ABX sells French logistics business
ABX Logistics has sold the majority of its non-transport logistics business in France to smaller rival MGF Logistique. The move comes after a number of problematic years for the company in France, and despite a subsidy by its parent company, Belgian Railways (SNCB).
At the end of 2002 it became evident that three of ABX Logistics largest business units were struggling to cope with the difficult economic environment. The French, Dutch and German (road and contract logistics) operations were placed in a separate operating company to the rest of the better performing companies. The European Commission in January 2003 approved the loan of €123m to the turnaround companies to prevent wide scale job losses which otherwise would have been inevitable.
At the end of 2003, all of the group’s units which were profitable or which were on the mend were transferred to a new holding company, ABX Worldwide. However this did not include ABX France which remained under the direct supervision and responsibility of SNCB. The unit was expected to make a loss of around €70m for 2003, although this was significantly better than the €254m loss in 2002.
In total, the activities that have been sold to MGF generate revenues of €76m and employ 980 staff. This still leaves the majority of ABX Logistics’ French road, air and sea freight operations owned by SNCB.
MGF Logistique came to prominence last year when it took over the operations of TDG’s French subsidiary Fleche du Nord. This new acquisition demonstrates that the company is still ambitious to become one of the market leaders.
