The rolling stock leasing market is changing. New entrants are challenging the status quo, using new models.
Rock Rail has so far financed £2.5 billion of new rolling stock, winning around 40% of new passenger train orders since February 2016. Its Chief Operating Officer Mike Kean explained to the Golden Spanners conference how Rock’s financing model works.
Rock Rail acts as the glue between train operators and its funders – institutional pension providers. The trend towards change began with the Government-led procurements for the Thameslink and Intercity Express Programmes, which transferred infrastructure risk to train builders – a crucial factor in bringing in institutional investors.
Rock was established in 2014 with a belief there was a better way of financing new rolling stock that would deliver better value for passengers and the Government. So far its approach has supported five procurements – Siemens Class 717s for Great Northern suburban routes, Stadler Class 45s and 755s for Greater Anglia, Bombardier Class 701s for South Western Railway, Hitachi bi-modes for East Midlands Railway and most recently Hitachi bi-modes and EMUs for Avanti West Coast; once all are in service this will represent…
