Rail at a global inflection point: Providing the infrastructure stewardship for the future of sustainable transportation

Duncan Jewell, Co-Head APAC and Managing Director, Asset Management

Rail as a transformative force

Rail has always been more than a mode of transport. It is one of the most powerful forces for shaping societies, unlocking regional connectivity, reducing carbon emissions and enabling urban regeneration. Well-planned rail systems can determine how cities grow, how people move, and how economies expand, particularly if they benefit from long-term asset management. In an era defined by the urgency of climate action, rail has become indispensable to national net-zero strategies and to the creation of more liveable, connected and sustainable urban environments.

It is no coincidence that governments around the world have consistently identified rail as a central pillar of their infrastructure ambitions. Unlike many other sectors, rail can simultaneously address multiple public objectives: reducing carbon emissions, improving national competitiveness, relieving congestion, regenerating urban centres and strengthening energy security. The policy rationale is therefore both economic and environmental, supported by a strong current of public demand for greener, faster and more efficient travel. Rail is also the single most effective way to reduce transport-related emissions at scale, particularly within densely populated corridors. By shifting journeys from road and short-haul aviation, it reduces reliance on fossil fuels while offering competitive city to city travel times.

The transformative impact of rail extends well beyond sustainability and mobility. Its sector leading safety record reduces both human and financial costs. Perhaps most significantly, rail stations often become catalysts for transit-oriented development, unlocking new opportunities for housing, retail and commercial activity. This dynamic is visible across Asia and continental Europe, where high speed rail (HSR) hubs have driven urban regeneration and economic clustering. For governments this creates long-term fiscal and social benefits. For investors it provides recurring value beyond ticket revenues, from real estate to commercial partnerships.

The scale and complexity of rail

Delivery of rail projects is, however, complex and costly. Unlike roads or airports, rail corridors stretch across entire geographies, cutting through diverse landscapes, municipalities and regulatory environments. These challenges explain why, despite its clear benefits, rail delivery has proven one of the hardest tests of modern infrastructure.

New lines require years of preparation before a single shovel enters the ground, from environmental assessments and permitting to land acquisition and detailed stakeholder consultation; the HS2 line in the UK is a prime example.

High-speed rail demands precise engineering. Routes must be relatively flat and fully grade-separated, often necessitating the construction of viaducts, tunnels, and bridges across existing road and utility networks. Utility relocation is frequently one of the most time-consuming, expensive and contested aspects of delivery, while land acquisition requires sensitive negotiation with communities to balance progress with fairness and transparency.

Such technical demands and the physical scale of rail projects mean that only a limited pool of global contractors and delivery partners possess the capability and financial strength to execute them. Success often hinges on forming well-structured international consortia that bring together civil engineering firms, rolling stock manufacturers, signalling experts, and digital system integrators. Aligning these partners under a unified delivery framework is essential for cohesion and timely execution.

The financial dimension is equally demanding. Rail projects are generational in scale, with capital expenditures running into the billions. They require financing models that can balance public sector ambition with private sector discipline, creating structures resilient enough to endure political cycles and economic shocks. Success depends on partnerships that embed accountability across decades rather than years.

Environmental approvals represent another major hurdle. In jurisdictions such as the United States, Canada, and the United Kingdom, the approval process can take three to five years before construction begins. These timelines, while essential for protecting habitats and ensuring responsible development, require governments and investors to adopt a patient, long-term perspective in a way that ensures outcome-based infrastructure.

Infrastructure stewardship

Partnership is at the core of successful rail delivery. Given the scale of these projects, governments and communities expect not just financial investment but enduring stewardship. At John Laing, we see ourselves as long-term custodians of rail systems and assets, which provide an essential service to local communities, ensuring that they perform not only at launch but across decades of operation.

Our role extends beyond capital. We bring deep financial, technical and commercial expertise that is critical to being a trusted partner on complex projects.

We embed them into teams alongside contractors, rollingstock providers, and operators, manage risk proactively, and use our global experience to anticipate challenges before they materialise. Its these trusted relationships built over years of experience working hand-in-hand with our global partner network, that has solidified our reputation. This has allowed us to work with the world’s most capable delivery partners, from global engineering firms to specialist system integrators and train manufacturers. It also enables us to structure consortia that combine the breadth of capability required for success, while also promoting the latest innovation in train design and delivery. 

The complexity of rail projects underscores why public-private partnerships remain so vital in rail. Few governments can shoulder these risks alone, yet few investors can navigate them without strong alignment with public authorities. The PPP model creates that alignment by embedding long-term accountability across the lifecycle of a project.

