Green guarantee backs state-of-the-art rail tech

Hailed as a cornerstone in reducing dependency on fossil-fuelled means of mass transport, railways are enjoying a renaissance. Three quarters of all passenger rail transport activity in the world takes place on electric trains and the rail sector is the only mode of transport that is widely electrified today. High-speed rail has reshaped the transport landscape by offering an alternative to aviation, promoting economic growth, reducing travel times and offering a greener option.

To satisfy the growing demand and to address the substantial backlog of renewals facing the rail infrastructure in many countries, suppliers are investing in new production facilities. One example is found in Hallsberg, Sweden, where switch developer Vossloh is building a state-of-the-art facility that promises the 19th-century innovation a first-class ticket into a greener future.

“New rail tech production facilities are a rare sight these days,” says Bertrand Gryspeert, CEO Vossloh Switch Systems, “But our current facility was built in 1901, and the time was ripe to be the first manufacturer to introduce automation and robotics to rail switch production.”

Of Vossloh’s 1 billion SEK turnover in Sweden, around half is exported. Vossloh has previously cooperated with EKN on railway projects in Türkiye. Ghana and Tanzania are on the list of potential follow-ups. The new facility in Hallsberg offered Vossloh an opportunity to become the first customer to qualify for EKN’s Green Credit Guarantee. “We have done our utmost to ensure that the new factory is compliant with a range of sustainability criteria in line with leading standards,” says Gryspeert adding, “Obviously, we would have done this even if there was no green guarantee on the cards, but getting access to more attractive financing was certainly a nice bonus as it managed to knock one percentage point off the interest rate on the investment loan.”

“Good for business”

Cooperating with EKN’s sustainability team in order to qualify for the green guarantee brought additional benefits, he explains: “We are able to show employees, clients and owners that sustainability is good for business since the guarantee helped us finance the new factory on very attractive terms at a lower total cost. Without the guarantee our financing options would have been fewer and we could not have been able to invest in expansion at the same pace.”

The Green Credit Guarantee facilitates access for exporting companies and their subcontractors to financing investments in the green transition of production or for working capital needs in green business operations. EKN reimburses for any loss up to 80 per cent of the credit outstanding.

“We applied for the Green Credit Guarantee because we want to work with those who truly understand sustainability – and offer our customers solutions that are not just good for business, but also for people and the planet.”

The primary function of a switch is to divert a train from one track to another, allowing it to move from its current route to a different one without any need for stopping. The interaction between trains, tracks and switches presents a delicate engineering challenge: ensuring the curvature of the tracks is precise enough to provide a safe and smooth ride for passengers.

Major headache

Switching equipment is an area where today’s technology is radically different from the 1880s, when Vossloh was founded. “Switches have become a lot more durable and cost-efficient, plus they are able to handle much greater train speeds and more traffic, with less maintenance.”

However, high-speed trains demand new and larger switches. When the world speed record on rail was set, a Vossloh switch was crossed at 560 km/h. 

Replacing outdated rail infrastructure is a major headache for railway operators. Vossloh’s new facility in Sweden will support more efficient replacement of existing switches through pre-fabrication. 

“With the help of EKN and Team Sweden, we have become part of a complete and competitive railway export offering – within a robust production ecosystem that can supply domestically as well as internationally,” Gryspeert concludes.