Partnership Railway - more gloom for the Roscos?

So, today the rail industry launched its ‘In Partnership for Britain’s Prosperity’ plan.

Backed by all passenger train operating companies and Network Rail, as well as rail freight companies and the supply chain acting in partnership as one railway for Britain the plan contains the following commitments:

1. Strengthen the railway’s contribution to the economy, keeping running costs in the black, freeing up taxpayers’ money
2. Increase customer satisfaction by improving the railway to remain the top-rated major railway in Europe
3. Boost local communities through localised decision making and investment
4. Create more jobs, increase diversity and provide our employees with rewarding careers

The RDG press release contains a host of supportive quotes from business and the industry, as well as this from NR CEO Mark Carne:

“Over the next 18 months passengers and communities across the country will see a transformation in the services that they receive. Thousands of new trains will be introduced as the culmination of years of heavy investment in improving our railway comes to fruition, stimulating the economy by delivering new job and housing opportunities."

'Thousands of new trains'?

Has anyone told the Roscos? Or did Mark mean 'vehicles'?

Shaken and stirred - Mary Grant to Porterbrook

This from Porterbrook...

Porterbrook Leasing has confirmed the appointment of Mary Grant as its new chief executive officer. Mary will be joining the company and its board on 13 September 2017. She takes over from Paul Francis, the retiring CEO who has been with Porterbrook for over 20 years.

Mary has over 20 years’ experience working in the UK and international transport sector including senior roles at FirstGroup, National Express and Eurostar International.

Phil White, chairman of Porterbrook said: “Mary has an excellent reputation within the transport sector and I am looking forward to working with her and welcoming her onto the board. Mary’s experience and knowledge of the industry will be a great asset to the company.”

Interesting!

Labour proposes gender segregation on rail

Good news for fans of Chris Williamson MP (Sid and Doris Gricer).

The Shadow Home Office minister has suggested a return to Ladies Only carriages.

Alas, this discrimatory nonsense will not do!

As any ful kno there are now at least 39 genders that will need similarly catering for if the industry is not to fall foul of equalities legislation (40! You forgot to include Mighty Oaks, of which I am one. Ed).

Despite his proposals being subjected to wide spread derision, Eye understands at least one part of the industry has welcomed Williamson's 'bold and exciting' initiative.

Step foward the Roscos, who are expecting a bumper bonanza as all those displaced vehicles are hurriedly pressed into gender specific service!

Shaken and stirred: Paul Francis

This from the Rail Forum...

Announcement from Rail Forum chair, Paul Francis:

"Some of you may be aware that I have announced my forthcoming retirement as CEO of Porterbrook Leasing.

“This will not take place immediately and therefore it is my intention, subject to the agreement of the RFEM executive, to continue as Rail Forum Chairman until our 2018 AGM.

“These are exciting times for our industry and especially the rail supply chain in the East Midlands, I want to continue as your Chairman so that we can work with government and regional stakeholders to capitalise on the huge investment that is being poured into both Classic and High Speed Rail, as well as the opportunities created through Brexit...

“I have no immediate date for leaving Porterbrook as I will be working very closely with Porterbrook’s Chairman and shareholders in the coming months as we appoint a successor as CEO. I will of course provide a further update once the name of my successor at Porterbrook has been announced.”

Interesting.

What is that sound?

That is the sound of industry CVs being polished.

Roscos and RMT make unlikely bedfellows

This from the Brothers!

Anyone care to tell RMT the difference between classes 707 and 458?

What's 'hundreds of millions of pounds' between friends?

Good to see partnership is alive and well on the LNW Route!

Apparently Beardie Rail is threatening to take NR to court over poor performance.

According to Virgin Rail's CEO, Tony Collins, in the FT...

“We have been trying to work with Network Rail to sort things out but this has been going on for 15 years and we have been left with no alternative,” he said, adding that it was damaging the Virgin brand.

Errr...

No matter.

