18.02.16
GTR secures funding for Siemens-built Class 700 variants
Govia Thameslink Railway (GTR) has confirmed the financers of its major £200m fleet of Class 700 variants that will replace the 40-year-old trains on the Greater Northern suburban route.
The operator confirmed that the order will be the first for the new rolling stock company (ROSCO) Rock Rail, with equity provided from Standard Life Investment’s SL Capital and debt from Aviva Investors.
It had already chosen Siemens to provide the fleet late last year, but had only said it would “run a financial competition” to identify sources of funding.
GTR’s chief executive officer, Charles Horton, said: “We are delighted to have secured the financing for this new fleet which will give our passengers on Great Northern’s suburban routes a modern, high-quality environment which is light years ahead of what we have been able to offer to date with the current 40-year-old stock.
“And when we bring the Moorgate trains online we’ll also increase the frequency of services considerably in the off-peak and at weekends and even, to a lesser degree, in the morning and evening peaks.”
Rock Rail’s founding partner, Mark Swindell, said the ROSCO has been developing a new approach to funding rolling stock for the past two years, “which offers financial institutions the opportunity to invest directly in core rail assets”.
Mark Versey, Aviva Investors’ chief investment officer, said the “ground-breaking new solution” to financing trains “required a pragmatic approach to structuring, particularly around refranchising risk”, which ultimately represented “the high degree of confidence” the companies have in the rail industry’s growth.
The new fleet, comprised of 25 climate-controlled six-carriage units, will replace the Class 313s currently running on the network – the oldest type of electric train in operation in mainland Britain.
According to Siemens Rail Systems’ MD, Steve Scrimshaw, the fleet represents the third order for their “innovative and flexible Desiro City train platform”. The Class 700 version of the fleet is currently being built for Thameslink routes.
The trains will run between Moorgate in London and Welwyn and Hertford, Stevenage and Letchworth.
Their features include fixed length with full width inter-vehicle gangways, “intelligent” air-conditioning, the latest in passenger information systems, full compliance with disability legislation, power points throughout and wi-fi functionality.
Although the trains will be built in Germany, Siemens said it is working closely with the UK supply chain to create jobs across the country from Poole to Hebburn.