Financing Rolling Stock

Rolling Stock

Thelo Rolling Stock finances all aspects of “rolling stock” including all movable vehicles and equipment that operate on a rail network.

Financing of rolling stock is a crucial part of an effective rail transportation system, enabling the movement of goods and people. This includes:

Locomotives

  • Diesel locomotives
  • Electric locomotives
  • Shunting locomotives

Freight wagon

  • Open wagons
  • Covered wagons
  • Tank wagons
  • Hopper/Bulk wagons
  • Platforms/Intermodal wagons

Passenger trains

  • Electric multiple units
  • Diesel multiple units
  • Coaches
  • Light rail vehicles
  • Metro vehicles
  • High-speed trains
  • Very high-speed trains (>250 kmh)

Our Clients

Thelo Rolling Stock is a leading independent service provider for rolling stock finance solutions to rail operators, concession holders and freight owners, allowing access to quality modern rolling stock.

Rail operators

Description

  • In our region, these are generally state-owned enterprises that operate as self-regulating monopolies providing the integrated national railway service from infrastructure ownership to freight and passenger operations.
  • Where inter-railway agreements exist, the train service operations may transcend borders into neighbouring countries within a region, despite infrastructure being limited to the nation state.
  • Emergence of private rail operators collaborating with state-owned infrastructure owners to access rail networks through an Open Access System.

Thelo Rolling Stock Client base

Opportunities / Benefits to rail operators

  • Addresses investment backlogs and pressure to contribute to the development in the country by increasing rail capacity.
  • Improved efficiency: Encouraging operators to optimise resources and reduce costs.
  • Reduced congestion: Shifting freight and passengers from road to rail, reducing highway congestion and pollution.
  • Economic growth: Stimulates economic activity, creating jobs, and attracting investment.
  • Regional development: Improving connectivity and accessibility to remote areas, promoting regional growth.
  • Increased rail network utilisation: Optimising asset use, reducing idle capacity, and extending the lifespan of infrastructure.
  • Encouraging private investment: Attracting private sector investment in rail infrastructure and services.

Concession holders

Description

  • These are private sector enterprises that participate in the operation and management of either sections of state-owned railway networks or purpose-built corridors.
  • The concession holders’ legal relationship is generally structured by way of a Public Private Partnership (PPP), ranging from track access arrangements to manage and operate the network for a specified period through to concession contracts.

Thelo Rolling Stock Client base

Opportunities and benefits to the concession holders

  • African States that were showing a declining performance within the railway sector are increasing private participation in sections of state-owned railway networks by entering into partnerships with freight owners.
  • A large percentage of rail transportation activities in the Sub-Saharan Africa region are managed by private operators.
  • Private sector investment: Attracting new investment in rail infrastructure, reducing the financial burden on the government.
  • Efficiency gains: Private operators introduce new technologies, processes, and management practices to improve efficiency.
  • Improved service quality: Concessionaires focus on customer service, leading to improved customer experiences.
  • Reduced subsidies: Private operators operate the network at a lower cost, reducing the need for government subsidies.
  • Increased competition: Concessioning may encourage competition among operators, driving innovation and better services.
  • Expertise transfer: Private operators may bring international expertise and best practices to the rail sector.
  • Revenue generation: Governments may receive concession fees, royalties, or taxes from the private operator.
  • Risk transfer: Private operators assume operational and financial risks, reducing the burden on the government.
  • Network expansion: Concessionaires may invest in expanding the rail network, improving connectivity and access.
  • Improved safety: Private operators may prioritise safety, leading to improved safety standards and reduced accidents.

Freight Owners

Description

Also known as cargo owners or shippers, are individuals or companies that own or are responsible for the goods being transported and have identified rail as the most effective solution for transporting its goods across long distances on the continent, either for regional trade or export markets.

They are parties that:

  • Produce or manufacture the goods
  • Purchase or own the goods
  • Are responsible for the transportation of the goods
  • Bear the costs and risks associated with the transportation

These include:

  • Mining companies
  • Energy companies
  • Manufacturers
  • Importers/Exporters
  • Distributors
  • Wholesalers
  • Retailers
  • Agricultural producers

Thelo Rolling Stock Client base

  • Mining companies
  • Containerisation

Opportunities

  • In most instances, these enterprises have no option but to independently source rolling stock and deploy it to transport its products under some form of track access arrangement due to the inefficiency and lack of capital and/or rolling stock of the rail operator.
  • Freight owners typically contract with freight forwarders, logistics companies, or transportation providers to move their goods from one location to another. They may also work directly with railroads, trucking companies, or shipping lines to arrange transportation services.
  • Large international corporations with strong balance sheet support efficient and reliable operators with a clear capacity to generate cash flows.