SOUTH AFRICA: The country has ratified the Luxembourg Rail Protocol to the Cape Town Convention on International Interests in Mobile Equipment, which is designed to make it easier for the private sector to finance rolling stock by setting up an international system for recognition of creditor and lessor rights.
South Africa’s instrument of ratification was deposited on January 27 and will become effective on May 1.
Howard Rosen, Chair of the Rail Working Group which oversees implementation of the protocol, said ’this is a game changer for Africa with ratification by the country which has the largest rail system in Africa.
‘It is also an essential part of the open access strategy of the government when new entrants into the market will need to procure and finance rolling stock, now with the support of the Luxembourg Rail Protocol.’
James Holley, CEO of leasing company Traxtion, said ‘what South Africa really needs, now that the country’s historic rail reforms are being implemented, is for the private sector to respond with significant investment. The adoption of the Luxembourg Rail Protocol will increase access to debt and reduce finance costs; it could not have come at a better time.’
The protocol has so far been ratified by the EU, Gabon, Luxembourg, Paraguay, South Africa, Spain and Sweden. It has been signed by France, Germany, Switzerland, Mozambique, Italy and the UK. Adoption is being considered by DR Congo, Kenya, China, Malta, Eswatini, Namibia, Sénégal, Zimbabwe, Ethiopia and Mauritius.
