Italy begins partial privatization of state rail network

Italy kicked off the procedure for partial privatization of its state rail company Ferrovie dello Stato on Monday, infrastructure and transport minister Graziano Delrio announced after a cabinet meeting.

The Italian state will keep a controlling stake in Ferrovie dello Stato, while institutional investors and the broader public will own up to 40 percent, Delrio told a press conference.

"The path undertaken foresees the independence of the network," he said, adding that at the same time, "the public ownership of the network and the public service obligation will be guaranteed."

The process of partial privatization will be concluded in the coming weeks, Delrio also added, according to economic newspaper Il Sole 24 Ore.

One of Italy's largest industrial corporations, Ferrovie dello Stato, employs around 70,000 people, operates more than 8,000 trains per day, and transports 600 million passengers and 50 million tons of freight per year.

The railway network spans over 16,700 km, of which 1,000 km are dedicated to high-speed travel, according to the group's website.

The Italian government's move was part of a broader plan to raise funds in order to cut public debt.

Last month, national postal service Poste Italiane made its debut on the Milan stock market. The partial sale of Poste Italiane -- up to 40 percent -- by the ministry of economy and finance was Italy's largest privatization in more than a decade. Endit