Hector Rail

Sales: SEK 2,614 million in 2017
EBITDA: SEK 318 million in 2017
Employees: 218

Hector Rail Group is an independent line haul provider for the European Rail Transport Market providing traction and related services across Scandinavia, Germany and UK. The Group's strategic vision is to become the leading independent pan-European rail freight operator.

Hector Rail Group consists of Sweden’s largest (Hector Rail AB) and UK’s third largest (GB Railfreight) private rail freight companies, and offers environmentally friendly transportation solutions on rail, to clients such as industrial companies, forwarders, and other rail companies. The Group currently operates a total fleet of more than 230 locomotives and has 900 employees, performing over 14 million train kilometers per year

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Market trends and drivers

The market outlook for Hector Rail Group is positive, with expected growth in the rail freight market driven by positive macro trends. Rail freight offers a superior cost and service offering for long distance and high tonnage transportation, as well as environmental benefits compared to other modes of transportation. Additionally, there are strong national and European efforts directed at improving rail infrastructure and interoperability across the Group's key markets

Investment potential

Hector Rail Group has a very strong market position in its key markets, and is an ideal platform for further growth. Going forward, Hector Rail Group is continuing its expansion both in its core markets, UK and Scandinavia, by winning market shares. Further also drive organic and inorganic growth in existing and new customer segments and markets in continental Europe. In addition, EQT continues to support the Group in evaluating additional acquisition opportunities. The value creation plan for Hector Rail Group are to purse best-in-class safety and sustainability position on the market together with an operational excellence in terms of fleet and driver utilization, maintenance and standardization of operational processes.