Lineas, Ermewa and Beacon rail have just launched a long-term partnership based on the sale-and-leaseback of rolling stock. The cooperation concerns the sale and long-term leasing of diesel locomotives and wagons and is considered a huge financial success from Lineas.

The deal involves three big industry names. Lineas is Europe’s biggest private rail operator, while Ermewa and Beacon Rail are among the leaders of the wagon and locomotive leasing market in Europe and the UK. The trilateral partnership concerns the sale and lease of the 109 177 diesel locomotives and 4,000 wagons. Even though the cooperation’s timeframe is not clear, all parties underlined its long-term character.

Financial boost

Lineas stressed the fact that the development will have a very positive effect tom its financial profile. The company explained that it will be able to “reimburse its senior credit facilities entirely, strengthen its financial buffers, and increase its flexibility” with this deal. Jan De Raeymaeker, CFO of Lineas, highlighted that “the sale-and-leaseback transaction is an important step towards our transformation into an asset-light company, keeping long term access to these strategic assets, whilst at the same time increasing the flexibility to up and downscale in a continuously evolving market environment.

On top of that, the freed capital could help Lineas invest in other projects such as the Digital Automatic Coupling (DAC) and the European Train Control System (ETCS). “These innovations are essential in making our rail offering even greener and more efficient, and thereby driving Modal Shift and contributing to Europe’s Sustainability Goals,” said Kurt Koffyn, COO of Lineas.

Also read:

• A spark of rail freight at COP26 in Glasgow
• Lineas expands services from the North Sea Port with connection to Milano
• Lineas CEO: acquisition rail operator Rotterdam first step growth strategy