CFR Marfa, SA - Financial Strategy Project (2002-2006)

CFR Marfa, SA (Marfa) is the Romanian government-owned freight railroad company which transports over 90% of the national rail freight volume. Seneca was hired by Marfa to act as a Consultant for the purposes of restructuring the firm into a profitable enterprise operating on commercial, market-based principles and to develop a financial strategy for the company. This project involved performing a complete assessment of rail operations, the management structure, the marketing, commercial, financial and accounting practices of the business, and the applicable local and international legal structure. The impact of open access and emerging multi-modal competition to Marfa was assessed. As part of this phase of the project, field visits were made and detailed interviews with company countries (EU and pre-accession) and worldwide. Commercial and legal relationships between Marfa and public and private entities in Romania were assessed, including those with the national rail infrastructure company and major public and private customers and vendors. Based on the assessed findings, recommendations for changes and restructuring were made in all the relevant areas by Seneca. In conjunction with company management and the Ministry of Transport, Seneca developed implementation plans and schedules for the recommended changes and assisted with the monitoring process as it was put into action. Seneca also assisted Marfa in evaluating strategies for future commercialization options. As part of this task, Seneca performed a comprehensive legal and financial due diligence of the company from the perspective of potential private-sector investors. Specific tasks performed during this project included:

• Rail operations/mechanical assessment, restructuring recommendations, and implementation assistance.
• Management assessment, restructuring recommendations, and implementation assistance
• Commercial and marketing assessment, restructuring recommendations, and implementation assistance.
• Assessment of legal and commercial relationships with the infrastructure provider and major public and private customers and vendors.
• Legal and financial due diligence.
• Legislative/regulatory assessment and recommendations.
• Financial strategy development assistance.