VTG prepares for the future

A NEW CHAPTER

RAIL • AFTER A SUCCESSFUL FIRST HALF YEAR, VTG IS TAKING STEPS TO POSITION ITSELF FOR THE FUTURE, WITH A NEW FOCUS ON INTERNATIONAL FULL-SERVICE RAILFREIGHT OPERATIONS

VTG AG HAS announced two significant changes at the top of its management, as part of a reorganisation that aims to improve customer service and enhance connectivity. With effect from 1 September, Sven Wellbrock, previously head of the Rail Europe business line, is now COO Europe and Chief Safety Officer. He will be responsible for all of VTG’s railcar leasing and logistical activities in Europe, as well as for safety matters. Oksana Janssen, previously head of the Rail Russia business line, is now COO Eurasia and Far East. Her responsibilities include railcar leasing business in the named regions, and she will also oversee tank container and project logistics activities. Ms Janssen’s mandate further covers the services provided by VTG along the New Silk Road.

Both Wellbrock and Janssen are now on the Executive Board, alongside CEO Dr Heiko Fischer and CFO Mark Stevenson. At the same time, Günter-Friedrich Maas, who has acted as chief logistics and safety officer since 2014, has left VTG to pursue other openings.

“This decision takes us a further important step toward VTG’s future orientation as a full-service international provider with a strong focus on rail,” says Dr Fischer. “The introduction of digitisation in 2017 and the acquisition of Nacco last year were important milestones for us. They have crucially expanded our portfolio of products and services. The next steps are now to ramp up our international customer care activities, boost our regional capabilities and provide integrated, digital solution offerings to our customers.”

POSITIVE DEVELOPMENTS With these appointments, VTG says it is both reinforcing the care it provides to international customers and stepping up its capabilities in the individual regions. Over the past few months, VTG has already been pressing ahead with the expansion of its portfolio in Asia, setting up new offices in Russia and Shanghai and establishing a commercial representation in Japan.

At the same time, dovetailing the railcar and logistical units under the mandate of the new Board members will facilitate customer care and consulting that is more comprehensive and complete. In particular, this move will enable the digitisation offensive launched two years ago to be anchored and connected across all operations to the same extent – translating into the implementation and marketing of corresponding customer solutions.

Those recent changes – especially the acquisition of the Nacco operation in 2018 – have had a significant impact on VTG’s first-half results, which saw revenues rise 16.6 per cent year-on-year to €599.3m and EBITDA jump by 42.2 per cent to €247.0m.

“In the first half of 2019, we were able to maintain the successful trajectory we have seen in recent quarters. Both revenue and EBITDA once again posted considerable gains,” says Dr Fischer. “In line with our forecast, VTG is benefiting from the successful acquisition and integration of Nacco. The numbers prove that this was the right decision for the future of our company. At the same time, constant high capacity utilisation across our fleet shows that the market trusts our products and services. Further confirmation comes from positive revenue development and the acquisition of new customer business by the logistics divisions.” HCB www.vtg.com

VTG PLANS TO RAMP UP ITS INTERNATIONAL