Servtrans budgets 50m-euro investments

Servtrans rail operator is set to invest 50m euros this year in acquiring rail equipment, carriages and modernising locomotives in its fleet. Approximately 75% of the capital for investments will be secured from banking loans, with the rest being self-funded. Servtrans is controlled by businessman Cristian Burci, through International Railway Systems, which owns rail equipment producers Romvag Caracal, Astra Vagoane Arad and Meva Mehedinti. Before entering the railway carriage business, Burci founded the Graffiti advertising agency and created the media group around Prima TV, which was sold to Sweden’s SBS. Servtrans is among Romania’s top three rail transport operators, holding 6% of the domestic rail freight transport market, according to the data provided by the company. George Buruiana, general manager of Servtrans, believes that within the next five years regional players will dominate the Romanian and Eastern European railway market, with Romania playing a significant role. In 2006, Servtrans posted a turnover worth 27m euros and this year expects to generate 10% higher results.