Project background
The UK transportation market has long been attractive to investors and lenders. The market has a mature background in financing capital projects and transport companies. To a large extent this results from rail privatisation and the widespread growth in PFI and PPP - though this is largely in other sectors. The rail financing market has seen many changes and is far from straight forward. Newer players require knowledge and orientation to inform their strategies and processes.
The client
HSH Nordbank is a strong and rapidly growing European bank with headquarters in Northern Germany. It has an international office network including London and New York and is highly focussed on the transport sector (for example, it is the world’s largest shipping financier). The bank’s ever increasing client portfolio, means it needs to continue strengthening its geographic presence in a number countries and market sectors including the UK and in particular, in the area of transport and logistics and asset finance.
Our role
Strategic Lines were employed by HSH Nordbank to carryout a comprehensive analytical study into the UK rail transport finance market in order to support and confirm key strategic decisions. Sectors covered included, mainline passenger and freight, metros and urban light rail and tramways.
- Design, develop and populate a database of UK transport projects and opportunities.
- Carry out selective joint interviews with leading transport players.
- Review demand levels, market needs and carry out a high level ‘strategic fit’ analysis.
- Prepare report documentation, review findings and conclusions with the HSH transport team.
Team
Strategic Lines team were supported by associate Mike Roebuck.
Status
The results and conclusions of the study have been taken on board by the client and the bank is applying key findings and processes in the formulation of its international business programme.
- Study commenced August 2005
- Feedback interviews during September and October 2005
- Project completion December 2005