The Hindu Business Line : HSBC Rail eyes India

HSBC Rail is one of the three primary rolling stock companies in the fragmented rail industry in the UK - the other two being Angel Train Contracts and Porterbrook.

The companies own rolling stock and lease them out to train-operating companies in UK. There are over 20 train operating companies in the UK.

Speaking to Business Line recently, Mr Paul Tweedale, Head of Risk and Product Development, HSBC Rail (UK), said, "We are interested in looking at the Indian market."

HSBC Rail is exploring various options including whether it can help set up an organisation on similar lines in India. "We are already in talks with the Indian Railway Finance Corporation (IRFC)," said Mr Tweedale. IRFC is the finance mobilising arm of the Indian Railways. It finances almost half of the rolling stock owned by the Indian Railways by leasing them out to the Railways.

Indicating that HSBC Rail is open to enter the rolling stock leasing sector to service the Indian Railways as well as the private container operators who would have their demand for rolling stock, Mr Tweedale said, "The operator can be any one - the national railways or the private operators."

On being asked whether HSBC is in talks with any private container operator in India at present, Mr Tweedale replied in negative.

High growth

The demand for rolling stock is expected to witness high growth in the coming years, driven by demand from the Indian Railways, the private sector and container operators.

Srei Infrastructure Finance Ltd (SIFL), an Indian infrastructure-leasing firm, is eyeing the railway sector and plans Rs 1,000 crore investment in rail wagons this fiscal. "We envisage demand for wagons valued at Rs 4,500 crore over the next three years from the container operators. Moreover, demand for wagons worth Rs 500-750 crore is likely to come from private players under the wagon investment scheme," said Mr Mohanjit Singh, Vice-President, Infrastructure and Project Finance, SIFL.