CMA CGM’s expansion

For companies like CMA CGM, vertical integration is the name of the game. The acquisition of the capital of RLE would follow the recent takeover of the intermodal segment of Freightliner UK, finalised at the end of January. Over the past few years, the French shipping company expanded its logistics portfolio with the acquisition of CEVA Logistics, Bolloré Logistics and a 20% stake in the EUROGATE Terminal in Hamburg.

What is the Efficiency Network and when was it introduced?
Efficiency Network is the quality label of the Port of Barcelona. It’s a program that brings together companies that work with high levels of reliability, transparency, and security. The goal is to make logistics smoother, faster, and more predictable for importers and exporters. Through this label, the Port encourages collaboration across the entire logistics chain, making sure everyone works with shared standards and a clear commitment to service quality.

We launched the initiative in 2011. Back then, global trade was becoming increasingly demanding, companies wanted more visibility over their shipments and faster delivery times. The Port of Barcelona saw that the best way to meet these expectations was to unite the different actors in the logistics chain under a common quality framework. Efficiency Network was created to respond to that need, helping ensure that the Port could offer the highest levels of efficiency in Southern Europe.

How many companies are participating in it, and what are the benefits for them?

Today, 97 companies belong to the Efficiency Network community. Between them there are the main container handling terminals, shipping companies, freight forwarders, and transport companies working at the Port of Barcelona. Being part of the program offers them many advantages: they work with a clear methodology for improvement, receive support from the Port Authority, increase their visibility in the market, and collaborate more closely with other logistics partners and public administrations.

A very important part of this growth is the extension of the Efficiency Network to rail freight, which reinforces the Port of Barcelona’s commitment to environmental sustainability. For many years, the Port has worked to boost rail traffic as a greener and more efficient alternative. In line with this strategy, in 2023 Efficiency Network launched a major expansion of its quality label to container rail transport.

This extension aims to maximise digitalization of the entire rail logistics process, improve punctuality of train departures and arrivals and provide full traceability of each container transported by rail. To develop this ambitious initiative, the Port of Barcelona is working closely with all actors in the rail logistics chain, ADIF, the Spanish Railway Infrastructure Manager, railway companies, rail logistics operators, container handling terminals, and leading shipping lines.

Between them, seven of these companies—ADIF, the handling terminals APMT Barcelona and Hutchison Ports BEST, the rail logistic operators SYNERGY and TRANSPORTES PORTUARIOS, and the shipping lines CMA-CGM and COSCO—are already applying the Efficiency Network methodology with the aim of becoming certified in 2026. For them, the benefits are clear: better coordination, more efficient operations, and the ability to offer customers a fully traceable and more sustainable rail logistics service.

How is the quality of service measured?

All companies in the program must meet the standards defined by the Port Authority. To ensure this, their performance is regularly audited by internationally recognized certification bodies. During these reviews, several aspects of their operations are evaluated, such as how quickly customs procedures are handled, whether deliveries are made on time, and how efficiently export cargo is loaded. Once a company joins the program, the Port works alongside them in a continuous improvement process. This collaborative approach helps us understand the performance of the entire logistics chain in detail and respond proactively to changes in global trade.

Do other ports in Spain or elsewhere have similar models?

Some ports do have quality programs, but Efficiency Network is unique to Barcelona. What makes it special is that the Port Authority itself manages the entire model—from the standards and analysis to the close relationship with certified companies. It’s a program built around the values of our Port Community, and it reflects the collaborative spirit and innovation that characterize the Port of Barcelona.

Vertical integration

Big companies, especially the largest shipping lines, have been increasingly looking into vertical integration and taking control of the whole supply chain. CMA CGM, for example, also acquired CEVA Logistics in 2019, Bolloré Logistics in 2024 and a 20% stake in the EUROGATE terminal in Hamburg a couple months ago, establishing a strong position in the intermodal sector.

Another shipping giant taking over the market is MSC. The Swiss-based company has tentacles all over the supply chain industry, especially through its subsidiaries Medlog and Medway. The most important recent developments concern a wagon factory in Trieste, the launch of a Portugal-Spain rail highway service for semi-trailers and the expansion in the French and Austrian markets.

The latest example is DP World’s London Gateway, where ongoing congestion has led shipping lines to review port rotations. In response, one shipping line has diverted a scheduled port call to Southampton. The disruption underlines the flexibility of modern deep-water hubs. It also highlights how, even on Britain’s heavily used network, rail can reshape how congestion is managed across the UK port fleet.

