CD CARGO ROLLING STOCK

Acquisition of up to 50 electric locomotives and 140 freight intermodal wagons, as well as retrofit of around 310 locomotives with the European Train Control System (ETCS).

The new rolling stock will increase the capacity of the Promoter, in particular in terms of intermodal transport and the retrofit of the locomotives with the European Train Control System (ETCS), and will bring them into compliance with the European Railway Traffic Management System (ERTMS) related interoperability requirements of the EU railway system. The project will contribute to increasing the quality of freight rail services in the Czech Republic by providing new rolling stock. The rolling stock is expected to promote more efficient operation, reduce maintenance costs and lower energy consumption. Indirectly, by improving services, rolling stock renewal, predominantly purchase of intermodal (container) wagons, will help railways compete with other modes, particularly road, so as to maintain or improve its modal share. Shifting freight flows from other modes to rail may result in reduced vehicle operation costs, safety and environmental benefits.

The investments proposed under the project do not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive 2014/52/EU amending Directive 2011/92/EU, as manufacturing and use of rail rolling stock is not included in either list. The need of an EIA and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) will be analysed during the appraisal. All else equal, the project is expected to have a positive environmental impact by helping the railways to maintain modal share in key sections of the cargo market that are most appropriately met by rail. EIB assessment of arrangements for the scrapping of dismissed rolling stock will be undertaken as a part of the due diligence process.

The Promoter has been assessed by the EIB as being a public undertaking operating in a liberalised market that is free de jure and de facto and not receiving any public subsidies for its operations, and therefore not subject to EU rules on public procurement or concessions. Notwithstanding the above, any contracts, for which the promoter receives funds from public or EU sources in the amount of a) more than CZK 200,000,000; or (b) above 50% of the value of the relevant contract, will be procured by the Promoter in line with the Public Procurement Act, which transposes the Directives EU/2014/23 and EU2014/24 into the national legislation.