Costs and regulations are driving replacement of ageing locos

Frost & Sullivan’s new “Strategic Analysis of Alternative Powertrain Technologies in the European Diesel Locomotive and Railcar Market”, finds that 10,862 diesel locomotives and 9,314 diesel railcars (new orders and replacements combined) are expected to be delivered by 2020 across Europe.

“The increasing operational and maintenance costs of an ageing fleet are pushing operators to place orders for new rolling stock, allowing for the replacement of locomotives and railcars that are close to retirement,” notes Frost & Sullivan research analyst Shyam Raman. The analysis has identified 2,326 diesel locomotives in France and Germany alone that are nearing or have crossed 40 years of service.”

The average age of all diesel locomotives in France, Germany, Italy, Spain and the UK is approximately 37 years. There are 10,298 diesel locomotives in these countries that have been in active service for more than 30 years. As fuel costs have risen sharply in recent years, operators and leasing companies are aiming to procure the most energy-efficient and economic rolling stock in their fleet.