London Gateway responding to its success

Persistent congestion at London Gateway, driven by surging import volumes, particularly from China, has lengthened berth waiting times and threatened schedule reliability. In response, French carrier CMA CGM has temporarily adjusted its South America – Europe trade route (designated “SAFRAN”) to call at Southampton instead of London Gateway. That temporary adjustment has been going on for more than half a year. It has now been extended through the first quarter of 2026.

Down on the north bank of the Thames, DP World, the owner of London Gateway, is engaged in a radical expansion of the terminal. The programme, reported in March, is going from four shipping berths to six. It will also see  the building of a second rail terminal. Southampton benefitted from a Network Rail programme, completed in 2021, which eased rail access. DP World, which operates both terminals, runs a five-times-a-week inter-port rail service, enabling containers to be transferred directly between the two southern English terminals. The Dubai-headquartered company also encourages shippers to move containers inland by rail by offering a financial bounty.

Rail-led resilience beyond the South East

The same model is visible at other British intermodal ports. At Felixstowe, the UK’s largest container port, rail already accounts for around a third of all container movements. It’s often rightly quoted as Britain’s busiest rail freight terminal, which happens to have a port attached. On the West Coast, Liverpool has positioned itself as a rail-connected alternative for deep-sea and short-sea services. The port’s direct rail access to the West Coast Main Line is frequently cited in expansion proposals, even as grand as an autonomous rail tunnel under the city to facilitate better freight access.

Further north, Grangemouth illustrates how rail underpins resilience at short-sea container ports. It doesn’t handle vessels of the size alongside at London Gateway and Southampton. However, it is a strong connection for feeder and European short-sea services. Grangemouth has rail right onto the quayside and functions as a strategic redistribution hub, rather than just a local terminal.

Pressure likely to persist

London Gateway is progressing with its expansion programme aimed at increasing capacity and improving resilience. However, with global trade flows remaining volatile and vessel sizes continuing to grow, congestion risks are unlikely to disappear entirely. The move by the French carrier CMA CGM (see WorldCargoNews.com) merely reflects the health of the UK maritime sector as a whole. The ability to switch port calls without breaking inland supply chains depends increasingly on rail connectivity.

In the near term, carriers are expected to continue fine-tuning rotations. Port operators are being encouraged to lean more heavily on rail. The UK government is eager to see its net-zero targets aided by more both inter-port and port-to-inland rail freight. As Britain’s port fleet continues to reshape and regenerate, rail is proving a central tool for Britain’s intermodal logistics.

The European Silk Road Summit

The rise of vertical integrated logistics companies will be one of the focus points of the upcoming European Silk Road Summit, taking place on 19 and 20 November in Milan, Italy. There, we will analyse how big shipping lines such as MSC, Maersk, COSCO and indeed CMA CGM have undertaken a new approach and took over operations along the whole supply chain.

The event will also be the only chance to get your hands on the very first edition of the RF Magazine, RailFreight.com’s newest printed product. Check out the programme of the European Silk Road Summit here and get your ticket here.

Both transactions signal a welcome vote of confidence in the UK’s rail freight capability. Not to mention the economy overall. CMA CGM’s purchase of Freightliner’s intermodal operations brings deep financial resources and global experience to a market often constrained by capital availability. Meanwhile, MEDLOG’s acquisition of Maritime Transport integrates the UK company into MSC’s vast global logistics network. In both cases, customers are expecting even more reliable service, better-managed intermodal flows. It’s a continuity of investment that benefits infrastructure and employment alike. Indeed, so seamless has been the Maritime move that customers may well be defied to say: “Med who?”

The power of vertical integration

The UK logistics industry thrives on vertical integration. Oh, how the railway industry cries out for a single path, top to bottom – with apologies to Varamis and InterCity RailFreight, both of whom are endeavouring to make that model work. From first mile to last, control over the entire supply chain allows operators to optimise costs, reduce transit times, and provide predictable service.

This is especially true in intermodal rail freight. The connection of port, rail, and road operations can make or break the customer experience. Companies like Tarmac, Malcolm RailRoad, and PD Stirling are prime examples.  Albeit the latter’s ambitious Mossend Integrated Railfreight Park does appear somewhat stalled at present. Nevertheless, by synchronising rail and road operations, they deliver goods efficiently while minimising environmental and congestion impacts. Tarmac’s recent South Wales to Bredbury (south Manchester) rail flow, for instance, eliminates around 60 HGV movements per delivery, a clear social, economic, and environmental win.

