EIB awards €500m loan to Danish State Railways for green fleet modernization program

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Danske Statsbaner (Danish State Railways) has finalized a 25-year €500m (US$564m) lending agreement with the European Investment Bank (EIB) for the acquisition of new electric trainsets as it continues its green transition.

DSB’s IC3 trains were first introduced in 1990. Image credit: Tomasz Sienicki (tsca)
DSB’s IC3 trains were first introduced in 1990. Image credit: Tomasz Sienicki (tsca)

The Danish railway company will acquire 100 new electric multiple units, replacing ageing diesel-powered trains (IC3 and IC4 models). The modernization of its fleet will allow DSB to accommodate the anticipated future growth in passenger traffic, replace older train sets and meet future demand for more services with better quality and reliability.

“The new electric trainsets will be the backbone of future public transportation in Denmark and the investment is a significant contribution to the green transition of Danish society,” said Flemming Jensen, CEO of DSB.

By replacing diesel-powered trains with electric units, the lending agreement falls within the framework of DSB’s environmental policy and its strategic “fremtidens tog” (train of the future) program to future proof rail traffic in Denmark. The trains will primarily be used on the Danish core network, connecting Jutland with the Copenhagen region, while part of the rolling stock will also serve the Sjᴂlland region.

“I am pleased the EIB has been able to support DSB in making this sustainable transition, replacing existing diesel with clean efficient electric rolling stock,” said EIB vice-president Christian Kettel Thomsen. “We should not underestimate the importance and contribution of rail traffic to limiting the impact of climate change. The quality of services and comfort of trains are important factors in encouraging people to shift away from commuting by car to using public transport.”

The news follows the announcement that EIB has signed a €45m (US$51m) agreement with Medway Rosco for the expansion of rail freight transport services in Portugal and Spain, including cross-border services, thus enabling more efficient supply chains in the two countries.