CZ/SK verze

ČD Cargo has obtained a loan from the EIB for the modernization of its fleet and is preparing to launch an intermodal transport project

ČD Cargo has obtained a loan from the EIB for the modernization of its fleet and is preparing to launch an intermodal transport project
photo: Archives/ČD CARGO
30 / 12 / 2020

The major Czech rail freight provider, ČD Cargo, and the European Investment Bank (EIB) have signed a loan agreement amounting to EUR 130 million. The amount is intended for investment in the modernization of the rolling stock, i.e., for the purchase of new electric locomotives.

Thanks to the loan, ČD Cargo will also being able to launch a plan for intermodal transportation. The vehicle fleet of the formerly state-owned company needs to be modernized according to that plan and obsolete non-compliant vehicles to be scrapped. As a result, European interoperability requirements should be met.

There will be 50 new electric locomotives to be bought from the loan. Another 310 locomotives should be upgraded and equipped with a European control system and 140 intermodal trucks should also be purchased.

"We are very pleased to sign our first-ever contract with the EIB. This followed an extensive proceeding that enabled the EU Bank to better understand our company and positively assess its growth potential. Access to long-term financing and exclusive, favorable terms of the EIB loan will enable ČD Cargo to invest in its future with the prospect of sustainable growth," said Tomáš Tóth, the Chairman of the Board of Directors of ČD Cargo.

"Our partnership with ČD Cargo will improve the capacity, safety, and quality of transport services in the Czech Republic, especially through the use of a modern management and security system. By supporting the transition from road to rail, this project will have a positive impact on the environment and thus contribute to supporting the Czech Republic's transition to a low-carbon economy in line with the EIB's recently approved Climate Bank Roadmap and the Czech Republic's Transport Policy Plan,” said Liljana Pavlova, EIB Vice President, in the media.

A grant from the Transport Blending Facility (CEF) could be used to invest in the modernization of the European Rail Traffic Management System (ERTMS). It is intended to support projects that contribute to the environmental sustainability and efficiency of the transport sector in Europe. This procedure is used in cooperation between the European Commission and implementing partners such as the EIB. The assets that will be purchased thanks to this project will be partially used in converging regions within the Czech Republic, however, mainly on the Trans-European Network for Transport (TEN-T).