Cargounit is the market leader in the Polish locomotive leasing market, which is the second largest rail freight market in Europe. The size of its mixed mainline and shunting rolling stock asset base places it amongst the largest lessors in the European Union.
Upon the acquisition by 3SIIF, a capex-intensive growth strategy was implemented, aiming to replace the legacy rolling stock with modern locomotives which will both serve the needs of existing clients, as their demands increase over time, and expand the customer base by offering new and reliable assets. The investment case is supported by the need to decrease emissions from the cargo transport sector by moving trade flows off trucks and onto rails.
Cargounit’s strong market position and increasingly international client base, thanks to its fleet of multi-system locomotives facilitating cross-border traffic, additionally delivers improved connectivity between Germany, Poland and other countries in CEE. The company is also enhancing its presence in Romania, with a growing number of modern assets specifically dedicated to that market.
Why we invested
- Largest locomotive lessor in CEE with key client relationships
- Comprehensive existing asset base primed for expansion
- Provided an excellent platform for fleet renewal, both contributing to the modal shift of cargo to rail and increasing reliability
- Significant locomotive expansion plan supported by a policy of increasing rail utilisation rather than road transportation driving market growth
Outcomes
Expansion of the business to operate in other Three Seas countries will also play a part in increasing connectivity in the region as well as enhancing the efficient transportation of freight by rail. The company expects to invest heavily in new multi-system locomotives able to operate cross border.
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