Meanwhile in the Birmingham Mail Collins is quoted as saying
 
“We have spent hundreds of millions of pounds on a fleet of reliable trains and we pay NR nearly £200 million a year to maintain the West Coast line for us. We feel that we are not getting value for money in this respect and our customers have been let down and deserve more consistency.”

Virgin has spent 'hundreds of millions of pounds' on its train fleet, eh?

Who knew?

Pity the poor old Rolling Stock Leasing Companies!

In Beardie World they now assume the mantle of Trotsky - suitable only for being air-brushed out of history.

UPDATE: This from Steve Strong...

Virgin obviously shares the same view of Roscos as the DfT.

Perhaps this explains the recent rapprochement?

Haines joins Eversholt as Non-Exec

This from Eversholt...

Eversholt Rail appoints Non-Executive Director

Eversholt Rail is pleased to announce the appointment of Andrew Haines as a non-executive director. He will join the Board on 1st January 2013.

Andrew is Chief Executive of the Civil Aviation Authority, a role he has held since August 2009.  He previously spent 23 years working within the railway Industry in a number of roles including Managing Director of South West Trains and Head of FirstGroup’s Rail Division.

Graham Love, non-executive chairman of Eversholt Rail, said: “We are looking forward to welcoming Andrew onto the Board and working with him. His wealth of experience will provide us with an invaluable insight in helping to meet the needs of our customers”.
 
So that looks like Hainesy ruled out for DG Rail!

Hard Times - No 94

Good to see the train leasing market acting as a barometer for industry confidence.

So Eye wonders if readers can guess which ROSCO commercial director at yesterday's RfG Christmas Lunch didn't even bother bringing any business cards?

Hard times indeed.

Macquarie enters Rosco market

This from Macquarie

Macquarie Acquires Rolling Stock Business From Lloyds, Launches New Rail Business

Macquarie Group has launched a new rail business, Macquarie European Rail, and agreed to acquire a European rolling stock leasing business from Lloyds Banking Group.

It has acquired from Lloyds a fleet of rolling stock leased to the franchisee of the Stansted Express airport rail service, and also a rail freight portfolio of locomotives and wagons under operating lease to two operators in the United Kingdom.

The deal also involves the acquisition of a continental European rail freight and passenger portfolio of locomotives, passenger trains and wagons on operating lease to operators in Europe.

For those interested in such things this involves CB Rail (the continental rolling stock lessor), the Stansted Express Electrostar (cl379) fleet and some UK freight assets (including some 66s, the Class 70s and wagons).

What is unclear at the moment is whether this deal includes the Cross Country and West Coast Voyager fleets?

Porterbrook - Bringing home the bratwurst!

This from Tommy Atkins...

Exciting news from the nation's favourite ROSCO...

Porterbrook Leasing has signed a contract with LNWR to repaint 72 Class 150/2 vehicles operated by Arriva Trains Wales, valued at £1M

With franchising stalled this is indeed good news for the UK's increasingly beleaguered rolling stock supply chain!

But what's this?

The 150/2s are operated by Arriva Trains Wales - part of Arriva - owned by Deutsche Bahn.

They will be repainted by LNWR - owned by Arriva - part of Deutsche Bahn.

And the job is being funded by Porterbrook - part-owned by Deutsche Bank.

Deutschland über alles indeed!

Government parks tanks on ROSCOs front lawn

This from Virginia Water...

According to the Pink-un yesterday:

The £1bn order for new trains for the Crossrail east-west London rail line will be among the first recipients of a government guarantee designed to revive investment in essential infrastructure, Danny Alexander will announce on Tuesday.

Your exam questions for today are therefore;

1. This guarantee is being offered to reduce the lease payments and hence long term rail subsidy bill.  On that basis, why doesn't the Treasury and DfT offer this finance to all future rolling stock deals?

2. If Treasury/DfT is guaranteeing all rolling stock, why not just RAB finance the lot?

3. What are the implications for the as yet unsigned Thameslink order? and

4. What does this mean for the future of the ROSCOs?

Privitisation is dead. Long live state intervention!

UPDATE: This from Steve Strong...

Surely the deeply unpopular LibDems don't propose using this finance method to pay for the Thameslink fleet which will be built entirely in Germany?

