Today, rolling stock investments are estimated at EUR 35 Billion per year, but higher investments are required as governments announce new projects for the development and extension of railway networks and railway transport is promoted as efficient, performing eco-friendly and safe freight and passenger transport.
Bulk of rolling stock is still held in the public sector where the rich operators finance procurement from cash flow or from Eurofima and the poor and the prospective private operators struggle. Thus, the private sector is considered a financing solution, as public resources are limited and not available to private operators and operating leasing should be a key catalyst to a more competitive industry. But the number of banks in the market is limited, under balance sheet pressure, while the railways should be attractive to institutions and the capital markets. Finance types are different and include: secured debt, manufacturer credit/conditional sales, PPP structures, finance and operating leasing. But the objective must be asset backed finance and the key problem is security”, declared Howard Rosen, Chairman of Rail Working Group at the Railway Days – Wider Black Sea Area Railway Investment Summit.
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