Skip to main content

Hitachi and Alstom won a 2.8bn contract in Britain

 The government’s High Speed 2 rail project has awarded a £2.8bn contract to build 54 trains to two manufacturing companies: Alstom of France and Hitachi of Japan. 

They will run on the new HS2 line from London to Manchester via Birmingham — with a spur to the East Midlands — and on other conventional lines. 

HS2 has faced a series of contract disputes, including a lawsuit brought by the US contractor Bechtel over the £1.3bn awards to build a station at Old Oak Common in west London, given to Balfour Beatty. 

The contracts include 12 years of maintenance, carried out at a new HS2 depot near Birmingham, which could be extended over the 35-year life of the rolling stock. 

Last month, the government announced significant cutbacks to both HS2 and the “HS3” project, connecting several northern cities. 

The vehicle body assembly and fit-out stages will be done at Hitachi’s plant in Newton Aycliffe in Durham. In contrast, the second stage of fit-out and testing will occur at the Alstom factory in Derby. As we believe we submitted a strong bid to build Britain’s new HS2 trains,” Siemens said. 

In 2017, engineering group CH2M — now Jacobs — handed back a £170m contract to design the second phase of HS2 after Mace, a losing rival in the tender, threatened legal action. 

The government said that the first trains for the new line will be produced from 2027 and will start carrying passengers between 2029 and 2033. 

Despite the high-profile failure of its Class 800 trains this year, Hitachi won the contract, which caused travel chaos on some of the UK’s busiest lines. The new trains would be 15 per cent lighter while accommodating 30 per cent more seats than comparable high-speed trains in Europe, such as the Italian ETR 1000, officials said. 

Those trains, which run on conventional rather than high-speed tracks, were pulled from service for days as a precaution after engineers found cracks on parts of their chassis. 

The new trains will be 400 metres long, carry more than 1,000 people and travel at over 225 miles per hour. 

The decision is also set to be the subject of a High Court challenge by Siemens.

Summarised www.sba.tax


Comments

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...

Tariffs on UK electric cars.

  The European Commission has confirmed that it will continue with its plan to impose tariffs on electric cars exported between the UK and EU starting next year. This is due to the "rules of origin" requirement that mandates EVs traded across the English Channel to have 60% of their battery and 45% of their parts sourced from the EU or UK or face a 10% tariff. A senior Commission official, Richard Szostak, recently informed parliamentarians from the UK and EU that the bloc's battery investment has significantly declined, making the tariffs necessary to encourage domestic production. In 2022, the EU's share of global investment in battery production shrank from 41% to only 2% after the US offered substantial subsidies through its Inflation Reduction Act. Starting in 2024, car manufacturers in the UK will need to have 22% of their sales come from zero-emission vehicles, which means they may need to import EVs from the continent to meet this requirement. If EU carmakers ...