Geodis has grown in the USA
Geodis, the logistics division of the French rail SNCF, is maintaining steady profitability in a challenging international environment. The contract logistics business was buoyant in 2019, especially in the United States.
Freight forwarding volumes came under pressure in the second half of the year as the air freight market faced headwinds from the intensifying US-China trade war. Growth in distribution sales was offset by declining road haulage volumes in France.
Business with IBM also remained slow as the new contract came into effect. Productivity-improvement measures helped to sustain profitability amid tough economic conditions. Ermewa, SNCF’s wagon and container leasing business, reported further growth in 2019.
The acquisition of Raffles Lease saw it become the world’s leading tank-container leasing provider. The debt refinancing deal, completed in 2019, will allow Ermewa to invest heavily in rolling-stock upgrades and pursue cost-cutting measures. (mw)