Renfe to enter Italian market after acquiring stake in local operator

Spanish national rail operator Renfe is set to expand into the Italian market after acquiring a 33 per cent stake in Longitude Holdings, the company behind Turin-based private rail operator Arenaways.

Renfe’s international business arm, Renfe Proyectos Internacionales, has taken a third of the holding company, while Spanish investment firm Serena Industrial Partners also holds a 33 per cent stake.

The newly restructured company “will begin operating imminently”, according to Renfe, with plans to operate two routes across Italy’s Piedmont region as soon as January.

In a statement, Renfe said Arenaways will operate a regional route that connects the towns of Cuneo, Saluzzo and Savigliano, with services set to begin in January, as well as a route connecting Ceva and Ormea. Services on the second route will commence once infrastructure adaptation works by the Italian Railway Network are complete, Renfe said, however it did not provide a planned launch date.

Together, rail operations on these routes are worth €54 million, according to Renfe.

Longitude also plans to expand its operations to other public and commercial routes and, according to the company, has already obtained authorisation from the Italian Transport Regulatory Authority to launch long-distance connections under an open access system on the country’s northwest-northeast routes as well as its north-central-south routes.

Commenting on the restructure, Longitude CEO Matteo Arena said: “The experience, international know-how and strength of the companies behind Arenaways will help us to achieve all our goals by constantly improving the quality of our products and services.

“We have been defined as ‘the third national operator’, however, we do not consider competition as opposition: competition offers huge benefits for users and for the entire community, as it immediately translates into more choice, better services and diversity.”

Renfe chairman Raül Blanco added: “This operation means that we have new European partners, expanding into a new market of recognised prestige in the railway sector.”

The move follows Renfe’s recent launch of cross-border services into France as well as French rail operator SNCF’s previously announced plans to offer high-speed TGV services across Italy.

The entry of both Renfe and SNCF into the Italian market is set to rival local players Trenitalia and the privately-owned Italo.