Rail First Asset Management Streamlines Rail Operations and Maintenance

Rail First Asset Management is a game-changer for rail companies, allowing them to optimize their assets and reduce costs. By analyzing data from sensors and other sources, Rail First Asset Management can identify potential issues before they become major problems.

This proactive approach can help rail companies avoid costly delays and maintenance downtime, which can be a major headache for passengers and freight customers. By keeping their assets in top condition, rail companies can improve the overall efficiency of their operations.

Rail First Asset Management can also help rail companies to prioritize maintenance and repairs, ensuring that the most critical assets are addressed first. This can help to reduce the risk of accidents and improve safety overall.

Readers also liked: What Is Share Dilution

DIF and Amber Infrastructure have acquired Rail First Asset Management in a deal worth A$425m. This is a significant investment in the Australian rail industry.

The acquisition was done at 11 times earnings multiples, valuing Rail First at A$425m (€291m). This valuation is a testament to the company's strong fundamentals and growth potential.

Rail First operates over 1,300 locomotives and wagons, providing full-service vertically-integrated rolling stock leasing and maintenance solutions. This extensive network will likely be a key factor in the company's future growth.

Under Anchorage ownership, Rail First has doubled contracted earnings within three years and materially increased contract tenure. This impressive performance suggests that Rail First is well-positioned for further growth.

The new owners, DIF and Amber Infrastructure, are experienced investors in the rail industry. DIF has a presence in Australia since 2015 and has multiple investments, including stakes in the A$11bn North East Link toll road PPP project in Melbourne.

Here are the key players involved in the acquisition:

Amber Infrastructure's expertise in rail freight assets will likely be beneficial in the next phase of Rail First's growth.

Rail First has a diverse locomotive fleet, comprising various classes of units, including the EL class, GL Class, G class, VL class, CF class, and CM class. These locomotives are diesel-electric and operate on both standard and broad gauges.

The company's fleet is made up of 78 locomotives, with the majority being new build units. Most of the locomotives are named after famous Australian racehorses, adding a touch of personality to the fleet.

Rail First's locomotive fleet is equipped with modern technology, with the ability to reach speeds of up to 115 km/h. The company has opted to withdraw its older smaller locomotives, focusing on more efficient and powerful units.

Rail First also operates a large fleet of freight wagons, with over 1,200 wagons of various types, including grain hoppers, bulk mineral hoppers, and intermodal flat wagons. The wagons are identified by four-character codes starting with the letter C.

We're highly specialized in signalling upgrades and renewals, which is a time-critical task that can impact the rail network if delayed.

Our signalling expertise is top-notch, and we're currently managing a project to upgrade the signalling system on the Sydney Rail network.

Time is of the essence in this type of work, and any delays can cause ripple effects throughout the rail network.

We also sit on the Sydney Trains maintenance panel for signalling and for overhead wiring, ensuring that our expertise is used to inform and improve maintenance practices.

Suggestion: Railroad Track Maintenance Tax Credit

RailFirst's locomotive fleet has undergone significant changes over the years. Initially, it comprised second-hand locomotives that were no longer required by their original rail operators.

The company has since shifted towards purchasing new locomotives. In May 2012, RailFirst placed an order for ten MP33C new-build locomotives with Wabtec subsidiary MotivePower.

Today, the RailFirst diesel locomotive fleet consists of a variety of different classes of units. By February 2020, the company had opted to permanently withdraw all of its older smaller locomotives.

Here's a breakdown of the locomotives in RailFirst's fleet as of March 2020:

RailFirst wagons, on the other hand, consist of 1,200 freight wagons of a variety of types.