Hector Rail was founded in 2004 and has grown to become the leading independent rail freight company in Sweden, providing traction services to its customers under medium term contracts.
The company is headquartered just outside Stockholm, Sweden, and has currently around 190 employees operating in Sweden, Norway, Denmark and Germany. Hector Rail offers environmentally friendly transportation services of heavy industry products, raw materials, intermodal freight and passengers to clients such as industrial companies, forwarders, and other rail companies under medium term contracts. The company currently operates a fleet of approximately 50 locomotives and 10 shunters performing over 6 million train kilometers per year. Revenues amounted to SEK 631 million in 2013.
To Hector Rail
Market trends and drivers
The outlook for Hector Rail is very positive, supported by a number of relevant macro trends. Rail freight offers a superior cost and service offering for long distance, high tonnage transportation needs in addition to providing environmental benefits relative other modes of transportation. Additionally, there are strong national and European efforts directed at improving rail infrastructure and interoperability.
Hector Rail is a company with excellent track record both in terms of growth and profitability, which has established itself as the leading independent rail freight company in Sweden. Given the company’s strong market position, Hector Rail qualifies as an ideal platform for further growth. Going forward, EQT sees great potential for organic growth across Scandinavia to be mainly driven by investments in locomotives and the organization. Additionally, there is opportunity for pursuing operational excellence.
In addition to exploring growth and operational improvement opportunities in Scandinavia, EQT intends support Hector Rail in evaluating additional organic or M&A growth opportunities in adjacent markets.