.com that the intermodal arm is being looked over by potential acquirers

https://www.railfreight.com/intermodal/2025/01/16/uk-freightliner-intermodal-for-sale/

Freightliner could be about to parcel up its intermodal rail business, in the face of commercial interest. Tim Shoveller, appointed chief executive of the group less than two years ago, has broken the news to staff in a personal message. He has told staff that there is commercial interest in its intermodal rail freight business.

A sale isn't yet on the blocks but by disclosing it to staff suggest they are prepared to sell it for the right price. This will leave FLHH behind and would GBRf take an interest.

 

[zwk500]

They were only bought out by the current owners relatively recently, weren't they? (I say recently, it's probably some 5-7 years ago now!)

If GBRf did take an interest I could see the ORR or the Competition and Markets Authority sitting up rather suddenly. More likely is either one of the FOCs that currently does mainly odd ad-hoc jobs, or an international logistics firm looking to secure a UK distribution chain.

One massive question in this will be how attractive FLIM is to any prospective buyer - is the arm profitable, are the locos about to need replacing, the wagon fleet, the contracts for flows etc...

 

[bengley]

I believe the main interested party are Maritime.

 

[Taunton]

Freightliner could be about to parcel up its intermodal rail business, in the face of commercial interest. Tim Shoveller, appointed chief executive of the group less than two years ago, has broken the news to staff in a personal message. He has told staff that there is commercial interest in its intermodal rail freight business.

This sort of thing is normally driven by aggressive major shareholders wanting to get some money for themselves out of a piece of the business and then run, rather than any strategic plan for the organisation, so typically the Chief Exec is pushed into, rather than drives, the event.

"Intermodal" is in the UK context just containers, rather than the multiple approaches the USA manages, like Trailer On Flat car, which is where the expression originates. It is of course the origin of the Freightliner business from the 1960s, and its name, when the term Liner Trains was devised by Gerry Fiennes (and approved by Beeching) for the first ISO containers by rail in dedicated nonstop trains.

 

[DelW]

They were only bought out by the current owners relatively recently, weren't they? (I say recently, it's probably some 5-7 years ago now!)

I thought they'd recently started repainting the loco fleet into a G&W style orange livery (from the previous green and yellow), which suggests this is a very recent change of direction, possibly driven by external pressures.

 

[zwk500]

I thought they'd recently started repainting the loco fleet into a G&W style orange livery (from the previous green and yellow), which suggests this is a very recent change of direction, possibly driven by external pressures.

Yes, G&WRR purchased 96% of Freightliner Group in 2015, then the last 4% in 2020

 

[swt_passenger]

I believe the main interested party are Maritime.

That will save renaming the main Southampton terminal then…

 

[The Planner]

Yes, G&WRR purchased 96% of Freightliner Group in 2015, then the last 4% in 2020

Their email addresses have been changing back to freightliner recently from what I have seen.

 

[zwk500]

Their email addresses have been changing back to freightliner recently from what I have seen.

ah that's interesting. Are the heavy haul side also changing back?

 

[MarkyT]

"Intermodal" is in the UK context just containers, rather than the multiple approaches the USA manages, like Trailer On Flat car, which is where the expression originates.

That's down to loading gauge in UK. There have been efforts to carry trailers on special spine wagons and similar here, but the trend has more recently been international maritime containers and domestic swap bodies, which both avoid carrying the road running gear around on the train. Mainland Europe can exploit a larger loading gauge to carry trailers, commonly on 'rolling road' services through the Alps where the tractor units usually accompany their trailers, but elsewhere the container and swap body are also becoming dominant. Nowhere in Europe is capable of hosting the massive double stack container trains that run in N America today.

It is of course the origin of the Freightliner business from the 1960s, and its name, when the term Liner Trains was devised by Gerry Fiennes (and approved by Beeching) for the first ISO containers by rail in dedicated nonstop trains.

I think they imagined a vibrant domestic container sector that didn't really take off at the time. FL ended up concentrating almost exclusively on deep sea business for many years.

 

[Taunton]

Nowhere in Europe is capable of hosting the massive double stack container trains that run in N America today.

The UK rail system has suffered from progressive advance of the "standard" dimensions of containers, which started off at 8'0" high, then became 8'6", which needed modification to wagons and some infrastructure, then when that was done 9'0" came along, and now it's 9'6". The road industry has absorbed this much more straightforwardly than rail, with lower lorry decks and smaller wheels.

Double Stack in the USA is very impressive and efficient, but has killed the market for electrification, as the onetime generous headroom structure gauge there has been fully absorbed by them.

Back to Freightliner, and their ownership by G&W is just an intermediate stage, as they in turn are principally owned by Brookfield, an international equity investment organisation who buy and sell companies as commodities.

 

[MarkyT]

Double Stack in the USA is very impressive and efficient, but has killed the market for electrification, as the onetime generous headroom structure gauge there has been fully absorbed by them.

India is managing double stack under wires on some routes today, but only after huge investment in upgrades and new lines.

Back to Freightliner, and their ownership by G&W is just an intermediate stage, as they in turn are principally owned by Brookfield, an international equity investment organisation who buy and sell companies as commodities.

And often break them up as necessary to achieve maximum return. If this deal goes through I wonder what it holds for the non-IM heavy haul business that remains with FL.

 

[The Planner]

ah that's interesting. Are the heavy haul side also changing back?

Across the board from what I have seen.

 

[43096]

Across the board from what I have seen.

That will be because Brookfield/GIC separated the G&W and Freightliner businesses last year. Ultimate ownership of both businesses hasn’t changed.

 

[Trainbike46]

Is Freightliner intermodal the whole Freightliner business in the UK, or are there other units that aren't for sale?

