Bulgaria Railways Company, Germany's Deutsche Bahn Eye JV

The Bulgarian state railways company BDZ hopes to tap the experience and financial potential of the German company. Photo by BGNES

Representatives of German national rail operator Deutsche Bahn are expected to come to Bulgaria on February 15 to set up a joint venture company for cargo transport with the Bulgarian state railways company BDZ, according to reports.

The visit was initially scheduled for last month, but was eventually postponed.

A joint venture with the German company was first discussed in late 2009, but the form of partnership is yet to be agreed. One option is for a logistic subsidiary of Deutsche Bahn to apply for a railway operator license. According to Pari daily's sources, that will be DB Schenker.

The Bulgarian state railways company hopes to tap the experience and financial potential of the German company in a bid to revive its cargo transport business, which has been heavily hit by the crisis and the winding up of operations at Kremikovtzi steel mill.

It is still unclear whether the German company will accept the offer of the Bulgarian side, which counts primarily on the strategic location of the country.

The German and Bulgarian railways companies signed in 2006 a memorandum under which Deutsche Bahn consults BDZ with the goal of turning it into a profitable enterprise.

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