Nordic Re-Finance recently acquired 25 RC4 electric locomotives and 25 V5 diesel shunting locomotives, which are scheduled for phased deliveries until mid-2025. The company aims to introduce these assets into the leasing market, adding options for operators seeking established locomotive models at competitive rates.
The decision to expand the RC4 and V5 fleet follows Nordic Re-Finance's previous acquisition of 8 RC4 and 13 V5 locomotives from Green Cargo in 2015. Familiarity with these models, as well as the company's confidence in their performance and reliability when maintained effectively, supports this approach. Both the RC4 and V5 locomotives have an established support network, with drivers and workshops across Sweden well-versed in their operation. Additionally, the availability of spare parts remains robust, as certain units of these models have been decommissioned over the years, ensuring ongoing support for maintenance requirements.
One practical advantage for Nordic Re-Finance in this acquisition strategy lies in the simplified process for assets already approved for operation in Sweden. This approach reduces the challenges associated with importing locomotives from abroad, an alternative route the company has used to grow its fleet in recent years.
Market demand for these locomotive types remains steady, particularly given the economic pressures facing operators. Leasing older locomotives offers a cost-effective alternative to investing in new assets, which often come with a considerably higher price tag. In the case of diesel shunters, the V5 model provides an affordable solution for operators looking to maintain shunting capacity without committing to high initial costs. With no fully emission-free alternatives yet available at a feasible price, leasing V5 units presents an interim option for operators managing shunting tasks until more sustainable solutions become accessible.
This acquisition aligns with Nordic Re-Finance's strategy to support circular economy principles by extending the operational life of existing assets.
"It feels really good that we can ensure that those locomotives aren’t scrapped, it is our contribution to a circular economy saving many CO2-equivalents compared to producing new locomotives,"
says Arvid Haag, fleet manager of Nordic Re-Finance.
Additionally, the company is exploring options for exporting diesel locomotives, particularly to markets in Central and Eastern Europe, where demand for cost-effective solutions persists. Nordic Re-Finance has already deployed locomotives in Poland and Hungary and continues to monitor opportunities for expansion in these regions.
The upcoming European Train Control System (ETCS) implementation in Sweden poses further considerations. While ETCS has been installed on Nordic Re-Finance’s Traxx, ME, and RC4 fleets, certain types in the diesel segment are unlikely to be retrofitted, potentially shortening their operational lifecycle within Sweden. This shift could open further export opportunities as countries in Central and Eastern Europe await comparable ETCS rollouts.
