THE Luxembourg Rail Protocol to the Cape Town Convention on International Interests in Mobile Equipment formally came into force on March 8. The global treaty, commonly known as the Luxembourg Rail Protocol, is designed to improve the speed and ease of procuring privately financed rolling stock.
Four countries will initially be subject to the protocol, having signed and ratified it: Gabon, Luxembourg, Spain and Sweden, as well as the European Union (in respect of its competences).
The non-profit Rail Working Group, which has pushed for adoption of the protocol, says Paraguay and South Africa are about to ratify, while Britain, France, Germany, Italy, Mozambique and Switzerland have signed. Other states, including China, Eswatini, Ethiopia, Finland, Malta, Mauritius, Namibia, Senegal and Ukraine are actively considering adoption.
The protocol is endorsed by many international rail organisations, including Intergovernmental Organisation for International Carriage by Rail (OTIF), International Rail Transport Committee (CIT), International Union of Railways (UIC), International Union of Wagon Keepers (UIP), European Rail Freight Association (ERFA), Alliance of Passenger Rail New Entrants (ALLRAIL), International Association of Public Transport (UITP), Community of European Railway and Infrastructure Companies (CER) and European Company for the Financing of Railroad Rolling Stock (Eurofima). It is also actively supported by the African Union, the UN Economic Commission for Africa and the UN Economic Commission for Europe.
The protocol has taken a considerable amount of time to come into force since it was formulated in February 2007 following the Cape Town Convention in 2001. A ceremony held during a special intergovernmental meeting at the Universal Postal Union in Bern, Switzerland, on March 8, marked the occasion.
“The entry into force of the Luxembourg Rail Protocol is an extraordinary achievement that supports urgently needed access to private credit for the rail industry”, says Mr Ignacio Tirado, secretary general of the International Institute for the Unification of Private Law (Unidroit).
“At a time when an increasing number of states seek to implement transport policies that contribute towards the UN’s Sustainable Development Goals, the protocol is a key instrument.”
The Luxembourg Protocol sets up a new system for recognition, priorities and enforcement of creditor and lessor rights relating to rolling stock, which are registered in an easily accessible online registry, based in Luxembourg, and introduces, for the first time, a global unique permanent identification system for rolling stock.
“This is a momentous day for the rail industry," says Mr Howard Rosen, RWG’s group chairman. “It opens up new possibilities for the private sector to provide much-needed and cheaper financing for railway rolling stock around the world.”