Or the Crossrail fleet which will no doubt be manufactured in Japan and ahem... 'assembled' by three men and a dog at Newton Aycliffe.

Good to see taxpayers money being used to export skilled jobs overseas!

New passenger ROSCO enters market!

Exciting news for fans of the Rolling Stock Library!

A brief perusal this morning showed the entire Southern 313 fleet had transferred to Beacon Rail.

Just fancy that.

ROSCOs show great minds think alike

Exciting news from the febrile land of Bowtie, Bow-tie and Glasses!

According to The Drum...

Angel Trains is launching a new marketing campaign as it looks to raise its profile in the rail industry.

The train leasing company is working with Leeds agency Brass on a campaign which includes press advertising, PR and internal communications.

A series of ads featuring real Angel Trains employees are now running in rail industry titles.

Kevin Tribley, chief operating officer at Angel Trains, said: "The unique campaign features Angel Trains people and examples of their excellence."

Angel is to be congratulated for breaking the mould and giving the nasty ROSCOs a human face with its 'unique campaign'.

But what's this?

Porterbrook ran a remarkably similar series of ads, focusing on its people, way back in 2004!


Eye wonders if these two campaigns are perhaps related?

UPDATE: This from a Mr Phil Haigh...

Perhaps the Fact Compiler should speak to his nemesis, the soi disant 'veteran observer' and one time ROSCO PR monkey, to confirm whether the two are linked?

I understand they may be related! (Shurely shome mishtake? Ed)

UPDATE: This from Ithuiel...

Oh no, not more soft PR from the ROSCOs seeking to be understood, if not loved and admired.

Don't they realise that the only thing government understands is superior force and if they stood up and fought their corner on issues like DDA and IEP we'd all be a lot better off.

The same goes for the lily livered franchise owners

UPDATE: This from Captain Deltic...

How about an advertisement aimed at generating new business?

A photo of a Pendolino with the tag line:

"£20,000 less per vehicle per month than IEP - you know it makes sense".

UPDATE: This from Leo Pink...

Perhaps all those involved in such vanity advertising might like to consider the following famous quote about corporate advertising:

"It's like peeing down your trouser leg. No one knows you are doing it but it gives you a warm feeling"

Osborne calls a halt to rolling stock deals?

This from Sir Roderick Orr-Watt...

I was delighted to see in this morning's FT that young Osborne has listened to the concerns of the Treasury Select Committee and the National Audit Office and is launching a 'fundamental review' of the way public projects are funded .

I can only concur with the view of Jesse Norman, a member of the Select committee, who told the FT: 'This is the end of PFI as we know it'.


With the financiers of the Thameslink rolling stock deal demanding high returns for the funding package one can only hope that Osborne will place Thameslink fleet procurement on immediate hold, as well as that for the even more expensive Intercity Express Programme. That is, if Justine Greening, who I mentored during her MBA at the London Business School and who is bringing a welcome breath of Yorkshire common sense to Marsham Street, doesn't do it off her own bat.

As a non-executive director of Angerholt Leasing I am confident that all the rolling stock companies are ready, willing and able to to provide the private funding and take on the risk through conventional operating leases, which have served the rolling stock market so well since privatisation.

Meanwhile, my colleagues and I will of course respond graciously when the new Transport Secretary initiates the long overdue rapprochement with the Roscos.

UPDATE: This from Leo Pink...

Is Eye's contributor above the same as 'Bonkers' Orr-Watt, who as a young finance whiz was responsible for the 'Bidwatch' section in Modern Railways during the early days of passenger rail franchising?

If so, I am not surprised to see that he has subsequently flourished since he brought a refreshingly unstuffy and lightly worn expertise to the interminable pages of Informed Sources.

UPDATE: This from a Mr Tony Miles...

Oh dear.

This won't please politicos in the North West awaiting the wiring of the Manchester - Liverpool route. As they are already due to wait at least 2 years after the wires go live for cascaded rolling stock, a further delay on releasing exThameslink trains will have them up in arms.

