NORTHRAIL: A new entrant to the leasing market based in Germany, Northrail is a 74:26 joint venture between investment group Paribus and Seehafen Kiel, operator of the Baltic Sea port.

Following an initial capital investment of €25m, Northrail has established a pool of 12 locomotives, with lease agreements already in place for 10. The leasing company is focused purely on the freight sector, and in particular on leasing smaller locos for use in yards, terminals and on industrial railways. 'We believe the demand for these locomotives outstrips the market's current offering', says Northrail's Managing Director Ulrich Krey.

Northrail aims to build a portfolio of around 25 locomotives with a maximum rating of 1 700 kW by mid-2009. One unit is already in operation in Switzerland, and the company believes there are considerable opportunities for leasing to port operators and smaller freight businesses elsewhere in Europe - especially in France, the Netherlands and Scandinavia.

Lease agreements are already in place for 10 Northrail locomotives.