02.04.19
Wales and Border rail franchise in £200m deal for new metro fleet
The Wales and Borders rail franchise has received £200m from the financial services giant Legal & General to provide new rolling stock on the south Wales Metro.
The funding will see a new Wales and Borders rail fleet replace the current “ageing” fleet and deliver increased capacity for services in and around Cardiff on the Core Valley Lines (CVL) metro route, which is mostly electrified.
The fleet will consist of 60 new trains with 36 light rail overhead electric and battery powered trains, and 24 tri-mode trains which are to be manufactured by Stadler and are due to enter operations in 2024.
The new metro fleet will replace the current diesel fleet, reducing emission on the CVL route, whilst the tri-mode trains will be able to operate from overhead electric lines and battery or diesel engines.
The £200m funding in long-term debt financing represents Legal & General’s fifth investment in the industry and “demonstrates a continued commitment to UK infrastructure.”
Tom Sumpster, head of infrastructure at LGIM Real Assets, commented: “We are pleased to be financing the purchase of new rolling stock for the Wales & Borders franchise, helping to provide cutting edge transport with lower carbon emissions in Wales and to be a part of growing transport links between England and Wales.”
Eleanor Bucks, managing director of Legal & General Retirement, added: “We are very pleased to have helped finance new rolling stock in Wales, as part of our continued investment in UK railway provision.
“This investment also complements our previous activity in the regeneration of key parts of Cardiff, including the area around the train station.
“We are committed to our investments in infrastructure in the UK, particularly where they play such an important part in people’s daily lives and can help bring people, businesses and communities together.”
The new Wales and Border rail franchise is being operated by KeolisAmey, which is also carrying electrification work on Core Valley Lines.