Projects

Rail First

Transport and Logistics

Rail First is Australia’s leading provider of rollingstock solutions to the rail industry, owning the country’s third largest intermodal fleet of more than 1,300 locomotives and wagons.

Sector

Transport and Logistics

Location

Sydney and Adelaide, Australia

Status

Operational

Equity ownership

50%

financial close

September 2022

Term Length

n/a

About

Rail First Asset Management (‘Rail First’) is Australia’s leading provider of rolling stock solutions to the rail industry owning the country’s third largest intermodal fleet of more than 1,300 locomotives and wagons. Rail First provides a full-service offering including locomotive and wagon leasing and rolling stock overhaul and repair. It has long-term lease agreements with rail operators and is Australia’s only domestic manufacturer of intermodal rail wagons, providing the unique ability to meet individual customer requirements with a ‘build to lease’ offering.

Rail First has an important role to play in enabling the modal shift from road to rail, meaning sustainability is embedded at the core of the business.

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Key impacts and benefits

Rolling stock assets

AUD$ 0 M

Locomotives and wagons

0,0

Australia’s First Freight Green Loan

AUD 0 M

Why we invested

Rail First presented an opportunity to acquire a market leading essential rolling stock infrastructure platform in Australia, servicing a portfolio of blue-chip clients on long-term contracts with a significant asset base.

Intermodal end market exposure: Attractive and predictable growth in Rail First’s core market of intermodal rail freight driving long-term demand for rolling stock
Provider of essential infrastructure: Market leader of essential transport infrastructure provider, with low levels of leasing penetration in the Australian market
Significant barriers to entry: Leadership position entrenched by significant barriers to entry and strong invested asset base
Blue chip client base: Blue-chip client base on and exposure to diverse end markets
Management capability: Highly experienced and incentivised management team

Sustainable Development Goals (SDGs)

2030 Agenda for Sustainable Development adopted by UN Member States in 2015

SDGs supported:

SDG contribution

Outcomes

Green loan: Awarded Australia’s first freight Green Loan accreditation for a AUD 125m tranche, recognising its sustainability and local manufacturing credentials
Leadership: Strengthening the current leadership team with the hiring of a new Chief Executive Officer in December 2023
Freight decarbonisation: Ability to deploy follow-on capital, leveraging favourable macroeconomic and ESG tailwinds that support a transition from freight currently

Rail First

About

Why we invested

Sustainable Development Goals (SDGs)

Outcomes

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