The German firm has increased its share in the NordCargo by a further 11% giving it a total stake of 60%.

As a result of the share increase, DB Schenker Rail Italia will transfer its current business to NordCargo and the activities of both companies will merge under the umbrella of NordCargo.

Alexander Hedderich, chairman of DB Schenker Rail, said: “The amalgamation of these two companies will enable us to improve our product portfolio in Italy and along the north-south-bound corridors, thus laying the basis for attracting more transport onto rail in both the international and the Italian domestic markets.”

NordCargo has a workforce of about 200 and generated revenues of roughly €40m (US$58m) from international and domestic transports.

The company is licensed to operate on the Italian rail network, runs 7,000 trains, 1.4m train km per annum, and provides traction on routes along the Adriatic and Tyrrhenian coasts between Milan and Naples.

Italy is one of DB Schenker Rail’s most important foreign markets, with transports to and from Italy accounting for roughly one quarter of the company’s total international revenues in 2008.