Some significant numbers have been confirmed here in the UK, for the largest rolling stock deal since the privatisation of the country’s rail network began in 1994. Following the Department for Transport’s announcement last month that Abellio were confirmed as the new East Anglia Franchise Operator that connects London, Cambridgeshire, Essex, Hertfordshire, Suffolk and Norfolk. And now as part of winning this bid, Angel Trains can now confirm that they will be financing £900 million for the procurement of 650 new trains for the franchise. Angel Trains is one of Britain's leading train leasing companies and has been an owner and lessor of rolling stock since 1994. It is unique in leasing to all 19 franchised operators and open access operators in the UK and offers an attractive source of rolling stock for companies working on a franchise basis. So what are the details of the deal?
The British rolling stock company Angel Trains emerged in 1994 following British Rail’s privatisation. The company have already invested £3.5 billion into new rolling stock. Since their start-up, they now own over 4300 vehicles which accumulate to 37% of the country’s total rolling stock. Angel Trains have long-standing deals with companies such as Bombardier, Merseyrail, c2c and now they have sealed their largest private investment in rolling stock to date.
With this £900 million investment, Abellio East Anglia will be able to finance their latest agreement with Bombardier which will supply 650 carriages on their behalf. Angel Train’s investment will also help increase 1,600 UK rail jobs indirectly by supporting the Derby based Bombardier train factory. So the repercussions of this announcement is likely to benefit a wide range of stakeholders with this new investment plan.
Angel Trains have established a good rapport with the Commonwealth Bank of Australia (CBA) which will assist their investment plans for Abellio East Anglia. This financial settlement will also help boost CBA’s reputation in the rail industry and UK manufacturing.
Dominic Booth, MD of Abellio UK, said: “We are pleased to have finalised the agreement with our financier Angel Trains that is part of the largest ever privately procured train order in the UK. We look forward to working with Bombardier and Angel Trains to deliver the 665 air conditioned Bombardier Aventra train carriages that will greatly improve the journey experience of millions of passengers”.
Malcolm Brown, CEO of Angel Trains, to conclude said: “The modernisation of East Anglia’s network is a major boost to the UK rail industry and the economy. We are delighted that, through the supply of 665 new Bombardier Aventra vehicles, Angel Trains will be contributing to an improved service and experience for passengers in the region. This project…reiterates Angel Trains’ ongoing commitment to the UK rail industry. We look forward to supporting our industry partners and continuing to make further significant investments.”
In addition to this investment….
The new nine year franchise will deliver a major package of improvements for rail services in the region, including:
- Investment of £60 million in stations
- More services and faster journeys across the network
- A better ticketing system for customers
- The introduction of flexible 'carnet' tickets, lower fares on the Stansted Express and automatic Delay-Repay for seasons and advance purchase ticket holders
- 55% more seats into London in the morning peak period
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