Financing agreed for DSB rolling stock procurement

electric rolling stock fleet Danish State Railways (DSB) and the Nordic Investment Bank (NIB) signed a EUR 400 million agreement which will support the operator to create a fully electric rolling stock fleet from 2020 to 2025.

The 15-year loan will finance the acquisition of 42 Vectron locomotives as well as more than 100 train sets and coaches. The operator has recently ordered 8 AC Vectron locomotives from Siemens Mobility which will be added to the existing fleet.

“The investment is a significant step towards realising the Danish government’s carbon emission policy and is a response to the expected increase in the number of passengers using public transport in the coming years. Better connectivity and more efficient service will contribute to the sustainable transition of rail transport in the future”, Henrik Normann, the President of NIB said.

The electric rolling stock fleet is part of a ten-year programme that aims to replace the company’s ageing fleet and to curb CO2 emissions to zero by the year 2030. The expansion of the train fleet is expected to increase the reliability and quality of service and improve regional and international connections. DSB will also start to phase out diesel locomotives and older train sets.

“The upgrade of the Danish train fleet delivers a significant contribution to the green agenda. The investment is sizeable and will take place over a number of years. On this basis, DSB is pleased with the cooperation and the trust NIB shows DSB by providing long-term financing for green investments,” Flemming Jensen, CEO of DSB said.

DSB’s fleet currently includes around 200 diesel locomotives and train sets. During 2020–2025, 17 of these will be phased out. The switch to electric locomotives alone will decrease the company’s direct scope 1 CO2 emissions by some 27,000 tonnes annually. Emissions of NOx are expected to decrease by some 456 tonnes per year, and particle emissions are estimated to be reduced by 10 tonnes or 60%. Further positive impacts are expected with new train sets coming into operation. In February, DSB awarded Talgo a contract for the delivery of 8 standard locomotive- hauled cars, including the supply of spare parts for a period of 16 years.

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