Despite the expansion of the number of private rail operators in Europe, state funding still makes up 88% of rolling stock procurement, Rail Working Group says in a recent study.
Taking the average annual market volume of EUR 13.33 billion for Western and Eastern Europe, only EUR 11.87 billion or 88% has been identified as being publicly financed. Of the 370 rolling stock projects analysed, 84 (23%) were in Germany, 74 (20%) in Poland, 39 (11%) in France, 37 (10%) in Italy, 22 (6%) in Britain, and the remaining 114 (30%) in other countries.
Whereas private financing accounts for about 12% or EUR 1.68 billion of total market volume, 18% of all projects are related to private financing. Private financing is comparatively important in Britain (46%), the Netherlands (19%), Turkey (18%), Germany (9%) and Italy (9%),
Private financing has considerable importance in the acquisition of locomotives (31% share), EMUs and DMUs (17%), as well as passenger coaches and freight wagons (44%).
As public funding is limited and rail transport will be further liberalised, the Rail Working Group expects private financing to grow significantly. Multiple units are mainly ordered for regional passenger transport which is being gradually liberalised in several European countries. Locomotives are predominantly ordered for freight transport which has already been liberalised across Europe, which is why freight wagons also show a high share of private financing. The study says there is a clear correlation between the liberalisation of market segments and the extent of private financing.
The study of 370 rolling stock projects in 19 countries between 2011 and 2013 was conducted to assess the magnitude of private financing in funding rolling stock acquisitions in Europe, and to determine the absolute and relative importance of private financing.
Share on:
