Rolling Stock Leasing
Rolling Stock Leasing: Thirty-five year assets, seven year leases. A leasing company owns trains and never runs one. It buys a fleet against a lease that is…
Thirty-five year assets, seven year leases. Buy trains. Wait for somebody to need them.
A leasing company owns trains and never runs one. It buys a fleet against a lease that is shorter than the asset's life, which means the whole business rests on what happens at the end: a re-lease, a cascade to a quieter route, or a siding. When a contract changes hands the new operator may not want what the old one had, and a fleet coming off lease all at once is thirty vehicles earning nothing and costing storage, insurance and maintenance to keep them serviceable.
- Setup costs
- £50,000,000 to £400,000,000
- Competition
- Low
- Category
- Infrastructure & Utilities
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