Of course an initial fleet of 9 x 4-car Class 317/7 sets is due to become available in February 2012, released by Abellio Greater Anglia. Once these have been put through a heavy overhaul to make them PRM-TSI compliant they will be ready to start work in 2014 for Northern Rail.

As that franchise is 50% owned by Abellio does that mean the Cloggies have already developed their own Rolling Stock Strategy?

Lookalike - Rosco liveries

HSBC's Eversholt sold - Banks out!

This from AltAssets.com...

A consortium of infrastructure investors has acquired UK rolling stock company Eversholt Rail Group from banking group HSBC.

Comprising 3i Infrastructure, Morgan Stanley Infrastructure Partners and STAR Capital Partners, the consortium is to acquire the whole group, which owns one third of UK rolling stock, in a deal valuing it at £2.1bn (€2.4bn). The payment is to be made with a mix of debt and equity.

None of the three major Roscos is now owned by a bank.

Eye wonders how much new trains will now cost?

Bankingballs - Financing the ugly sisters

Good to see that the state owned banking sector is not averse to a bit of historical airbrushing.

The latest issue of RAIL carries an ad celebrating the "solutions and expertise offered by Lloyds TSB Corporate Markets" in helping finance 20 Class 70 locos for Freightliner.


But what's this?

Eye's man in the red braces sneers:

"The GE/Freightliner deal was done by HBOS and by people who left HBOS before Lloyds took over."

Please remember the value of your marketing can go down as well as up.

Eversholt sale update

This from Reuters...

AMSTERDAM (Reuters) - CVC Capital Partners and a consortium of Morgan Stanley Infrastructure, 3i Infrastructure and Star Capital have made indicative offers in the 2 billion pound ($3.1 billion) auction of HSBC's rolling stock firm, several people familiar with the matter said.

Looks like another nail in the coffin for investment in new rolling stock.

UPDATE: This from Gordon Gecko..

In fact the staple debt linked to the Eversholt sale reportedly includes £200 million for capital investment.

And DfT won't be able to afford the lease rentals on new trains after May 6 so the HLOS 1300 is nearer 700.

But no new trains means a lot more refurbishment, re-engineering and life extension.

We guys in red braces call it 'polishing the assets'.

Pssst - want to buy a Rosco, going cheap

So HSBC is still trying to flog its rolling stock leasing division (Rosco).

This from Project Finance Magazine:

Bidding consortia are forming for the sale of HSBC's UK rolling stock portfolio. The bank, which owns around a quarter of the UK's rolling stock, is said to be putting together a staple financing, where the seller offers a pre-packaged acquisition finance plan to potential buyers.

As HSBC Rail (nee Eversholt) was originally set up to be the electric train Rosco the decision to increase the number of route miles under the wires must add something to its potential value.

Although the greatest risk to HSBC's fleet portfolio was DafTs insane idea to seek early replacement of the highly reliable East Coast IC225 fleet with the Frankenstein Train.

But as the IEP is now hurtling to oblivion, bidders must be queuing up to take a punt.

Angel appoints Rowlands as Chairman - Doomed

Telegrammed by the Raver
So Sir David Rowlands has become Chairman of Angel Trains.


What a busy life he leads!

How he packs it all in we will never know.

According to Angel's puff piece Rowlands is also:

...chairman of London Gatwick Airport... a member of the Royal Automobile Club Foundation’s public policy committee... a governor of Anglia Ruskin University and deputy chairman of The Lifeboat Fund, a public service charity.

Not forgetting of course his current position as non-executive Chairman of High Speed 2 - a role he relinquishes in February this year.

Strange that a man who tried to squeeze the rail industry when he was Permanent Secretary at the Department now seems to be profiting from it in all sorts of ways.

Nice work if you can get it.

UPDATE: This from Sir Humphrey Beeching...

The Raver appears to have omitted Sir David's great gift for PR and media relations.

Why only last September he managed to infuriate RAIL by issuing a statement denying a story that his own staff had briefed out to the media.

Angel's loss will surely be HS2's gain!