The Railroad Association of South Africa has urged the Economic Commission for Africa to impress it on African governments the need to adopt the Luxembourg protocol for financing of rolling stocks.
The association made the position known at an event organised by ECA.In a series of tweets ,the Executive Secretary of the Association, Mesela Nhlapo listed a declaration adopted at the event as follows:
Mindful that the African Continent has a continuing shortfall in investment in transport infrastructure;
Recognizing that railways constitute an efficient and environmentally sustainable way of moving people and goods within individual African states and across the continent;
Acknowledging that African states are committed to modernizing and expanding the existing national and regional rail networks;
Mindful that, under relevant African Union guidelines, new African rail networks should ideally be constructed using the standard gauge, measuring 1,435mm, which will require states or state owned enterprises to make major new investments in rolling stock;
Recalling that states or state owned or private rail operating companies will incur considerable costs as a consequence of renewing or extending the rail infrastructure and rolling stock and will therefore need to attract substantial pvt capital and foreign investment;
Recognizing that the African rail system will need to be operated as cost effectively as possible;
Noting that, to date, more than 20 African states have become party to the convention on International Interest in Mobile;
Equipment and its protocol on matters specific to Aircraft Equipment, both of which were adopted at Cape town, South Africa, on 16 November 2001;
Mindful that, as yet, very few African States are fully familiar with the protocol to the convention on International interest in Mobile Equipment on matters specific to Railway Rolling stock ( Luxembourg Rail Protocol);
Calls upon the Economic Commission for Africa to continue, including through its sub regional offices, its awareness raising and advocacy across the continent on the protocol to the convention on International interest in Mobile Equipment on matters specific to rolling stock;
At the earliest opportunity, with a view to elucidating its merits and potential contribution to the financing of rolling stock in rail projects;
Also calls upon the Economic Commission for Africa to inform interested parties from the public sector and private sector across the continent on, and educate them in, the way that private credit and leasing can assist with providing the financial resources;
Necessary to revitalize and expand the African rail network, and the benefits of becoming party to the Luxembourg Rail Protocol.
“The Luxembourg Protocol opens up new capital sources by operating leasing, leading to a larger, more competitive and transparent industry. This will be a game-changer in helping Africa achieve its economic potential.” – Howard Rosen, Chairperson Rail Network Group,had announced at the ECA event.
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