Essinge Rail

SWEDEN: Finnish company Nurminen Logistics has agreed to acquire Swedish freight operator Essinge Rail, as part of its strategy to grow internationally and become a significant operator between the Nordic countries and elsewhere in Europe.

Essinge Rail offers routes to and from Germany, France, Spain, Italy, Austria and the Netherlands. It transports 4 500 wagons a year to the Nordic countries, mainly carrying consumer products, and operates its own terminal in Frövi.

Closing of the acquisition announced on November 11 is expected in December after regulatory approvals have been received. The debt-free purchase price of SKr150m will be paid in cash and shares.

Wider and versatile

Nurminen Logistics train (Photo Nurminen Logistics)

Nurminen said the purchase would improve its competitive position in Sweden and Finland, where it became a full-service freight operator with the acquisition of Estonian national operator Operail’s Finnish business in 2023.

It would also reduce its dependence on Finland’s foreign trade; Nurminen was a major player in the Russia – Finland market until the full-scale invasion of Ukraine in 2022.

‘The operating models of Essinge and Nurminen are very similar to each other and are among the most competitive players in the railway market in terms of capital use and personnel competence’, said Nurminen Logistics CEO Olli Pohjanvirta. ‘Together we will be able to offer our customers a wider network and more versatile rail transport with covered wagons and containers between the Nordic countries and continental Europe.’

Nurminen said there is a ‘genuine demand’ for new routes and low-emission logistics services, driven by increases in costs, growing environmental awareness and the need for security of supply in the face of ‘geopolitical tensions’.

Pohjanvirta said ’Nurminen already has well-functioning and scheduled rail traffic in Sweden from Haparanda, Umeå and Sundsvall to Göteborg, and now with the acquisition, this trunk traffic will be strengthened on new routes. This will open up even better opportunities for Finnish and Swedish companies to utilise low-emission rail transport.’

He said ‘our range of services to customers is growing and we offer a logistics pipeline from the Nordic countries all the way to Asia or America’.

Essinge Rail offers extensive Less-than-Container-Load services, enabling smaller importers and exporter to use rail even though they only need to transport one pallet or a few boxes.

‘We believe that the user base of the railway service will grow to thousands of companies in the next few years’, said Pohjanvirta.

‘Logistics is one of the most significant sources of emissions for companies, which [they] cannot fully control themselves. However, it is precisely reducing emissions in the supply chain that enables companies to multiply their positive climate impacts. In this work, we want to partner with our customers and help them transition to rail transport, which is the lowest-emission mode of freight transport.’