ECONOMY

Trainose gets 250-mln-euro boost ahead of privatization

The government has boosted the chances of railway service operator Trainose finding a strategic investor for its acquisition following a decision to endow it with 250 million euros in state subsidies for unprofitable routes over the next five years.

Besides the contract for 50 million euros per year to be signed, Trainose has a portfolio of notable real estate properties whose value could be as high as 110 million euros. Another attractive aspect of the rail operator is a contract it recently signed with China’s Cosco and Hewlett Packard for a rail link between the port of Ikonio in Piraeus an the main line network at the Thriasio Plain logistics hub in western Attica.

State privatization fund TAIPED has already invited interest for the sale of 100 percent of the company, with Cosco showing its initial interest. The Russian Railways company is also considering a bid, with sources saying it is in talks with a Greek construction company to form a consortium that will enter the Trainose tender.

There has also been some interest from French, German and American firms.