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ROLLING STOCK SPECIAL


T


he Department for Transport has given the go-ahead to the £4.5bn


Intercity Express Programme, proceeding with the Agility Trains bid but at a smaller scale than first anticipated.


The order has been scaled back from a maximum 1,400 carriages to around 500, but there had been speculation it would fall through completely.


The Agility consortium of Hitachi and John Laing was named preferred bidder two years ago, but a report by former civil servant Sir Andrew Foster criticised the plan.


The IEP is aimed at replacing the Intercity 125s, the diesel fleet bought by British Rail in the 1970s and 1980s. Some of the new trains will be electric, and some will be bi- mode diesel/electric trains.


Transport Secretary Philip Hammond said the DfT had rejected as ‘second rate’ the option of an all-electric fleet with diesel locomotives attached to haul them on non- electrified lines. There were further fears an all-electric fleet would not create any British jobs, although legally this could not be a factor in the DfT’s decision.


At least 500 jobs are expected to be cre- ated in County Durham when the consor- tium builds its new train factory at Newton Aycliffe. Thousands of supply jobs should also be created.


North East Chamber of Commerce chief executive James Ramsbotham said: “This important announcement brings train building back to the home of the railways, which is testament to the skills that we still have in this sector and the high-quality workforce that will be assembled to deliver this work.”


In a statement, Hitachi said: “Hitachi is pleased to announce that Newton Aycliffe is the preferred site for its planned European rolling stock manufacturing and assembly centre.


“This investment will generate at least 500 new jobs, and major opportunities for the UK and European supply chain.”


But UNIFE (the Association of the European Rail Industry) Director-General


36 | rail technology magazine Feb/Mar 11 Philip Hammond


Michael Clausecker said: “The deci- sion to accept the Hitachi bid weakens the European posi-


tion vis-à-vis Japan and shows the lack of interest of some governments to sup- port Europe’s industrial base in the fight for open markets and against unfair trade practices.”


In a statement, UNIFE explained: “While the promised creation of 500 new jobs is no doubt welcomed in the UK economy at this time, this figure is extremely low com- pared to what could have been secured if the IEP was executed by a European sup- plier. The decision further reinforces the lack of reciprocity between Europe and Japan in rail procurement.


“Thanks to clear and transparent public procurement rules transport-related ten- ders in Europe are largely open to foreign companies, while the Japanese market re- mains completely inaccessible to European rolling stock suppliers. Indeed, only 2% of the Japanese rail equipment market is opened to foreign suppliers.


“This de facto market closure is achieved through the extensive use of the so-called ‘Operational Safety Clause’ by which for- eign bidders are effectively excluded.


“This situation provides Japanese com- panies with an unfair advantage when responding to tenders in Europe, and is unacceptable. With no competition to face in their home market, such companies are then able to submit highly competitive of- fers in EU countries, and are supported by the Japanese government to do so.”


Senior UK ministers have revealed the huge extents to which Japanese politi-


cians went to help agree the Hitachi deal, including constant lobbying in person and over the phone. The DfT expects the deal to be completely agreed and finance put in place by the end of the year, with the first new trains in service by 2016.


Hitachi rejected UNIFE criticism, say- ing: “Hitachi Rail Europe is a European company led by Europeans, and Europe will gain, economically and competitively, from having a new quality player in the market.”


It said the decision came after “rigorous competition”, maintaining that the 500 jobs directly created in the UK would be supplemented by thousands throughout the supply chain.


It added: “Since Hitachi came to the UK Rail market in 2005, it has worked contin- uously with European suppliers to develop the Class 395 trains, which were delivered on time and have performed exceptionally well in service.


“European suppliers provided 50% of pur- chased components (by value) of the Class 395. The Hitachi Super Express Trains provided as part of the IEP will be built in the UK and will be another great opportu- nity for European suppliers to work with Hitachi and build on the success of the Class 395 project.


“Hitachi believes in free market access be- tween Europe and Japan in the rail indus- try and other sectors.


“We respect our European competitors, but we also think we have something unique to contribute to Europe.”


FOR MORE INFORMATION Visit www.dft.gov.uk/pgr/rail/pi/iep/


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