INTERNATIONAL: The Luxembourg Rail Protocol to the Cape Town Convention on International Interests in Mobile Equipment is to enter into force in contracting states on March 8 2024, the intergovernmental ratification task force has announced.
The initial contracting states are Luxembourg, Sweden, Spain and Gabon. South Africa and Paraguay may also be included, and several African and European states are expected to adopt the protocol soon.
The Luxembourg Rail Protocol is designed to increase the pool of capital finance available for rolling stock investment by setting out a legal regime for the recognition and enforcement of the rights of lenders, lessors and conditional vendors relating to railway rolling stock. A similar protocol covering the aviation sector has been in operation for some years.
Adoption of the Luxembourg Rail Protocol is promoted by the Rail Working Group, which was established at the request of the International Institute for the Unification of Private Law (UNIDROIT) to represent the position of the rail industry relating to implementation. Adoption is supported by multilateral institutions including the European Union, African Union and the UN Economic Commission for Africa, as well as financial institutions, academics, law firms and rolling stock lessors.
’We are very pleased, after many years of hard work with our friends and partners across the rail industry, to see a firm date set for the entry into force of the Rail Protocol’, said Rail Working Group Chair Howard Rosen on November 20.
‘This excellent news is not, however, an invitation for us to rest. Indeed, technical work remains regarding the operation of the international registry. Equally significantly, considerable educational and advocacy work lies ahead for our team, as we encourage more and more nations to adopt this landmark treaty.’
