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New standards in rail transport - for finance too

There have recently been important legal developments in the rail sector.

New instruments are emerging to develop financing and cooperation between stakeholders.

Financing rolling stock has always been a constraint for rail developers. The market is still underpinned by public funding and public procurement, with less room for private funding (with the exception of lessors).

A breakthrough was announced in March 2024: the Luxembourg Rail Protocol came into force (*). This protocol supplements the Cape Town Convention of 2001 and aims to facilitate and secure the international financing of rolling stock.

This new standard may seem far removed from day-to-day rail operations. In fact, the growth in the number of trains should lead to an increase in rail operations – which will require more legal/contractual tools.

This represents an opportunity for the rail sector to assess the new legal requirements arising from increased activity.

(*) LUXEMBOURG PROTOCOL TO THE CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT ON MATTERS SPECIFIC TO RAILWAY ROLLING STOCK, signed on 23 February 2007 and entered into force on 9 March 2024.