Veolia Cargo brings into service a new freight train between Bordeaux and Toulouse

Paris, March 27, 2007. Veolia Cargo is bringing into service a freight train for transporting crushed slag (a by-product of the steel industry) between the recently inaugurated Lafarge-Ciments industrial plant in Bassens in the Bordeaux region and the Martres Tolosane cement production plant in the Toulouse suburbs 350 km away.

Lafarge Ciments' choice of rail freight for the link between its two industrial plants is dictated by its concern for environmental considerations. The successful offer made by Veolia Cargo also provides solutions integrated with its client's production line and its performance targets.

Apart from transportation, the contract includes "intra-site logistics", in particular loading and unloading of wagons. The four-year contract represents cumulative revenue of around 10 million euros. Veolia Cargo will initially run three return rail trips a week, rising to five as a function of growing volumes over the life of the contract. The annual tonnage of crushed slag to be transported comes to between 100,000 and 170,000 metric tons.

"We are happy that the Lafarge group, world leader in building materials, is strengthening its partnership with us by selecting us to handle transportation of its products in the South-West, a first for Veolia Cargo in this region," said Stéphane Richard, CEO of Veolia Transport. "I would like to congratulate the Veolia Cargo teams for their success in convincing our partner to expand the scope of the services we handle on its behalf to include freight transportation. This new contract strengthens Veolia Transport's position in industrial services."

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Veolia Cargo

Veolia Cargo is an independent private European freight transportation company, a subsidiary of Veolia Transport, specialized in rail-based logistics. In 2006, Veolia Cargo generated revenue of €100 million. It employs 850 people and carries 35 million metric tons of freight a year. It is primarily involved in medium and long-distance rail-freight transportation (national and cross-border services), management of private sidings at industrial sites and local rail networks, and train-haulage-related services and logistics services at industrial sites.

Veolia Transport

Veolia Environnement's transportation division operates in 27 countries and employs 81,897 people. Veolia Transport generated revenue of €4.95 billion in 2006. The company operates 30,800 road and rail vehicles and carries more than 2 billion passengers per year.

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