gunnercooke advises Beacon Rail on release of fleet to ScotRail

gunnercooke Rail and Asset Finance Partner, Clive Smith, has advised Beacon Rail on the overhaul, refurbishment and subsequent re-leasing of its fleet of 22 x 5-car Class 222 diesel electric multiple units, for operation by ScotRail, as part of an £80m project for the replacement of the current Scottish Intercity fleet.

The project will see the Class 222 units redeployed across Scotland’s intercity rail network, replacing the High-Speed Train (HST) fleet on routes between Glasgow, Edinburgh, Aberdeen and Inverness. The Class 222s are currently operated by East Midlands Railway, but are being phased-out following the introduction of new rolling stock.

Six units will initially be made available to ScotRail to support driver training and asset familiarisation ahead of the full overhaul, refurbishment and systems-upgrade programme worth £80m, to be undertaken by the fleet’s original manufacturer, ALSTOM.

Following completion, the refurbished fleet will be placed on-lease with ScotRail until at least 2036, with further options to extend. The project is supported by a significant capital injection from Beacon Rail alongside £67m of grant funding from the Scottish Government.

gunnercooke advised Beacon Rail on all aspects of the transaction, including all transitional arrangements associated with the staggered redelivery of the fleet by East Midlands Railway, the future leasing arrangements with ScotRail, the placement of the overhaul and refurbishment contract with ALSTOM, the introduction of the Scottish Government’s grant funding investment, and the establishment of spares management arrangements across the fleet.

Partner Clive Smith added: “It has been a privilege to work on this deal, which will lead to major benefits for rail passengers across Scotland.  We congratulate all of the parties involved, and are especially thankful to our client Beacon Rail for the opportunity to support them in securing this successful outcome for all parties.”

You can read more about Clive and his work here.