The Financial Realities of Leasing Trains: The British Experience

This paper reviews the financial performance of Great Britain’s train leasing model, which is a key feature of the privatization regime. It also reviews the investment in new trains and assesses the key degree to which the leasing model has produced the promised benefits and to whom. The financial analysis has born out the limited research evidence that is available on the use of private finance in rail. The paper shows that the rolling stock companies were given a generous leasing regime at privatization that guaranteed a risk free income. In short, far from levering in private finance, the leasing mode has benefited the rolling stock companies and their providers of finance at the expense of rail passengers and tax payers, past, present and future, and as such, does provide a rational solution to the problem of financing new investment.


  • English

Media Info

  • Media Type: Print
  • Edition: First Edition
  • Features: References; Tables;
  • Pagination: pp 797-817
  • Monograph Title: Competition and Ownership in Land Transport Passenger Transport

Subject/Index Terms

Filing Info

  • Accession Number: 01051388
  • Record Type: Publication
  • ISBN: 9780080450957
  • Files: TRIS
  • Created Date: Jun 11 2007 11:52AM