This article first appeared in the Railway-News magazine Issue 5 2021.
KfW IPEX-Bank’s Director Origination & Structuring, Mobility & Transport Frank Hermandung on the technological developments within the European rail freight sector and its modal share.
Q: Mr Hermandung, what is KfW IPEX-Bank’s interest in European rail freight transport?
Frank Hermandung: Financing for environmentally friendly passenger and freight transport in Europe, but also around the world, is a core focus of KfW IPEX-Bank, which is responsible for commercial transport and infrastructure financing within KfW Group. We have been committed to the sector with a large team and portfolio for decades, financing both start-ups as well as established market operators. Railway lines, railcars, locomotives and signalling technology: our domain includes everything that requires financing in the wheel-rail system.
Q: What are the latest trends you’ve seen? Have railways entered the 21st century?
FH: Railways in Europe have a long history; many technical elements date back to the last two centuries. It has only been in recent years that freight cars, for example, have stopped using sheer force and extreme power to brake by pressing a steel block on to the freight car wheel tread – a technique from the 19th century.
To date, however, the only change made with tremendous effort by European railcar lessors and operators has been in the material used: the cast-iron block brake is now made of a more suitable material. It is interesting to note that it was not efficiency that led to this development but the need to limit noise emissions.
By its very nature, however, the rail system is slow moving; changes do not take effect on a small scale, as is the case with lorries, but require enormous investments in a huge integrated system with much more closely linked infrastructure and rolling stock. At the same time, the safety and regulatory requirements are much higher than for road transport. In addition, railways, in their capacity as public infrastructure, provide public services and are thus sometimes subject to requirements other than purely economic ones.
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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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