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Dutch budget train GoVolta postponed after not getting funds

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Dutch start-up train operator GoVolta will not be able to start train services this year after Rabobank decided against granting the new rail company a loan. The train paths (‘slots’ on the rails) allocated for GoVolta’s budget trains to Berlin in Germany, Copenhagen in Denmark and Basel in Switzerland have now been returned. 

Despite the setback, GoVolta is pressing ahead with its plans. “I know this is a very good idea”, GoVolta co-owner Hessel Winkelman told Treinreiziger.nl.

At the end of 2023, young entrepreneurs Winkelman and Maarten Bastian unveiled plans to operate international trains to Berlin, Copenhagen, Basel and Paris in France under the GoVolta brand. 

It’s all about the money.

GreenCityTrip

The pair had previously made a name for themselves by running night trains to Prague in Czechia, Milan and Venice in Italy, Copenhagen, Gothenburg in Sweden, Vienna in Austria and Budapest in Hungary under the GreenCityTrip brand. Prior to that, they achieved success in the travel sector by selling air tickets through Flywise.

GoVolta seeks its own train operating licence

The plan for GoVolta’s daytime trains, with tickets intended to cost just 10 euros, has faced repeated obstacles. 

Initially, progress was stalled due to a dispute with the subcontractor responsible for operating the trains. Since then, GoVolta has been working to secure its own train operating licence. The company had already obtained track access for this year, and prospects seemed promising when Rabobank itself approached GoVolta to discuss financing for the necessary carriages. Nearly seven million euros was required to purchase and refurbish the rolling stock.

GoVolta commissioned valuation reports for the carriages and established new companies to realise its ambitions. However, following an eight-month process, Winkelman and Bastian were recently informed by the bank that the loan would not be granted, citing excessive risk.

Rant on LinkedIn

Expressing his frustration in a LinkedIn post on Friday, Winkelman wrote: “After an 8-month trajectory with Rabobank, it turns out that they are not so keen on the sustainable ambitions of experienced entrepreneurs.”

“ASN Bank and ING Nederland also talk a lot about trains, but they do not finance them. Why? There is no benchmark. It has not been done before. Is that the reason to let the opportunity to finally bring affordable train transport to the Netherlands pass you by? Commuters will have to pay the bill at Nederlandse Spoorwegen for the time being. Or they will fly”, Winkelman quips.

“General Dutch Association of Travel Agencies (ANVR) travel organisations prefer to focus on the old revenue model. Flying: that is where it is earned now, so that is what we will stick to. If sustainability really had any priority, the sector would have been more forthcoming in raising the necessary final €2.5 million.”

“Our message: it is possible, but when you ask organisations to put their money where their mouth is, no one will respond. Then stop sending the sustainable message. There is a great demand for affordable international train transport, now we need parties that are also prepared to stick their necks out to give the early start a chance. Benefit as soon as it runs? Participate in the next growth phase? Nice, but that is of no use to us now.”

“After three years of operating night trains ourselves, we are switching to operating affordable international train transport with day trains from GoVolta. A little more patience everyone! Have a nice flight this summer.”

GoVolta remains committed to its plans

Winkelman is adamant that the project will not be abandoned, telling Treinreiziger.nl: “It will take longer, but that does not mean we are giving up. I know this is a very good idea. Demand for train travel is high. Trains are full, and fares are expensive. We want to offer travel for less than half the usual rates.”

According to Winkelman, companies such as Kruidvat, Albert Heijn and Hema have expressed interest in selling GoVolta tickets, and seventy per cent of the tickets have already been sold in advance. The company continues to seek investors or lenders willing to finance ‘a small part’ of the shares but is not interested in adopting a crowdfunding model like European Sleeper.

Funding for locomotives

Discussions regarding the planned carriages are still ongoing, Winkelman stated. 

However, he confirmed that €24 million in financing has already been secured for the purchase of five Siemens Vectron locomotives. “We now have an option on them for next year.” 

GoVolta also aims to provide locomotive services for other rail operators. According to Winkelman, several parties have already expressed interest in using GoVolta’s locomotives. Financing locomotives is easier, he explained, because if an initiative fails, there are always other buyers willing to take over a locomotive.

GoVolta is the first new carrier to have been allocated capacity for an international daytime train on the Dutch railways. Other operators, including Qbuzz, Arriva, Flixtrain and Heuro, also plan to run international trains to and from the Netherlands, but their initiatives have also been delayed or postponed. 

At present, NS International is the only operator running ‘open access’ international trains, in cooperation with Eurostar, Germany’s Deutsche Bahn and Belgium’s NMBS / SNCB.

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