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Rotterdam underground network to receive €120 million funding for upgrade

Posted: 16 December 2016 | Katie Sadler, Intelligent Transport | No comments yet

The European Investment Bank (EIB) is to provide a €120 million loan for the acquisition of 22 new metro trains and a security upgrade of the Rotterdam underground network.

Rotterdam underground network to receive funding for upgrade

Credit: RET

The European Investment Bank (EIB) is to provide a €120 million loan for the acquisition of 22 new metro trains and a security upgrade of the Rotterdam underground network.

Rotterdam underground network to receive funding for upgrade

Credit: RET

The EIB has signed a €120 million loan agreement with the RET (Rotterdam Electric Tram) in order to purchase 22 new metro trains and a railway security upgrade.

16 new metro trains to operate on the new Rotterdam underground Hoekse Lijn

The investment will be used to acquire 16 new metro trains, which will operate on the Hoekse Lijn – the underground railway line between Rotterdam and Hook of Holland being put into operation from September 2017. The remaining six metros will be used to increase the frequency of service during rush hour on underground line E, which runs between Rotterdam and The Hague.

Furthermore, the funding will cover installation of a new security system to be installed on the new Hoekse Lijn. This has already taken place on the existing Rotterdam underground network.

New metros to increase frequency of service

Vice-president of the EIB, Mr Pim van Ballekom, says: “We have worked for a long time on this project with the RET and I am very glad that the EIB is able to support a company of such major social and economic importance. One of the objectives of the EU Bank is to use its investments to provide citizens with sustainable and reliable transport infrastructures on the best possible conditions. I think that this is certainly happening here and I therefore hope that public transport companies in other cities will follow suit.”

The new metros are estimated to cost €5 million each and will be put in to service from 2017. The investment together with the Hoekse Lijn expansion is expected to generate approximately 80 new jobs.

Mr Pedro Peters, CEO of RET said: “The RET met all the requirements in the field of social relevance, sustainability and technical innovation, allowing us to borrow 120 million euros at an interest rate of less than 1 percent. As a result of this, we save 3 million euros of interest per year. The less we pay in interest, the lower our costs, the fewer subsidies we need. This is the two-sided effect of the project”

The Rotterdam The Hague Metropolitan Area (MRDH) will stand surety for the loan.

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