The European Investment Bank (EIB), the EU’s own development bank, has completed the final tranche of the 4.4b DKK (€600m) loan to DSB to part-finance the purchase of new trains.
The project will finance the acquisition of new rolling stock (expected to be of minimum 100 electric multiple units) and associated equipment for the to replace existing outdated trains. It will replace the current diesel-power trains currently run on the inter-city network, which in turn, are to be scrapped. The full justification being put forward to the replacement of the trains is that the old diesel vehicles are at the end of their economic life, do not meet the current passengers expectations of performance and comfort, and are a deterrent for those who would potentially switch from private car to rail. In addition, in the absence of such investment, the existing rail service quality would further deteriorate and encourage the use of private cars.
The replacement of the existing trains will allow to improve the service and meet future requirements. The new fleets will comply with all relevant technical specifications for interoperability: they will be more comfortable, energy-efficient and produce less carbon emissions.
DSB (Danske Statsbaner) operates some (though not all) trains in Denmark on the railways run by Banedanmark.
The loan that the EIB is providing DSB amounts to approximately 4.4b DKK (€600m), which contributes to the full cost of the new fleet of trains that will cost some 9.9b DKK (€1.3b).
The loan from the EIB to DSB will be repaid over a 25-year period.
More information is available on the EIB’s website here.