Company ZUG.SH for Train Leasing and Cost Reduction

Authorities in Schleswig-Holstein, Germany, have made a strategic decision to establish their own train leasing company named ZUG.SH, this is reported by the railway transport news portal Railway Supply.

This initiative aims to reduce financing costs and expand the pool of potential bidders for operating rail transport services.

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The newly established company ZUG.SH has already signed a contract worth 500 million euros to finance the purchase of 42 double-decker Coradia Max electric trains from Alstom.

These trains will be leased to rail service operators Mitte/Süd-West: RE7/70, running between Kiel, Flensburg, and Hamburg, as well as RB 61/71, connecting Wrist, Itzehoe, and Hamburg. Operations are scheduled to start in December 2027.

Schleswig-Holstein’s Transport Secretary, Tobias von der Heide, noted that creating ZUG.SH was a necessary measure.

No financial service provider showed interest in financing the fleet due to high interest rates.

By creating their own leasing company, the region expects to save between 70 to 110 million euros over 30 years.

This will significantly reduce the financial burden on rail companies and attract a broader range of bidders to participate in tenders.

One of the key goals of ZUG.SH is to provide equal opportunities for less capital-intensive rail companies.

“With ZUG.SH, we will continue to ensure that less capital-intensive rail companies can also participate in tenders for building rail networks in the future,” said Tobias von der Heide.

Since new bidders will not need to have their own train fleets or arrange their own financing, this will make participation in projects accessible to a larger number of companies.

Thus, Schleswig-Holstein is making a significant step towards modernizing its transport system, simultaneously supporting competition and reducing the costs of rail transport operations.

The new company ZUG.SH promises to be an important tool for achieving these goals, ensuring sustainable development of the railway infrastructure in the region.

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