Each month, freelance writer and asset
finance specialist Anthony O’Connor breaks
exclusive news and provides analysis about business in the European
rail finance sector. In his third report for Leasing Life
on this theme, he covers leasing to Stagecoach and developments in
the German market.

Rolling stock leasing in the German market has welcomed two new
leasing entities in recent weeks that will both capitalise on
growing demand for locomotive and passenger stock leasing.

Northrail GmbH, owned jointly by the Hamburg-based investment
company Paribus Beteiligungen GmbH, with 74 per cent and the Port
of Kiel (Seehaven Kiel GmbH & Co KG) with 26 per cent, will
focus on procurement, administration and leasing of diesel
locomotives to meet growing rail freight demand.

Northrail’s managing director, Ulrich Krey, said: “The demand
for locomotives is already greater than the supply.With the
Northrail locomotive pool we are creating the possibility to meet
the demands of our customers swiftly, flexibly and
economically.”

The company said it will offer newly built locomotives and
second-hand but completely renovated or re-engineered locomotives.
The Northrail locomotive pool, which is currently being set up,
will consist mainly of diesel locomotives.

Northrail will target light to mediumheavy freight transport
services on nonelectrified rail stretches, as well as shunting
operations at rail stations, terminals and train assembly points
and for rail transport services on branch lines and on industrial
and company rail networks.

Also, asset finance banks HSH Nordbank and KfW IPEX-Bank have
announced a 50/50 joint venture to meet what they describe as
“increasing need for rail assets” in an entity called Railpool that
will be headquartered in Munich.

Both banks believe ongoing rail privatisation across Europe will
generate greater demand for the finance, leasing and advisory
services that Railpool will offer. The banks stated that Western
Europe will need €5.6bn in new locomotives by 2015. And in the same
timeframe, a similar amount will be needed for regional rail
transport.

“The aim of Railpool is to create the first one-stop shop for
rail operators, setting new standards in financial services for
rail transport through an asset management platform,” said Mathis
Shinnick, global head of transportation at HSH Nordbank.

“Owning the rail assets allows Railpool to issue finance and
capital market products on the fleet and thus further participate
in the performance of the rail pool,” he said.

“Founding Railpool is the logical development of our product
range for financing rail cars,” says Christiane Laibach, member of
the KfW IPEX-Bank executive board. “Railpool will help meet the
sharp growth in demand for operating leases in an individual and
targeted manner.

Railpool is in the process of acquiring a fleet of locomotives
and rail cars for regional rail transportation services and leasing
them to private rail operators.