This article first appeared in the Railway-News magazine Issue 4 2021.
By Dr Carsten Wiebers, Global Head of Aviation, Mobility & Transport, Torsten Osterloh, Team Leader Mobility & Transport at KfW IPEX-Bank, and Wolfram Bahle, Managing Partner / CSO at the Swiss start-up MFD Rail
The federal government of Germany has been supporting the expansion and revitalisation of the intermodal transport system in Germany and Europe for more than 20 years.
During this time, the transport of goods, commodities and machine parts using at least two different modes of transport in the supply chain has developed into a segment with dynamic growth – the “moving average mid-term prognosis” of the German Federal Ministry for Goods Transport (BAG) currently estimates that the volume of rail freight transport will increase to 390 million metric tonnes by 2024. This is not only due to capacity that is much easier to scale, but also due to the role that intermodal freight transport plays in achieving the climate targets formulated in political discourse. It will not be possible to successfully transform transport without including railways in the supply chain. This is why KfW IPEX-Bank and MFD Rail, together with the majority shareholder of MFD Rail, a fund advised by Oaktree Capital Management, L.P., are involved in CO2-efficient rail freight transport and are thus contributing to the success of the transport transition.
The networking of global markets in the course of globalisation and the success of online retail have swept global goods transport along with them over recent decades; goods transport has grown by around 75 percent in the last 30 years – but rail transport has only played a very small part in this. This disparity has tangible repercussions, two of which we will briefly discuss here. On the one hand, existing infrastructure is used unevenly. On the other hand, lorries produce significantly higher emissions per kilometre when compared to rail-based solutions and thus cause more damage to the climate. From an economic perspective, this creates a need for investments – the state, investors and even financial institutions will play a central role here, including KfW IPEX-Bank as a financing partner with a great deal of expertise in financing passenger and freight transport projects. It has been continually expanding its financing in the railway sector for years.
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KfW IPEX-Bank provides a NOK 1,148 million (approximately EUR 100 million) green loan facility for the Norwegian Bane NOR Eiendom.
KfW IPEX-Bank joins Credit Agricole CIB and La Banque Postale to strengthen NEoT Green Mobility’s multi-currency financing structure.
KfW IPEX-Bank has provided around EUR 53 million for Kölner Verkehrs-Betriebe (KVB), a subsidiary of Stadtwerke Köln.
KfW IPEX-Bank's financial contribution to Railpool will be used to procure 50 new Alstom locomotives and expand into the French market.
Debt facilities have been arranged & underwritten by a consortium of banks for The Go-Ahead Group, a leading UK transport provider.
KfW IPEX-Bank is financing a pool of new freight cars for the Polish freight wagon lessor, Eurowagon.
KfW IPEX-Bank has provided financing to Arkas Lojistik for the purchase of 5 Stadler EURODUAL locomotives for railway freight service.
KfW IPEX-Bank has contributed EUR 200 million to the Dutch State Railway company NS’ investment programme for the region.
KfW IPEX-Bank recently aided the financing of Amber Infrastructure Group and DIF Capital Partners' acquisition of Rail First Asset Management.
Belgin Rudack has become one of five members of KfW IPEX-Bank’s Management Board, responsible for export and project finance within KfW Group.
KfW IPEX-Bank is providing 100 million Euros to Stadtwerke Frankfurt in order to finance new trams for the city of Frankfurt, Germany.
KfW IPEX-Bank is providing financing of EUR 70 million for the construction of a maintenance facility for the Hessian State Railway (HLB).
KfW IPEX-Bank and DAL have implemented an investment by NEB in seven hydrogen trains to run a local public rail service for Heidekrautbahn.
KfW IPEX-Bank is financing 40 new light rail vehicles to replace the oldest ones in the Stuttgarter Straßenbahnen AG (SSB) fleet.
KfW IPEX-Bank and Siemens Financial Services support transport transformation in Germany with another eight “green” locomotives for RIVE.
KfW IPEX-Bank, European Investment Bank (EIB) and NORD/LB are jointly financing the expansion of public transport in the Chemnitz region.
KfW IPEX-Bank is financing MFD Rail's investments in new freight cars. The funds will be used to finance up to 6,500 new intermodal railcars.
KfW is providing an estimated 440 million EUR to assist the Indian city of Surat with its energy-efficient metro system development.
KfW is supporting companies to invest in sustainable mobility with a broad range of promotional programmes.
EIB, KfW IPEX-Bank and NordLB finance new battery-powered regional trains to replace diesel in the surrounding area of Berlin.
KfW IPEX-Bank co-arranges financing of 50 new SmartHybrid and 53 existing modern shunting locomotives to be acquired by Nexrail.
Bayern LB, Helaba and KfW IPEX-Bank are co-financing the acquisition of 32 modern Coradia Continental electric multiple units for HLB.
KfW IPEX-Bank join the financing of Aves One AG, arranging a €75 million warehouse facility to expand their rail freight wagon portfolio.
KfW IPEX-Bank, ABN AMRO Bank, Crédit Agricole Corporate & Investment Bank and ING Bank are supporting Railpool's investments.
KfW IPEX-Bank supports the freight transport sector once again, financing new company Wascosa UK Ltd. to purchase freight wagons.
KfW IPEX-Bank is providing EUR 80 million towards the financing for new electric multiple units acquired by the passenger rail company ÖBB.
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