One left in race for Romania's CFR Marfa, likely winner also bids for regional railway freight companies

Only one bidder is left in the race for Romania's railway freight company CFR Marfa's privatization, after two decided to withdraw at different stages in the process. With the winner due to be announced on Thursday, June 20, only Grup Feroviar Român (GFR), owned by Romanian businessman Gruia Stoica is left in the race. The Romania-Austrian association Transferoviar Grup - Donau Finanz was the last to withdraw on Wednesday, while the American OmniTRAX withdrew earlier in the process. Both companies which withdrew from the race said they would appeal the privatization procedures. The deadline for submitting offers expired on Wednesday, June 19, at noon, and by then, only GFR had submitted an offer. This privatization has a tight deadline as it was among the pledges for the International Monetary Fund (IMF), which is due to visit Romania soon and review the progress of the country on the path of reforms and privatizations. Given all these, the likely winner could be GFR, according to pundits. GFR is CFR Marfa's main competitor in Romania and the two companies together control 70 percent of the railway freight market in Romania. The Romanian company aims regional expansion, and on Friday, June 21 it will submit offers to take over the railway freight companies in Bulgaria and Croatia, hoping to become a key regional player, and turn Romania into a transport hub. The two foreign companies have a total turnover of EUR 250 million and some 10,000 employees in total. In Romania, the bid for buying 51 percent in CFR Marfa starts at EUR 180 million. GFR, part of the Grampet group, recently accessed a EUR 54 million credit line from Eximbank, which will be used for the investments in the Bulgarian and Croatian privatizations. CFR Marfa is the largest railway freight carrier in Romania, with a turnover of EUR 261 million in 2011 and a loss of EUR 22 million. editor@romania-insider.com