1 Feb 2010

NIB finances locomotives of a greener future

NIB has provided a loan totalling EUR 30 million to Sweden’s Green Cargo for the upgrade of 104 locomotives. The project will reduce the locomotives’ fuel consumption and increase their working life by approximately 20 years at just one-third of the cost of comparable new locomotives. The overhaul will also improve the drivers’ working environment.

“Rail is the mode of transport for the future. It inflicts minimal harm on the environment, is safe and efficient. Financing the Green Cargo infrastructure investment will ensure that member country businesses have access to a reliable railway cargo service and a commercially competitive alternative to air and road transport,” says Johnny Åkerholm NIB President and CEO.

The locomotives are being totally rebuilt. The 42 electrically powered locomotives will get new steering systems and modernised cabin interiors. The engines of the 62 diesel locomotives will be replaced which will lead to a decrease in emissions of NOx and particles. Due to improved energy efficiency, emissions of carbon dioxide are expected to decrease by some 20%.

The renovation will strengthen Green Cargo’s position within the sector. While Green Cargo is the largest among the very few service providers in the sector, market demand for new, high quality products is increasing and the competition for tracks is growing.

Green Cargo is a new customer with the Bank and has a strong environmental profile.

Founded in 2001, Green Cargo is a national and international logistics company, wholly owned by the Swedish state. The company has some 3,000 employees and a rail network covering Sweden and parts of Norway. Other parts of Europe are reached through partners. More than 90% of the goods it transports are carried on electrically powered trains.

The Nordic Investment Bank is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. NIB has the highest possible credit rating, AAA/aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact

Mr Ulf Westergård, Senior Manager, Origination, at +358 10 618 0234,

Ms Nina Monsen, Communications Specialist, at +358 10 618 0291,