Suttons takes Tanktainer

LET’S SWAP TANKS

M&A • SUTTONS IS EXPANDING ITS GLOBAL TANK CONTAINER OPERATION, FOLLOWING AN AGREEMENT TO ACQUIRE VTG TANKTAINER’S INTERNATIONAL ACTIVITIES

SUTTONS GROUP IS planning to propel itself into the top ten list of tank container operators, having signed an agreement with VTG to acquire the international activities of its subsidiary VTG Tanktainer. Suttons International will, through the deal, further increase its capability to serve its customers and extend its global reach.

John Sutton, managing director of Suttons International and CEO of Suttons Group, says: “This acquisition will strengthen our geographical scale and give us a strong presence in new markets to better serve our customers, as well as provide greater opportunities for all staff. It will firmly establish our business amongst the top 10 global tank container operators and will be integrated into our existing, robust management structure.”

Suttons will take control of the acquired business in the coming months. In the interim, VTG will continue to manage the tank containers, personnel and customer contracts. The deal includes the VTG joint venture with Mission Line in Brazil but not the COSCO VTG Tanktainer joint venture in China, although the three firms will be working to develop a closer partnership in that market.

For VTG AG, the sale of its overseas activities will result in a strategic realignment of VTG Tanktainer business unit, with a focus on the global leasing of tank containers, flanked by integrated logistical services. “Our broad spectrum of fleet offerings, our extensive logistical network and the expertise embodied by VTG Tanktainer – especially in the transportation of chemicals and hazard goods – lay the ideal foundation for a global footprint built around focused logistical services in Europe and Eurasia,” says Klaus Wessing, head of the VTG Tanktainer Business Unit.

BACK TO BUSINESS Selling off its international tank container business also swings VTG’s core activities back towards leasing and the rail sector, where it has the largest privately owned fleet in Europe. “This sale refocuses and aligns our asset business with the strategy of the whole VTG Group,” says Oksana Janssen, COO Eurasia & Far East at VTG AG. “It also ensures the operating business meets our long-term profitability expectations both during and beyond the coronavirus crisis.”

In particular, VTG has lately been expanding its rail activities in eastern Europe. In November it announced the establishment of a new company in Bulgaria, which is a key transit point for traffic heading for Greece, Turkey and adjacent countries. VTG Rail Logistics Bulgaria is a full-service rail forwarder with an international reach and, integrated into VTG’s existing pan-European network, will allow the group to optimise and harmonise national and cross-border leasing and rail logistics activities in the country.

“VTG Rail Logistics boasts exceptional expertise in rail transport and multimodal logistics, offering a full spectrum of services across the entire transport chain,” says Stelios Archontakis, managing director of VTG Rail Logistics Bulgaria and VTG Rail Logistics Hellas. “In the future, we will be able to offer reliable transport solutions and further develop the market in Bulgaria and the adjacent regions.”

VTG Rail Russia, meanwhile, is making a significant addition to its fleet with 250 platforms for the transport of containers and tank containers from Transportnoye Mashinostroyeniye (Transmash). “We have found a credible strategic partner represented by Transmash, who guarantees development of our company even in the current volatile market conditions,” says Olga Yakimova, general director of VTG Rail Russia. “We decided to replenish our fleet with the railcars produced by Transmash due to their optimal ratio of price and quality. We hope to improve our cooperation both in Russia and on the international level.” www.suttonsgroup.com www.vtg.com

THE FUTURE OF RAIL? SAFE WITH US.

At Fort Vale, we’ve never felt at ease fulfilling ‘existing requirements’ - we prefer to think years ahead, so that when you buy our equipment, you know it will still be viable in 10 or even 20 years time. You could call it future-proofing - we just call it common sense. Available from 2022, the Fort Vale LPG Rail Product Range is made to the highest standards, ensuring quality, safety and security well into the 21st century. Manufactured in stainless steel (anything less increases the likelihood of corrosion) ensures longevity of equipment whilst minimising down time and M&R costs. The Y-valves have a lockable handle function for security and safety, whilst they are bellows operated and are rated to a MAWP of 30Bar - higher than any others on the market (see what we mean about future-proofing?). Safety, reliability and significantly increased flow rates - all with global support from Fort Vale. Not every company can do this. Not every company is Fort Vale.