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Rail competitor chugs forward

A private Finnish railway operator, Fennia Rail Oy, plans to start transport on the Finnish rail network in 2015 and has now announced a supply agreement for three diesel locomotives with the Czech CZ Loko.

veturi kiskoilla
Image: fenniarail

Fennia Rail Oy, previously known as Proxion Train Ltd, is owned by a group of Finnish companies and private persons. The company said this week that it will take delivery of three 774.7F diesel locomotives next autumn and thereafter begin freight transport on the Finnish rail network.

According to Fennia Rail, the engines for the locomotives will be manufactured by Caterpillar and have the highest traction capacity and lowest emissions of any diesel locomotives in use in the country.

Fennia Rail CEO Kimmo Rahkamo told Yle that operations on the national rail network are likely to begin next autumn in southern or south-eastern parts of Finland. He added that negotiations are underway with customers for the company's services.

The company was originally set up with the business strategy of offering rail transport services to corporate clients such as the wood processing industry at a lower cost than those provided by the state railways VR.

VR declined to comment on Fennia Rail's announcement of its locomotive acquisition deal or on the situation in the rail freight market. VR's corporate communications office did, however, indicate that it welcomes the competition.

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