Vertical integration is not just a matter of efficiency. It drives economic growth. Forward-thinking logistics companies embrace rail not as an isolated service, but as a core part of a multimodal network that includes road haulage. This approach mirrors trends abroad. Global players like DHL, Hapag-Lloyd, and the afore-mentioned MEDLOG have built operations that blend shipping, rail, and road transport under one strategic vision. By contrast, fragmented networks can struggle with bottlenecks, unpredictable costs, and underutilised assets. Usually, it’s the rail assets getting underutilised, and that’s the most expensive part of the chain. Little wonder that rail freight is the most marginal of all the logistics industries.

Learning from history and the case for consolidation

The UK has tried centralised logistics before. The British Transport Commission (BTC) once controlled almost every aspect of the nation’s transport infrastructure. Ambitious in scope, the BTC ultimately failed due to conflicting political pressures and a lack of commercial agility. Its demise offers a lesson – apart from the obvious one of keeping the politicians at bay. Consolidation under a single, politically driven umbrella rarely succeeds without market discipline. Perhaps this historical context explains why freight operations are excluded from the nationalisation of the railways under the Great British Railways banner. A nimble, commercially oriented private sector is better positioned to drive growth and investment.

Consolidation works in the UK. It creates scale, strengthens balance sheets, and unlocks investment for innovation. Freightliner and Maritime Transport, under CMA CGM and MEDLOG, respectively, will benefit from capital that allows fleet upgrades, terminal expansions, and technology-led efficiencies. Critically, this benefits the rail network: more frequent, reliable, and higher-capacity intermodal services attract new customers, freeing road space and reducing carbon emissions.

In short, a robust private sector with international partners strengthens domestic logistics while complementing national policy goals. How often have we seen respectable, well-run rail freight firms struggle to make ends meet because of those tight margins and a lack of financial headroom. We’ve mentioned at least one already, and here’s another: Helrom. That’s the game-changing German horizontal loading non-craneable trailers onto rails company. Helrom has been in insolvency most of this year for just that reason. Good luck to them, but they need an investor to step out of the shadows. Any disappointed suitors for Freightliner still on the hunt?

There are also doors opened through consolidation for creative business models. Rail operators could, for instance, acquire or merge with road haulage companies to provide end-to-end service. Malcolm RailRoad’s “railhead to railhead” strategy, where long-distance freight travels by train and local delivery by road, is a model that maximises both asset utilisation and customer satisfaction. Similarly, PD Stirling and Tarmac’s multimodal operations show how strategic integration reduces environmental impact, increases efficiency, and grows market share.

Rail’s future role in the UK economy

Logistics is the UK’s largest industry. Yet rail moves only around seven per cent of freight (maybe ten per cent by some generous metrics). Increasing this share is critical for national economic growth and environmental targets. Consolidated, vertically integrated operators are best placed to expand rail’s role. With capital funds, technology, and operational control in hand, companies can scale intermodal operations, open new terminals, and better coordinate road-to-rail flows. Every freight train that replaces 60 HGV journeys, as Tarmac demonstrates, is a win for local communities, the environment, and the economy.

The lesson for UK rail freight is clear. Embrace multimodal consolidation, invest in integration, and think globally while acting locally. The CMA CGM and MEDLOG transactions are more than corporate deals. They are a blueprint for growth, innovation, and resilience. They remind us that a strident private sector, lightly regulated and commercially disciplined, is the most effective engine for the UK’s freight future. There are bound to be other investors out there, not restricted to six-letter capitals and acronyms either.

By thinking of rail not as a standalone service but as part of a fully integrated logistics network, the industry can secure a greater share of national freight, strengthen economic performance, and contribute meaningfully to environmental goals. The sooner operators, policymakers, and investors adopt this mindset, the faster rail freight will deliver for the UK.

The deal, announced on 22 September, includes Freightliner’s rail and road operations, inland terminals, and the Freightliner brand. It is expected to be completed in early 2026, subject to regulatory approval. Other Freightliner divisions – Heavy Haul, Rotterdam Rail Feeding, Poland and Germany operations – remain with existing owners.

