DRS cancels plan to sell and lease back locomotives

Direct Rail Services has confirmed to RAIL that it has decided to withdraw all bar one of the locomotives it had offered for sale in July.

Two months ago, the operator issued a tender for the disposal of 37069/602 and 57002 by outright sale, while 37218/401/402/407/419/422-425/716 were offered on a sale and lease back arrangement. The latter was primarily to enable DRS to fulfil its obligations to Network Rail for railhead treatment work during the leaf fall season.

Replying to RAIL’s enquiry regarding the withdrawal of all except one of the locomotives previously offered, a DRS spokesman said on September 2: “After reviewing our current tender process and business needs, we took the decision to suspend the recent sale and lease back scheme of our Class 37 locomotives.

“We have also taken the decision to sell only one of the three locomotives which were offered for outright sale - 37602.” 

To read the full story, see RAIL 966

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