DFDS to reorganise rail business

DFDS has decided to withdraw rail services between Italy and Denmark/Sweden/UK. Regrettably, this will affect offices and staff in Italy, Sweden and the UK. Danish staff to be transferred to DSV.
Intermodal services Italy-Benelux/Norway/Ireland will continue. Road services Sweden-Italy will also continue.

For some years, DFDS has worked hard to improve the results of our rail service between Italy and Northern Europe through new strategies, downsizing, change of organisation, a rail competence centre and other means. Despite these efforts, results have continued to be unsatisfactory.

In addition to this, the service has repeatedly been disrupted by breakdowns in the railway network, the latest of many being the collapse of the railway tracks at Rastatt in southern Germany. These disruptions have had a negative effect on volumes, profitability and customers’ belief in our rail service.
We have now come to the conclusion that we need to fundamentally change our business to and from Italy in order to make it viable. Therefore, we will no longer offer rail based services between Italy and the UK, Denmark and Sweden with effect from 1 April 2018.

This leads to a complete reorganisation of our rail business:
IN ITALY: Regrettably, the withdrawal affects all our 22 staff in Italy. Our attempts to find new owners for the business have been unsuccessful and the office and warehouse in Fagnano will be closed. Consultations with employees and representatives will commence immediately

IN DENMARK: As of 5 March, DSV will offer customers on the Denmark – Italy corridor to take over DFDS’ services. DSV sees a potential for synergies on this corridor, and this means that our five rail colleagues in Fredericia will transfer to DSV.

IN SWEDEN and the UK: The rail organisation in Gothenburg and Immingham consists of five and two staff, respectively. Consultations with employees and representatives will commence today.

NB: Our road services between Sweden and Italy operated by DFDS Lilla Edet (formerly Italcargo) will not be affected and will carry on business as usual.

Our offices in BENELUX, IRELAND and NORWAY will continue to offer rail services and intermodal transport using a combination of road and rail. Rail services to and from Italy will be operated and controlled from our offices in Oslo and Rotterdam, respectively

We are very sorry about the impact this decision will have on our colleagues who have worked hard to make the business successful in spite of the headwind caused by the lack of efficiency and continuity in the railway network. We are doing our utmost to find other employment for as many as possible and will inform about this on an individual basis.

Eddie Green,
Executive Vice President, Head of Logistics Division

March 5, 2018