European Train Network Expansion Announced - Acquisition of 65 Trains by FlixTrain - European train services to launch, announced by Flixtrain - 65 trains procured for operation
Flix Train Shares Ambitious Europe-wide Expansion Plans
In a significant move towards broader European connectivity, FlixTrain has announced an order for 65 high-speed Talgo 230 trainsets, with an already committed investment of over €1 billion. The invitation-to-tender contract with the Spanish manufacturer Talgo has the potential value of up to €2.4 billion, aiming to revolutionize rail travel across the continent.
André Schwämmlein, Flix's CEO, views the trains as a quintessentially European product, intending to extend their availability beyond the home market of Germany. The trains boast features such as barrier-free access, cutting-edge WiFi, and other comfort-enhancing elements. The locomotives will be provided by Siemens.
The trains have been designed with cross-border operability in multiple European countries, with initial deployment focus on Germany, Austria, Denmark, the Netherlands, and Sweden. FlixTrain plans to navigate key international corridors such as Germany-Denmark, Germany-Netherlands, Germany-Sweden, and Germany-Austria. Additionally, they have promised a new service between Berlin and Warsaw.
While Poland is not yet commercially compatible with Talgo 230, the Berlin-Warsaw route represents a future international connection for FlixTrain, signaling the company's ambitious expansion goals. The Talgo 230's cross-border capabilities could enable further growth as rail interoperability standards and demand evolve.
FlixTrain, which has secured backing from financial investor EQT and the holding company of logistics billionaire Klaus-Michael Kühn, will finance the endeavor through a combination of equity and loans. The company aims to transition from being a mere service provider to a technology platform with the goal of expanding its network within Germany and neighboring countries.
The Federal Transport Minister, Patrick Schnieder (CDU), welcomed this investment as a strong signal for the rail market. The new trainsets aim to enhance travel comfort and convenience, promoting a sustainable mode of transport within Europe.
The ambitious Europe-wide expansion plans of FlixTrain include incorporating vocational training for their employees in the operation and maintenance of the Talgo 230 trainsets, fostering expertise in the automotive industry. With the financing sourced from equity and loans, involving investors like EQT and Klaus-Michael Kühn's holding company, FlixTrain intends to broaden their network, leveraging the finance sector to fund vocational training programs, potentially revolutionizing rail transportation across the continent.
