MSC and Renfe Mercancias finalise joint venture agreement

After two years of negotiations, the agreement for a joint venture between Spain’s state-owned rail freight operator Renfe Mercancías and shipping giant MSC has been finalised. However, the support from trade unions remains vital, as they already voiced their disapproval and threaten to go on strike.

The agreement would see the creation of a new company between Renfe and Medway (MSC’s rail arm). The new entity would pick up steel, intermodal and “multi-product” services from the state-owned operator. The deal was finalised already some time ago, but the approval of the unions has delayed the process, according to Spanish media El Mercantil.

Two very different companies

Negotiations between MSC and Renfe Mercancías started as early as 2022. By the end of 2023, the main rumour was that the shipping hegemon would take over 50% of the incumbent, but that decision was dropped in favour of the creation of a joint venture, with a preliminary, non-binding agreement signed one year ago. Despite remaining the largest rail freight operator in Spain, Renfe Mercancías has been losing volumes and money since the sector was liberalised in the early 2000s.

On the other hand, MSC has been thriving in the Spanish rail freight market, continuously growing over the past few years. Through Medway and Medlog, the group has constantly gained market share and has launched various projects in Spain. For example, it is leading the deployment of rail highway services such as the one between Valencia and Madrid, but also opening a number of terminals, especially near the border with Portugal. It remains to be seen how the new partnership with Renfe will further consolidate MSC’s position in Spain.