Industry and regulatory reaction

CMA CGM had shown interest in Freightliner earlier this year. However, no deal was reached at the time. The renewed purchase, reported by RailFreight.com on Monday, has surprised much of the market. It has been widely welcomed within the rail freight sector. Britain’s Rail Freight Group, the industry representative body, quickly issued a statement of support. “It is good to see this significant investment in UK rail freight,” said Director General Maggie Simpson, OBE. “It is a sign of confidence in intermodal rail growth. We look forward to seeing more details in the coming weeks.”

No UK government ministry has publicly commented. Nevertheless, the sale will likely come under scrutiny by the Competition and Markets Authority. It will also attract the attention of the Office of Rail and Road and the Department for Transport. Both parties have acknowledged that the sale will not finalise before early 2026.

History has been there, done that

The size of the acquisition has not been disclosed. CMA did tell some French media that “the revenue for Freightliner’s activity in the scope acquired by CMA CGM is about GBP300 million” (about €344 million). The Marseille-based group operates 60 port terminals in 30 countries across five continents, either independently or in joint ventures.

Although unique in scope, the concept of intermodal consolidation is not new, even in the UK market. For example, road and rail logistics firm Maritime Transport is a part of MEDLOG, a subsidiary of a rival shipping concern, MSC. Several port operators – including Associated British Ports (ABP) and DP World, and privately owned Port of Middlesbrough – have onshore logistics capabilities extending into the rail freight sector. Historically, almost all freight operations in the UK were centrally managed by the government’s (now defunct) British Transport Commission.

Freightliner’s future with CMA CGM

In a letter to staff, Freightliner Group CEO Tim Shoveller explained the rationale behind selling its Intermodal Logistics (IML) division. He noted that CMA CGM had previously been interested but had stepped back due to other global commitments. “Since then, CMA CGM reapproached our shareholders with an offer reflecting the value of our IML business, which has now been agreed,” he wrote.

Shoveller confirmed that other divisions – Heavy Haul, Rotterdam Rail Feeding, and European operations – will remain under the current shareholders, Brookfield and GIC. Heavy Haul will continue to grow in bulk materials markets as an independent company, generating around £150 million (€178m) in annual revenue.

Ambitions for intermodal growth

Freightliner’s intermodal business, under CMA CGM, could see rapid growth. If CMA CGM converts a significant proportion of its shipping container inland haulage to rail, it could help achieve Freightliner’s long-standing target of trebling intermodal traffic by 2050, potentially reaching up to 90 trains per day.

Despite intermodal making up about 40 per cent of UK rail freight (see latest figures here), rail still accounts for only roughly ten per cent of total goods traffic, with most freight carried by road. This highlights substantial potential for growth, particularly in supporting net-zero targets and shifting freight from road to rail. An aggressive new player in the rail freight scene could shift these metrics significantly.

Delivering integrated solutions

CMA CGM is already a major UK logistics employer. They had nearly 7,200 staff before the purchase, and the acquisition strengthens its intermodal presence. “The acquisition of Freightliner, a leading rail freight operator, strengthens our intermodal presence in the United Kingdom, a strategic market for CMA CGM,” said Rodolphe Saadé, Chairman and CEO. “It enables us to connect sea, rail and road more efficiently, delivering better solutions for our customers. It is also a concrete step in expanding lower-carbon transport options, supporting both their needs and the decarbonisation of global trade.”

The company told French media that the revenue for Freightliner’s activity within the acquisition scope is around £300 million (€344 million). An actual figure for the deal has not been released. CMA CGM operates 60 port terminals in 30 countries across five continents, either independently or via joint ventures, now complemented by the UK’s intermodal rail network.

The financial terms of this deal have not been disclosed yet. However, it continues CMA CGM’s trend of investing in intermodality. The acquisition of CEVA Logistics in 2019, a joint venture with Italian GTS Rail and investments in the port of Lyon are among the main developments over the past year or so.

Industry experts and Chinese media, such as the South China Morning Post, have highlighted the Arctic route’s benefits. Some argue that the icy but thawing north could help China and Europe diversify away from conventional but high-risk routes. Moreover, shortening travel times could accelerate capital turnover and speed up the delivery of electronics and pharmaceuticals, for example.

… could it really, though?

However, there are also skeptics. And those skeptics might, at least for the time being, be right. Some of the world’s biggest shipping companies themselves fall into that camp. A representative of Maersk points to the limited time window for Arctic shipping: only in summer is the route ice-free and navigable. Still, it is not possible to know exactly when that time window opens and closes, and even in summer there might still be ice blocking the way.

