The Luxembourg Rail Protocol
The Luxembourg Rail Protocol – emerging opportunities
The Luxembourg Rail Protocol – Moving Africa Forward
The Luxembourg Rail Protocol “in a nutshell”
Current News
Professor Sir Royston Goode KC
We are sad to announce the passing yesterday, at the age of 93, of Professor Sir Royston Goode KC, Emeritus Professor of Commercial Law at the University of Oxford and at Queen Mary University of London.
Export credit agencies urged to extend Cape Town discount to rail under the Luxembourg Rail Protocol
Export Credit Agencies (ECAs) from OECD States, at their annual CSO consultation meeting in Paris, were today strongly urged to extend to railway rolling stock the risk premium discount of up to 10% they already provide in relation to aircraft finance where the Cape Town Convention (CTC) applies, as momentum grows behind the Luxembourg Rail Protocol as a tool to support more competitive financing for rail exports.
Key Talking Points
The Protocol creates a new global legal system for the recognition and prioritisation of security interests held by creditors in railway equipment. These interests will be registered in a new international registry, which is searchable by the public 24/7. This makes it possible, for the first time, for all interested parties to easily learn of a creditor’s security interest, and for that creditor to be able to enforce its security in cases of debtor default or insolvency.
Our key task is to press for the implementation of the Luxembourg Rail Protocol in as many countries as quickly as possible but ensuring that the operation of the Protocol does not lose touch with the commercial realities of the rail industry.
The Protocol will introduce a new unique identification system for railway equipment. It applies to all equipment running above, on, or under a permanent guide-way; from high-speed to light rail trains, from freight locomotives and wagons to trams and subways, and from people movers at airports to gantries and cranes running on rails at ports.
The Protocol covers all debtors located in a ratifying state, for example in a financial centre, regardless of the location of the railway equipment. It covers the financing of railway equipment through leases, secured credit agreements and conditional sale contracts.
By securing the creditor, the Protocol will draw in much more, and cheaper, finance from the private sector for railway equipment. This will lead to a more competitive and dynamic rail sector, plus more investment in the industry.
The Protocol should relieve governments, as well as state- and privately owned operators, of the need to allocate precious capital to rolling stock. This is particularly important for developing countries where an extensive and well-functioning rail sector is critical for economic growth.
The RWG
The Protocol should relieve governments, as well as state- and privately owned operators, of the need to allocate precious capital to rolling stock. This is particularly important for developing countries where an extensive and well-functioning rail sector is critical for economic growth.
Participates in seminars and generally promotes the signature and ratification of the Luxembourg Rail Protocol
Issues publications and position papers relating to the Protocol
Acts as a forum for consideration of the practical aspects of the operation of the Luxembourg Rail Protocol by the rail industry
