The project supports 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.
The financing will enable Medway OFM to expand its fleet through Medway Rosco’s acquisition of 16 electric locomotives and 113 intermodal wagons, contributing to the expansion of rail freight transport services and enabling a modal shift from road to rail.
Moreover, the project supports the development of electric rail transport, a zero direct emissions transport technology, and will facilitate cross-border traffic as well as inter-modality (movement of containers by successive modes of transportation), thus improving the effectiveness of freight transport chains.
The new locomotives will provide additional capacity of around 1.5 billion ton-km (equivalent to approximately 54% of the overall rail freight market in Portugal) for new services that could include the transport of lithium, wood, chemicals, and other products as well as new regular container lines from the port of Sines to various destinations across the Iberian Peninsula.
The new services offered by Medway OFM will predominantly target less developed or transition regions in Spain and Portugal, thus contributing to strengthening the European Union's economic, social, and territorial cohesion objectives and promoting sustainable transport.
“The EIB is strongly committed to supporting sustainable transport and fostering cohesion, promoting competition across Europe. The new locomotives and intermodal wagons will improve interconnectivity within Spain and Portugal while reducing traffic, pollution, and transport costs. As the EU climate bank, we are applying our knowledge and experience in the rail sector and project finance structures to successfully implement such operations to the great benefit of the people of Spain and Portugal,” said EIB vice-president Ricardo Mourinho Félix.
“This investment reflects Medway's commitment to improving its activity and efficiency, to meet not only the challenging expansion program in which we are involved, but also the demands of decarbonization and sustainable economy, as well as the needs of our customers and the entire logistics industry,” added Medway president Carlos Vasconcelos.
The EIB is co-financing this operation with Banco Santander Totta, the Portuguese subsidiary of Banco Santander, based on a project finance structure.