CFCL Australia has entered into a joint venture with specialist in asset financing Allco Finance Group and investment company Record Investments to launch a loco and rolling stock leasing business.

Allco CFCLA Freight Rail Leasing JV aims to raise A$70m towards capital investment in locos and stock during its first year, with a projected value of A$200m in three years.

Holding a 50% stake in the joint venture, CFCLA is the Australian subsidiary of Chicago Freight Car Leasing Co, which has built up an A$140m portfolio of over 65 locos and 850 wagons during the past six years. Allco will act as financial manager of the joint venture, with CFCLA responsible for marketing and asset management.