Over 400 million investment in rail freight in Italy
During Expo Ferroviaria Laguzzi (Fercargo) illustrates how railway companies targets purchasing new locomotives and need new bank loans
Last week, railway companies joining Fercargo and Fercargo Manovra attended Expo Ferroviaria at Rho Fiera Milano, that also gathered major Italian Banks, encompassing: Banco Bpm, Bnp Paribas, CariFvg, Banca Carige, Credito Valtellinese, Deutsche Bank, Deutsche Leasing, Intesa Sanpaolo, Mps, Sg Leasing, Ubi banca, Unicredit and Unicredit Leasing.
The exhibition also welcomed renowned locomotives manufacturers Bombardier, Siemens, CZ Loko Italia and Vossloh Locomotives GmbH that showcased their new products.
“The initiative aimed at fostering cooperation with Banks by illustrating in-depth peculiarities of rail freight market in Italy and major challenges for the development of this sector” Giancarlo Laguzzi, Fergargo's President said.
Current market shows a lack of locomotives compared to an increasingly growing demand, “Each loco ranges from 4.2 to 5 million Euro and roughly one hundred are serving the Italian market. In five years locomotives will need to be doubled, namely a further hundred units” thus implying half billion Euro investment.
Up to now, three foreign leasing companies (Alpha Trains, Ekiem and Mrce - Mitsui Rail Capital Europe) controlled the whole Italian market chartering out new locomotives.
“In the past decade Italian railway enterprises stepped into a newly deregulated market chartering new units to launch their lines, conversely, current structural growth pushes enterprises to buy rolling cargo units, but in order to make long-term investments they need to raise funds from lending Banks”.
Average lifetime of a locomotive ranges from 25 to 30 years, it keeps its value in time and can be easily re-sold or chartered out, being suited to operate in different countries in Europe.
“Member companies would be happy to leave interest rates in Italy rather than abroad”, concluded Fercargo's President.
Rail freight transport in Italy, in terms of tons/km, grew by 4.6% in 2016, while, according to Assifer's data, railway transport in general recorded 3.98 billion Euro turnover (-1.6% versus 2015).
Rolling cargo market soared by 8% with a remarkable increase versus foreign market (+43%), electrification branch showed 5% increase versus 2015, while rail signalling dropped by 17% after former year's boom which reached 15% increase versus 2014.