Image: VOLKER WEIHBOLD
ELL has signed a contract with Siemens Mobility to purchase up to 200 additional “Vectron” locomotives. Officially there is no word on the contract value, but according to APA information it is worth up to around one billion euros. Delivery will begin in 2025.
ELL, whose owner ELL BidCo Sarl is based in Luxembourg and where Kern took over operational management in September 2022, does not operate passenger trains or freight transport itself, but rather leases its fleet to railway companies. ELL is majority owned by the insurer AXA and Credit Agricole/Predica. The “Vectron” is considered “the” Siemens locomotive. Customers also include ÖBB and Deutsche Bahn.
Locomotives are built in Munich
The locomotives are all built in Munich. But there is an Austro share from Graz: The chassis and pantographs come from Siemens in Graz and are delivered to the Bavarian capital.
However, even before the new deal, Siemens Mobility’s largest locomotive customer was ex-Chancellor Kern’s ELL, which is a large international locomotive lessor. With the new business, in which the tractors will be delivered from 2025, the ELL fleet will grow to more than 400 “Vectron” locomotives. By 2027, ELL will operate at least 301 Siemens Vectron locomotives, making it the largest European Vectron fleet.
In detail, locomotives with different power system equipment variants are now being procured, which will be used in both passenger and freight transport. 60 vehicles will be ordered immediately. Industry experts assume that the financial volume will be around one billion euros if the framework agreement is fully utilized.
“Milestone in corporate development”
“This is a milestone in the company’s development for ELL,” Kern was quoted as saying in a joint release from the two companies. “Our goal is to expand market leadership in the areas of customer friendliness, reliability and efficiency.” The ex-ÖBB boss and politician argues that they are convinced of the future of the railway with “superior climate friendliness and cost-effectiveness on the long international routes”. A structural change in rail freight transport is also making full-service leasing of locomotives a highly attractive business for the future.
Tanja Kienegger, CEO Siemens Mobility Austria: “‘Vectron’ combines sophisticated modern technology with operational flexibility and is therefore ideally suited for use throughout Europe. We intensively support committed railway companies like ELL in achieving their goals. This is how we also achieve one “Contribution to shifting more traffic from the road to environmentally friendly rail and to better protecting our climate.”
Through the agreement, ELL secures the procurement of a wide variety of multi-system locomotives. The “Vectron Dual Mode” is also part of the contract, the companies announced. The core company can equip the vehicles for specific requirements and special areas of application using optional additional packages. It was agreed that Siemens Mobility will support ELL in further building up competence in vehicle operation, maintenance and vehicle maintenance.
Kern also said that ELL is pursuing a consistent zero-emissions strategy. “Our most important assets are a focused fleet policy and a comprehensive service network in more than 30 European locations.” The development partnership with Siemens and the concentration on a uniform locomotive type are an important component in asserting oneself on the market.
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