 

[Adrian1980uk]

It's an odd scenario really, where's the future growth in traffic predicted to come from heavy haul is declining (coal etc) so I would have thought a pivot to intermodal would have been the business to be in not getting out of it

 

[class 9]

It's an odd scenario really, where's the future growth in traffic predicted to come from heavy haul is declining (coal etc) so I would have thought a pivot to intermodal would have been the business to be in not getting out of it

It is indeed, I read an article a while back, can't remember where, but it was saying G&W were looking at getting out of intermodal due to market volatility & small profit margins, I think it was mainly about the American Market, but they maybe thinking the same in the UK.

 

[Freightmaster]

India is managing double stack under wires on some routes...

Impressive...

(video shows two double-stack, electric-hauled freight services passing at a station in India)

 

[MR Grunter]

Last I heard, DP world had been a major interested party. Given that they have just secured huge work off of Felixstowe, now into London Gateway and are in the process of installing another rail terminal ( also recently put 3 new berths in), I wouldn't be surprised if they were interested in this work. They also run Southampton port so could make sense.

Who knows! ‍

 

[geordieblue]

It's an odd scenario really, where's the future growth in traffic predicted to come from heavy haul is declining (coal etc) so I would have thought a pivot to intermodal would have been the business to be in not getting out of it

Heavy haul now deals with a lot of aggregates / building material so isn’t necessarily a declining sector. Indeed potentially the opposite.

 

[xotGD]

So Freightliner will no longer be operating freightliners.

Too confusing.

 

[HSTEd]

It's an odd scenario really, where's the future growth in traffic predicted to come from heavy haul is declining (coal etc) so I would have thought a pivot to intermodal would have been the business to be in not getting out of it

You could easily posit enormous growth in aggregates and biomass, the latter especially if the government follows through on the oft proposed BECCS programme (biomass energy with carbon capture and storage). I doubt the latter will happen, but aggregates is probably the biggest growth sector these days.

 

[xotGD]

You could easily posit enormous growth in aggregates and biomass, the latter especially if the government follows through on the oft proposed BECCS programme (biomass energy with carbon capture and storage). I doubt the latter will happen, but aggregates is probably the biggest growth sector these days.

Retrofitting carbon capture at Drax and Lynemouth wouldn't see growth in biomass traffic. It would though extend the life of those plants meaning that the flows would not stop.

I am not aware of any plans for new-build BECCS plants at comparable scale with rail deliveries of fuel.

 

[Nicholas Lewis]

You could easily posit enormous growth in aggregates and biomass, the latter especially if the government follows through on the oft proposed BECCS programme (biomass energy with carbon capture and storage). I doubt the latter will happen, but aggregates is probably the biggest growth sector these days.

Aggregates linked to performance of economy though which is looking fragile at the moment

 

[Wavertreelad]

I believe the main interested party are Maritime.

If that is the case, then that will mean that effectively Freightliner would be owned by Medlog, which is a wholly owned subsidiary of MSC. Given that when Medlog purchased Maritime Transport last September it became the owner of the UK's large container road haulier and prime haulier for the likes of Cosco/OOCL, CMA CGM and Hapag Lloyd as well as MSC, such a move could cause great difficulties for the shipping lines tied to deals with Freightliner.. https://www.medlog.com/en

 

[JordR]

How many locomotives of which classes are used by the intermodal part? Are there major contracts or routes?

 

[Hirn]

That's down to loading gauge in UK. There have been efforts to carry trailers on special spine wagons and similar here, but the trend has more recently been international maritime containers and domestic swap bodies, which both avoid carrying the road running gear around on the train. Mainland Europe can exploit a larger loading gauge to carry trailers, commonly on 'rolling road' services through the Alps where the tractor units usually accompany their trailers, but elsewhere the container and swap body are also becoming dominant. Nowhere in Europe is capable of hosting the massive double stack container trains that run in N America today.

I think they imagined a vibrant domestic container sector that didn't really take off at the time. FL ended up concentrating almost exclusively on deep sea business for many years.

Wasn't the "Iron Rhine" from Rotterdam Rhurwards made capable for double stack containers?

It seemed to have the necessary overhead clearance under 25kv and interesting pantographs on the locomotives to reach up to it.
But it seemed to get off to a slow start and I don't know know what became of the traffic let alone quite why thought it seemed the Bundesbahn had a thin patch after major work to bring the East German Railways up to scratch after reunification.

 

[JKF]

It's an odd scenario really, where's the future growth in traffic predicted to come from heavy haul is declining (coal etc) so I would have thought a pivot to intermodal would have been the business to be in not getting out of it

If it’s the business to be in at the moment, that might mean they can get a good price for it and it’s the right time to sell.

 

[MarkyT]

Wasn't the "Iron Rhine" from Rotterdam Rhurwards made capable for double stack containers?

It seemed to have the necessary overhead clearance under 25kv and interesting pantographs on the locomotives to reach up to it.
But it seemed to get off to a slow start and I don't know know what became of the traffic let alone quite why thought it seemed the Bundesbahn had a thin patch after major work to bring the East German Railways up to scratch after reunification.

New bridges & tunnels on the Betuweroute are capable, with vertical clearance of 6.15m, but OHLE has been placed at a more regular height for use by the majority of locos without the special high-reach pantographs. The extra clearance would be of limited use beyond terminals near the new line, as existing connecting routes to major destinations in Germany and further afield are not capable, so any double stack trains would need to be 'destacked' at the border. It's good the route has been futureproofed.

 

[furnessvale]

Impressive...

(video shows two double-stack, electric-hauled freight services passing at a station in India)

Doubly impressive in that they have sufficient clearance not to need well wagons.