Three Seas Fund agrees its first investment
The Three Seas Fund announces that it has made its first investment, acquiring a 100% interest in Cargounit , a key player in the CEE railway industry.
Cargounit is the largest private locomotive leasing company in Poland and the sixth largest company in the rolling stock industry in Europe. It is the market leader in Central Europe. The Cargounit rolling stock is used mainly by carriers from the petrochemical, chemical and metallurgical industries, as well as for intermodal transport and transport of aggregates. The company has a fleet of 175 locomotives, including 96 electric units and has been operating for 17 years.
Rail transportation plays an increasingly important role in the movement of goods in Europe - it facilitates trade and reduces the negative impact of transport on the environment, notably carbon dioxide emissions. The increase in the scale of Cargounit's operations, which will be funded as part of the Three Seas Fund’s ownership, will positively affect the development of cargo connections and improve trade links across the Three Seas region. The company plans to expand into neighbouring countries which will lead to the strengthening of north-south connectivity between the countries of the Three Seas Initiative.
The Three Seas Fund is a dedicated commercial fund targeting infrastructure investments in Central and Eastern Europe (‘CEE’). The Fund will invest in energy, transport and digital infrastructure in European Union (‘EU’) CEE member states which border the Baltic, Adriatic and Black Seas where the demand for long-term commercial investment into national infrastructure is among the highest in the EU.
From February 2020, the fund began full operational activity. Decisions on the selection of projects are made by an investment committee independent of investors. The Fund's investors appointed Amber Infrastructure to act as the investment advisor, responsible for originating investments, asset management and the process of attracting private investors to the fund.
“We are delighted to announce the Three Seas Fund investment in Cargounit. The asset base and customer relations of this company are a solid basis for expansion both in Poland and in neighboring countries. Increasing connections within the Three Seas countries, reducing transport costs and improving transport infrastructure are amongst the Fund's main objectives” - said Joe Philipsz, Senior Investment Director at Amber Infrastructure.
About Cargounit and its markets
The Polish rail freight market is the second largest in the EU, after Germany. It is forecasted to continue to develop thanks to the large-scale modernization program of railways in Poland and in the Three Seas region. The EU member states, including the countries of the Three Seas region, are obliged to increase the use of railways for freight and passenger transport. This will contribute to reducing carbon dioxide emissions.
Cargounit is the only locomotive leasing company in the Three Seas region that can offer a full line of locomotive types and has extensive plans to modernize its fleet in the coming years. The company will continue through expansion in the Three Seas region. The expansion of activities will improve connectivity in the region, including the efficiency of freight transport by rail.
This announcement does not constitute or form part of, and should not be construed as, an offer, invitation or inducement or recommendation to make an investment nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.
Implementing the Three Seas priority projects will be a decisive game changer in the sustainable development of our region and of Europe as a whole. The consistent increase in their number reveals the growing level of our ambitions, stated President Rumen Radev, who opened the Sixth Three Seas Initiative Summit today in the National Palace of Culture in Sofia.
The Three Seas Summit and Business Forum starts today in Sofia, Bulgaria. The event will be held on 8th and 9th of July, 2021. The host of the event – President of the Republic of Bulgaria Rumen Radev will welcome in Sofia Heads of state and government as well as high-level representatives of the 12 participating 3SI countries.