Ferrovial reaches to Eastern Europe

ferrovialFerrovial has now completed the purchase of Poland’s Przedsiebiorstwo Napraw Infrastruktury (PNI), specialised in civil engineering and railway design, construction and maintenance. The Spanish firm said the cost was close to €51 million euro or 225 million zlotys. Ferrovial, which is the owner of BAA in the UK, carried out this operation through Ferrovial Agroman’s Polish subsidiary Budimex.

Alejandro de la Joya, CEO of Ferrovial Agroman explained why the company is interested in Poland:

Poland is one of the countries in Europe that continues to invest heavily in infrastructure. We expect opportunities to arise in the railway market and we will seek to leverage them using the synergies of PNI and Budimex and the experience of Ferrovial Agroman on high-speed railways in Spain.”

PNI has a staff of over 1,700 and operates throughout Poland from offices in Warsaw, Katowice, Radom and Stargard Szczeciñski. It is subsidiary of Polish railway infrastructure company PKP, and had a backlog of €318 million at August 2011. Revenues in 2010 totaled €127 million.

PNI’s most important contracts include refurbishing the Danzig station, rebuilding the Hrubieszów station and upgrading the railway between Krakow and Rzeszów. The company has also upgraded the railway lines between the following cities: Sulechów-Luboñ, Bednary-Zgierz and Goleniów-Ko³obrzeg, among others.

According to Ferrovial, in the first nine months of 2011, Budimex obtained €935 million in construction revenues, a 34.8% increase with respect to last year in like-for-like terms. Its backlog amounted to €1.736 billion. In the first nine months of 2011, Ferrovial Agroman obtained revenues of 3.144 billion euro and had a backlog of 9.921 billion euro.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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