Rail operators fear delays to upgrades because two thirds of the country's train leasing industry is about to change hands.

Rail operators are concerned that a multibillion-pound programme to
buy much-needed new carriages could be delayed because two thirds of
the country's train leasing industry is about to change hands.

Porterbrook, the train leasing company, has been sold by Abbey to
Deutsche Bank for an estimated £2 billion and details of the deal will
be announced this week. Meanwhile, HSBC has appointed NM Rothschild to
conduct a strategic review of its eight-year-old HSBC Rail business,
which could also lead to a sale.

This year, Angel Trains, which owns the distinctive Pendolino trains
used on the West Coast Main Line, was sold by RBS to the Bab*** &
Brown European Infrastructure fund, an offshoot of the Australian
investment company, for £3.6 billion. Deutsche Bank was one of the
banks that backed the deal.

The Department for Transport is in the process of buying 1,300
carriages to improve capacity for commuters across the rail network.

New carriages are being bought for services that run through London
between Bedford and the South Coast, while additional Pendolino
carriages are being procured for use in 2012 on the Virgin-operated
West Coast Main Line. The department is also about to shortlist
potential manufacturers for between 45 and 55 new Intercity Express
trains that will be brought into service between 2013 and 2018.

“There will be questions about the ability of the new owners to fund
these huge procurement contracts, even though they are underwritten by
the Government,” a rail insider said.

http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article5019210.ece
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