Financier Services

IPEX provides financiers with winning advice and support for all forms of rolling stock and other rail asset transactions.

Technical and Commercial Due Diligence for Rolling Stock and Rail Assets

We combine our technical and commercial engineering expertise in global rail markets with our extensive experience in rolling stock fleet management and strategy, new build rolling stock procurement and existing fleet acquisition transactions.

We utilise our knowledge of new developments and trends in the rolling stock market to advise on funding rates, capital costs, ongoing whole life operational and maintenance costs, and we can guide you through the complex interfaces with railway operations and fixed infrastructure and which prevail upon rolling stock lease arrangements.

We can provide asset valuations, anticipated lease rates and projected competitor indifference rates underpinned with detailed sensitivity analyses that challenge the variables within the model, drawing out and characterising potential investment risks.

We can provide concise analysis and assurance to lender groups through presentations, Q&A sessions and due diligence reports, with appropriate reliance.

We are also highly experienced in assessing contractual frameworks associated with rolling stock procurements including Manufacture and Supply Agreement (MSA), Train Services Agreement (TSA), Technical Support and Spares Supply Agreement (TSSSA), depot access and lease agreements, as well as long-term Manufacturer / Maintainer maintenance collaboration agreements.

Following contract closure and during the manufacturing and fleet introduction phase, we can offer further support including Client’s Representative for risk reviews, design sign-off, first unit inspections, commissioning reviews and through-life asset management.

We develop and work with IPEX mechanics such as:

  • UK and European rolling stock equity shareholders 5-year timetable;
  • Indifference lease rate and sensitivity modelling (used to assess the influence of changes to variables such as capital costs, funding rates and whole life operational costs);
  • IPEX confidential datasets (not publicly available), for benchmarking and guidance on:
    • Capital costs;
    • Funding rates;
    • Barrier costs (i.e. cost to an Operator for introduction of a new / replacement fleet);
    • Operational costs (Variable Usage Charge (VUC), energy, whole-life maintenance);
    • Lease rates for secondary rolling stock market;
    • Projected future fleet upgrading and updating investment costs (to align and comply with new legislation or emerging technology advances);
  • IPEX dataset covering a wide range of fleet compositions, including light rail, EMUs, DMUs, DEMUs, bi-modes, hybrids, locomotives and loco-hauled stock, from both recent and historic rolling stock procurement activities (including both successful and unsuccessful bids);
  • Broad IPEX team experience, providing extensive knowledge and understanding of required technical specifications and potential future upgrading and updating investments required to comply with UK railway standards and legislation;
  • Standard templates and comparators for due diligence reporting and reviewing contractual frameworks such as MSA, TSA, TSSSA and rolling stock leases;
  • Decarbonisation legislation, targets, methods, threats, and opportunities;
  • Fleet secondary market selection tool;
  • Valuation model for single or portfolio fleets;
  • Whole life cost model;
  • TSA benchmarking tool.