ATC240327: Report of the Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure on the Luxembourg Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock, dated 27 March 2024

NCOP Public Infrastructure & Minister in the Presidency

Report of the Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure on the Luxembourg Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock, dated 27 March 2024:

The Select Committee on Transport, Public Service Administration, Public Works and Infrastructure (“the Select Committee”) received a briefing from the Department of Transport on the strategic focus and objectives on the Luxembourg Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock (“the Luxembourg Protocol”) on 27 March 2024.  

The Luxembourg Protocol is a multilateral treaty that establishes an international, asset-based, financing regime that will enable and reduce the cost of private financing for rail rolling stock. It creates a new world-wide legal framework to recognise and regulate security interests of lenders, lessors and vendors selling under conditional agreements, where each are secured by rolling stock.

The Protocol sets out common international legal rights for funders financing rolling stock, including easing repossession of collateral on debtor default or insolvency, thereby, substantially reducing creditor risk and thus financing costs.

The Select Committee has considered the Protocol against the backdrop of the recommendations of the National Development Plan (NDP), the White Paper on National Rail Policy and the Economic Reconstruction and Recovery Plan (ERRP), which direct greater private sector participation.

Having considered the request for approval by Parliament of the Luxembourg Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock, referred to it, the Select Committee recommends that the Council, in terms of section 231(2) of the Constitution, 1996, approve the said Protocol.

Report to be considered.