For John Laing, PPPs are not simply financial structures; they are frameworks of responsibility. As custodians, we ensure over the life of the concession, the underlying infrastructure meets the needs of the community it services, and is handed back to the client in accordance with the contract specifications to continue to fulfil their purpose.  In the process, we also ensure that sustainability targets, energy efficiency standards and performance guarantees are not only met but maintained across decades. For governments this creates certainty of delivery and long-term performance. For investors it generates predictable returns anchored in policy-supported sectors.

Trusted rail infrastructure stewardship

Rail is now at a global inflection point. Governments are laying the foundations for a new era of sustainable connectivity, but the projects are uniquely complex and capital-intensive. Success will depend on partnerships that combine public vision with private capability. 

At this global inflection point, rail demands partners with both vision and staying power. At John Laing, we bring both; ensuring the next generation of rail is delivered with discipline, innovation, and long-term infrastructure stewardship.

Related points of view:

Global momentum in rail 
Yangshi Yu, Director

Despite challenges, governments are pressing forward with unprecedented levels of investment. The Australian rail sector has seen over AUD 130 billion of construction and maintenance investment since 2014 and more expected to be spent to meet sustainable transport requirements for their growing population and the Brisbane 2032 Olympics. 

In the United States, the Biden administration invested $1.4 billion in 2023 for rail safety and capacity upgrades across 35 states, framing rail not just as a mobility solution but as a tool for strengthening supply chains and resilience in the face of climate risks. In the United Kingdom, a 2025 Spending Review committed £15.6 billion to the Transport for City Regions programme, aimed at integrating regional networks and supporting growth outside London.

Across Europe, the momentum is equally strong. France and Spain continue to expand their high-speed rail corridors with Czechia advancing their plans for multiple high-speed rail projects under a PPP procurement model expected to launch in 2026, while Germany has committed to new rolling stock programmes as part of its decarbonisation strategy to replace older diesel fleets. In Ireland, the Dublin Metro is emerging as one of the most significant infrastructure investments in the nation’s history with strong political support and momentum Portugal is pressing forward with its Lisbon–Porto–Vigo high-speed corridor, which will transform mobility across the Iberian Peninsula. Germany’s high-speed rolling stock programmes are essential to the success of its climate strategy. And in the United Kingdom, the government’s rail mapping exercise is paving the way for a new generation of projects across regional networks.  

Such programmes reflect a common theme: governments view rail not as an isolated investment, but as a central platform and catalyst for sustainable growth and competitiveness. 

The future of rail in Europe and beyond

Looking forward, the future of rail lies in both expansion and innovation as well as cleaner electric /electric battery trains replacing ageing and less efficient diesel units. High-speed rail is perhaps the most transformative opportunity, with global benchmarks from Japan, France and Spain showing how it can reshape national economies. Yet significant gaps remain across North America and parts of Europe, where the demand exists but delivery has lagged.

At the same time, rail is entering a new technological frontier. Electrified fleets and battery technology is becoming increasingly more efficient, whilst hydrogen propulsion is also emerging as a viable alternative for non-electrified lines, supported by early pilots in Europe and Asia. Given rail’s predictable routes and controlled refuelling environments, it is ideally placed to pioneer hydrogen adoption at scale. For John Laing, this creates natural synergies with our broader work in the energy transition, from Water treatment Plants for green hydrogen steel production to offshore transmission lines and wind farms. 

Expertise in people
David Wylie, Global Asset Management

At John Laing, we also believe that expertise in rail lies not only in the projects we deliver, but in the people who lead them. Our leadership team brings global experience with a regional focus, ensuring continuity, credibility, and deep-rooted partnerships across decades - not just during construction.

In Australia, Duncan Jewell, Co-APAC lead and Alister Walker, Asset Director, have guided some of the country’s most complex urban rail undertakings. In Europe, Luke Gorton, Head of Europe, has led major bids from Dublin to Lisbon, shaping the next generation of sustainable transport. 

Globally, our asset management teams and our expert SPV teams is where our expertise sits in relation to our significant rail projects. The success of these projects require a depth of advanced knowledge and experience in managing highly complex projects. Nate Morgan, CEO of Denver Transit Partners, Andrew Gray, Finance Director of Qtectic, and Felipe Suzuki who held Chief Technical Officer role for the Hazel McCallion LRT, as well as other technical lead roles for the Rio de Janeiro and Sao Paolo Metros. They are essential members of our team who oversee asset performance and stewardship across our rail portfolio, ensuring long-term value and operational excellence. 

This continuity of leadership is a hallmark of our approach. Unlike many infrastructure investors, our teams remain embedded throughout the lifecycle of a project, often staying engaged for 35 years or more, working shoulder-to-shoulder with public authorities, contractors, and operators. Our clients value this stability and long-term investment horizon, which enables us to address challenges collaboratively and maintain alignment across geographies and delivery models.