As a consequence, you’d need ice breakers from the area to be available at all times. Since most of the route runs through Russian waters, that translates into a need for Russian vessels. Yet, because of sanctions, Maersk does not do any business with Russia, making the use of their ice breakers an impossibility.

Even without those sanctions, the remoteness of the Russian north presents a challenge. For safety reasons, you need to have proper infrastructure nearby (also including ice breakers), which is limited in the sparsely populated coastal areas. A structural limitation in the capacity of the Arctic route.

Far away from the existing network

Moreover, the Arctic route bypasses key hubs, such as in Singapore, Oman and Gibraltar. A Financial Times source told the publication earlier this year that that could be a reason why Maersk is uninterested in making the journey across the Arctic. The company heavily relies on its hub network.

“We have for instance in recent years invested more than three billion dollars in infrastructure (ports/terminals) on our Asia-Europe service”, a Maersk representative explains. “It’s an advanced network with transshipment capabilities as well in between the starting and end point of the services.” The Arctic route is not a part of that global network.

Lastly, there are environmental issues. Large shipping companies signed a deal in 2019, promising not to operate on the Arctic route to avoid polluting the area. CMA CGM underlined this at the time: “The use of the Northern Sea [Arctic] Route will represent a significant danger to the unique natural ecosystems of this part of the world, mainly due to the numerous threats posed by accidents, oil pollution or collisions with marine wildlife.”

The shortest possible route

Even if the sanctions against Russia were no issue, the full-length Arctic route would not be the most beneficial route to take. Rail freight consultant Xavier Wanderpepen points out that the shortest way from China to Europe going through the Arctic would be the Shanghai-Mongolia-Arkhangelsk-Europe route. Note that the majority of that route is land-based. It adds up to around 10,000 kilometres, compared to the entire Arctic route passing through the Bering Strait (16,000 kilometres) or around the Cape of Good Hope (26,000 kilometres).

In other words, when purely looking at distance, the Arctic route is most competitive when transiting most of Russia overland. But even that route via Arkhangelsk seems unfeasible. “At first glance, the Arkhangelsk route seems attractive. However, it remains blocked for much of the year due to the freezing of the polar seas”, says Wanderpepen.

Even a shorter maritime leg would still present the same weather problems as the long way around. “Implementing a solution that works only six months a year, and then stopping everything, is unrealistic”, Wanderpepen adds.

Chaotic transit times

Despite the favourable short length of the route, the rail infrastructure is not in place to accommodate freight flows. For example, there are no regular container trains in Russia to Arkhangelsk. “Transit times would therefore be chaotic, as containers are transported mixed with other cargo. The same issue exists for shipping between Arkhangelsk and Europe: there are no established container shipping lines on this route.”

In other words, a Chinese operator would have to charter a vessel for a couple of dozen containers and face that same challenge to book a train in Russia. “Moreover, there would be no return back cargo to balance costs, meaning clients would pay not only for the loaded trip but also for the empty return, both by rail and by sea”, Wanderpepen adds.

The need for specially chartered ships and trains contrasts with regular lines, says the rail consultant. Regular lines offer much more competitive prices.

Haijie Shipping Company’s offer is seasonal, likely until November. That reflects another issue with this route, according to Wanderpepen. If temperatures drop below -10°C or -20°C in winter, which happens every year, some goods cannot withstand the cold. That includes plastics and electronics.

Traditional success and the limitations of the Arctic

“The success of the maritime route between China and Europe is due to regular ship departures – every day – with vessels that can carry 7,000 to 8,000 units of 40-foot containers. This scale keeps prices very low”, explains Wanderpepen.

In other words, weather, politics and infrastructure conditions make both the Arkhangelsk and the Arctic route around Russia unattractive, if not outright impossible. Even if Chinese companies not bound by sanctions start operations, those will be impacted by unpredictable weather conditions and limited infrastructure. The service offering will remain restricted in scope.

The Arctic route is therefore unlikely to be able to compete with the traditional shipping routes and the Middle Corridor. Both offer more reliability, predictability and infrastructure, even if the Middle Corridor is still very much in development.

The French shipping company is working on expanding its presence in Lyon. Other than the increase in rail, Lyon-Marseille connectivity has also been recently enhanced by an intermodal barge service. Moreover, CMA CGM has invested 40 million euros for the development of container traffic at the Lyon Edouard Herriot Port. All these initiatives are part of the plan to create a Greater Marseille-Lyon Port, promised by French President Emmanuel Macron in 2023.