Posted 27th September 2012 | 3 Comments
Government announces aid for new trains
THE GOVERNMENT has signalled that it intends to make the acquisition of new rolling stock easier, by offering official guarantees.
The first project to benefit is set to be the new fleet for Crossrail. Treasury chief secretary Danny Alexander told the Liberal Democrat conference that the funding for 60 new trains would be guaranteed, so that there would no problems with timescales.
The Government will contribute £240 million, which is about 30 per cent. The remaining funding must still come from the private sector.
Mr Alexander said: "Difficulties raising the necessary private funding in the market could delay their delivery. The contract for Crossrail will be the very first project to be offered a new Government guarantee.
"It is the biggest infrastructure project in Europe right now. But we need to ensure the rolling stock is delivered on time."
The parallel but larger order for a new Thameslink fleet, which involves up to 300 trains, is still floundering as a result of the financial crisis in the Eurozone.
Outgoing rail minister Theresa Villiers said on 3 September that she hoped the contract with Siemens would be signed in 'early autumn', but when the new transport secretary Patrick McLoughlin was giving evidence to the Commons Transport Committee just nine days later, the deadline had apparently slipped to 'the turn of the year'.
Siemens was named as preferred bidder in mid-2011, with Bombardier in Derby as the second choice. At the end of September this year, Bombardier was still technically ''reserve bidder'.
Ms Villiers had claimed in late 2011 that the reason for the delay had been connected with planning permission glitches at Hornsey depot, which needs to be enlarged, but went on to admit that negotiations with Siemens and its funding banks were still incomplete.
The Crossrail contract is being pursued by four firms, one of whom is Bombardier. The other contenders are Siemens, CAF and Hitachi.
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Isambard Brunel, Beeston
Well this is interesting. If I've understood correctly the Govt is underwriting the finance, which should level the playing field between Bombardier and the larger Siemens which was able to borrow more cheaply to finance Thameslink owing to it higher credit rating. Lets hope Bombarider now have a fighting chance of winning the Crossrail job. Siemens & Hitachi have come out well on Thameslink, Eurostar & IEP jobs. It's about time Bombardier got a chance to shine.
Jamie , Sheffield (formerly of Farnborough)
Finally a story that isn't about the WCML; there is life after Branson after all :D
Notwithstanding any serious concerns about the two companies' proposals, the contract should be awarded to either Bombardier (which already has a plant up near me in Derby) or Hitachi (which has stated it plans to open a factory in Newton Aycliffe), so hopefully there will be greater security afforded to manufacturing/ engineering jobs in this country.
What would be even better is if the two companies could try and convince overseas rail operators / foreign governments to buy trains from them that are at least partially designed or produced in Britain.
Melvyn Windebank, Canvey Island, Essex
Pity the Thameslink order did not include a deadline for completion as then it could have be re-tendered if the deadline had not been met!
As for Crosrail order well we should remember the needless delay Crossrail had after the election which delayed the order for trains and now with the guarantee of government funding will this only apply if trains are FULLY built in Britain?