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  • [ Case Studies ]
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  • [ Investment management ]

Wales & Borders – Commercial and Contract Management


Challenge
Following the transfer of the Wales & Borders Franchise into public ownership in 2021, SMBC Leasing and Equitix required robust commercial and contract management for their £800m investment in four newly built rolling stock fleets for Transport for Wales. These fleets included:
  • Class 197 CAF Civity DMU
  • Class 398 Battery-Electric Stadler CITYLINK Tram-Trains
  • Class 231 Stadler FLIRT DEMU
  • Class 756 Stadler FLIRT Trimode
The investment was structured through Special Purpose Vehicles (SPVs), requiring strategic oversight and coordination among multiple stakeholders, including lenders, manufacturers, and project teams.
  • Client's profile
    SMBC Leasing (UK) Limited, a subsidiary of Sumitomo Mitsui Financial Group, provides lease, loan, hire purchase, and receivables purchase finance to a global customer base. Equitix is a leading global investor, developer, and long-term fund manager specialising in core infrastructure assets.
Approach
Apex Rail initially supported Equitix as a commercial advisor during the bid stage and subsequently transitioned into the role of Commercial and Contract Manager for the SPVs. Key responsibilities included:
  • Board-Level Reporting: Providing regular updates to SPV directors and lenders on commercial and contractual project status.
  • Stakeholder Coordination: Engaging in discussions with technical advisors, joint project managers, and manufacturer project teams to address commercial and contractual matters.
  • Risk Mitigation & Compliance: Ensuring contractual obligations were met while proactively managing risks associated with fleet delivery and operation.
Results & Impact
  • Effective Investment Oversight: Ensured structured management of the £800m rolling stock investment, aligning commercial strategies with project milestones.
  • Seamless Stakeholder Collaboration: Facilitated efficient communication and issue resolution across project stakeholders, enhancing operational coordination.
  • Robust Contractual Governance: Strengthened compliance and financial oversight, safeguarding the long-term performance of the new Wales & Borders rolling stock.
Through its expertise in commercial and contract management, Apex Rail continues to support the successful deployment and operation of the new Wales & Borders fleets, reinforcing its reputation in complex rail infrastructure investments.
* The images is copyrighted by TfW
Bart van Horssen
Associate Director