When British Rail was privatised, Porterbrook bought approximately one third of the total UK passenger rolling stock fleet. It currently leases rolling stock to 17 of the 24 UK passenger train operating companies, and the principal UK freight operating companies.
Porterbrook's rolling stock fleet of over 5,500 vehicles includes electric and diesel locomotives, high speed trains, multiple units and freight wagons.
Since 1996, Porterbrook has invested in over 2600 new vehicles with a total value of over £1.5 billion.
As well as investing in new trains, Porterbrook finances the refurbishment and upgrading of existing stock to modern standards, and has already invested £200m in this process. The result: enhanced passenger safety and comfort, creating the effect of brand new trains thereby extending the operational life of the equipment.
Porterbrook is also able to purchase existing fleets, freeing up capital, and lease them back either in their current condition or refurbished.
Originally established to operate in the rail passenger market, Porterbrook quickly took the opportunity to expand into rail freight which clearly needed investment to modernise an ageing fleet. Soon after privatisation, Porterbrook undertook a purchase and leaseback arrangement on a freight fleet of 345 wagons and 70 locomotives. Since then, it has secured leases with the principal freight operating companies.
Porterbrook anticipates that older rolling stock will not only continue to be replaced but that the freight market will also expand. This expansion is being driven by the desire to move freight off the roads and onto the rail network.
Rail freight operators seek innovative financing methods to update, expand or refurbish their fleets, and to free up capital by selling fleets to financiers and leasing them back. At the same time, investment can be made in the fleet to fully refurbish or modify it to extend its operational life, offering a competitive alternative to buying new equipment. Porterbrook's experience supported by Abbey's expertise and financial strength means that it can supply tailor-made, flexible financing solutions to the rail freight industry in all these areas.