GoVolta Budget Train Faces Launch Delay Over Funding Issues

Dutch start-up GoVolta budget train cancels services to Berlin, Copenhagen, and Basel. Financial hurdles force the company to rethink its affordable rail plans. This is reported by the railway transport news portal Railway Supply.

GoVolta Budget Train Hits Financial Roadblock

Entrepreneurs Hessel Winkelman and Maarten Bastian delay GoVolta’s launch in late 2023. They target affordable daytime trains across Europe with tickets at just $10.81 (€10).

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Retailers like Kruidvat, Albert Heijn, and Hema show interest in selling tickets quickly. However, GoVolta sells 70% of tickets in advance but struggles with funding.

Subcontractor disputes and licensing issues challenge GoVolta’s bold vision from the beginning. Still, the team negotiates financing for carriages with Rabobank to move forward.

Rabobank initially discusses funding for carriages costing $7.57 million (€7m) with GoVolta. After eight months, the bank rejects the loan and calls it too risky.

Winkelman orders valuation reports and sets up new firms to push the project. Despite these steps, Rabobank’s decision stops progress on securing essential rolling stock.

GoVolta Budget Train Pivots to New Opportunities

GoVolta secures $25.94 million (€24m) to buy five Siemens Vectron locomotives for operations. The company also plans to expand this investment next year confidently.

Beyond its own routes, GoVolta aims to lease locomotives to other operators soon. Several firms express interest in this service, creating a new revenue stream.

NS International currently runs all international trains from the Netherlands with partners. Eurostar, Deutsche Bahn, and NMBS/SNCB team up with NS, dominating the market.

GoVolta’s affordable train dream pauses, but Winkelman stays hopeful about future prospects. Financial setbacks test the team, yet they adapt and explore fresh options.

This delay affects travelers seeking cheap trips to Berlin, Copenhagen, and Basel soon. For now, GoVolta shifts focus to locomotive leasing and rebuilding its strategy.

Affordable rail travel in Europe gains traction, yet funding remains a major obstacle. The GoVolta budget train story shows start-ups’ struggles in shaking up transport.

Optimism lingers as GoVolta pivots to use its locomotives for other operators’ benefit. Meanwhile, the company regroups and plans to relaunch its vision later.

Travelers await news, because $10.81 tickets promise a revolution in rail access. Until funding aligns, GoVolta balances setbacks with smart moves to remain competitive.

Source: www.railway-technology.com

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