The Next Generation Rail Fund, managed by Aberdeen Investments and Rock Rail, is financing a fleet of 29 battery-electric trains and associated charging infrastructure for UK government-owned operator TransPennine Express.
The unspecified funding will support the delivery of five-car trains as part of the Transpennine Route Upgrade rail modernisation programme, covering Liverpool, Manchester, Manchester Airport, Leeds, Hull, York, Scarborough and Saltburn.
The fund’s equity investment is supported by senior debt provided by institutional investors and banks, including Barclays, Intesa Sanpaolo, Lloyds, MetLife, NatWest, NORD/LB and Scottish Widows.
The fleet is expected to enter passenger service in the early 2030s.
Dominic Helmsley, head of economic infrastructure at Aberdeen Investments, said: “This is a landmark investment for our Next Generation Rail Fund and a strong demonstration of what long-term institutional capital can achieve when it is aligned with the country’s infrastructure priorities.
“These new trains will form an important part of the modernisation of the TransPennine network, helping to improve capacity and reliability while supporting the transition away from diesel. The combination of electric and battery power also provides the flexibility needed to deliver those benefits as the wider route upgrade progresses.
“For investors, the transaction provides access to essential UK infrastructure backed by long-term contractual revenues. Just as importantly, it enables their capital to support tangible improvements to the railway, passenger experience and regional connectivity.”
Mark Swindell, founder and CEO of Rock Rail, said: “As a person who grew up in the northeast of England, I am delighted that Rock Rail has today driven over £1bn (€1.2bn)of investment into trains for the north of England linking Liverpool through Manchester and York to the northeast coastal towns.
“This is after my founding of Rock Rail over 12 years ago and developing five projects with over £3bn invested to fund rolling stock for services in and out of London.”
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