In the world’s developed rail markets, up to 60% of rolling stock in operation is leased. GPR Leasing Africa (“GPR Leasing”) aims to replicate this practical infrastructure solution on the African continent and extend the resultant benefits to all rail stakeholders.
GPR Leasing, a joint venture between Grindrod Freight Services and the Fund, was created with the aim of meeting the asset financing requirements of the burgeoning rail market on the African continent. GPR Leasing’s shareholder strength provides key rail stakeholders, including existing and new mining projects, shippers and private and public rail operators, with access to tailored, competitively priced and expandable rolling stock leasing solutions that allow them to focus their cash and funding efforts on core business and service activities.
GPR Leasing offers competitively priced lease rates for the acquisition of locomotives and wagons in partnership with the manufacturers, reducing the upfront rail capital expenditure for any new and existing projects. The technical partnership with Grindrod Locomotives also gives customers access to in-country/regional service and maintenance support for all leased equipment, along with guaranteed minimum locomotive and wagon availability commitments.
Rail rolling stock remains a cost-effective option for freight rail users looking to deleverage their balance sheets and to avoid residual value risk, maintenance and availability issues and any redeployment risk, so that they can focus entirely on their core business activities.