An organisation which represents the views of local authorities across the East Midlands has hit out at the decision by train operator Abellio 海角视频 to overlook Derby’s Bombardier for a £400 million contract.
Abellio, which is due to take over the East Midlands rail franchise on August 18, has named Japanese firm Hitachi as the preferred bidder for the deal to supply brand new bi-mode trains to replace the current aging intercity fleet.
Bombardier, which needs to find more work to fill its order book from 2021 onwards in order to sustain its Litchurch Lane plant, had submitted a bid for the work.
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But the decision by Abellio, which is the parent of East Midlands Railway - the company that will operate the East Midlands franchise - means that the new fleet of trains will be built at Hitachi’s plant at Newton Aycliffe, in the north-east.
While the decision has been welcomed in that part of the world, East Midlands Councils (EMC), the consultative forum for local authorities across the region, has expressed its dismay.
In a statement it said: “EMC is hugely disappointed by the news that a fleet of new inter-city bi-mode trains, to be introduced onto the Midland Main Line under the new East Midlands Railway Franchise, will not be built by Bombardier in Derby.
“The decision is a massive missed opportunity to support highly skilled local jobs and a body blow for the East Midlands rail supply chain at a time of considerable economic and political uncertainty.
“Bombardier took the time to explain its bi-mode proposition to both the Transport for the East Midlands Board and to the East Midlands All Party Parliamentary Group.
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“Council Leaders and MPs were impressed with the design capability to run at 125 mph under both electric and diesel traction, and with the flexibility to replace diesel engines with electric or battery units at a future date.
“EMC and TfEM will continue to work with East Midlands Railway and the Department for Transport to ensure that the new rail franchise delivers improved services for local communities and businesses.”
In its statement explaining the reasoning behind its choice of Hitachi, Abellio insisted that suppliers in the East Midlands, which is home to one of the largest clusters of rail firms in the world, would feel the benefit.
In the statement, it said: “This new order for Hitachi will benefit suppliers across the country and, in particular, the East Midlands.
“Hitachi’s 海角视频 train factory at Newton Aycliffe, in County Durham, has worked with 65 different suppliers from the East Midlands, awarding various multi-million-pound contracts to support skills and high-quality jobs in the region.
“Hitachi’s proven capability to deliver modern intercity trains is a key factor in being awarded the contract and Hitachi’s skilled train maintenance team will maintain and service the new fleet at EMR’s Etches Park depot in Derby supporting high quality engineering jobs in the East Midlands region.”
Following the announcement, Bombardier said it was “disappointed” to have missed out on the deal and was seeking “formal feedback” from Abellio to explain why it had not been chosen.
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It is understood that there will be no immediate job losses at Litchurch Lane, which employs 1,600 staff, but the decision does heighten the need for Bombardier to secure more work for the Derby site.
One of the deals it is hoping to secure is the £2.75 billion deal to build the trains for HS2. The firm is part of a joint venture bidding for that work. Ironically, the other partner in that joint bid is Hitachi.
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Reacting to the news that the East Midlands trains would not be built locally, John Forkin, managing director of Marketing Derby, an organisation which supports job creation in the city, said: “This is not the news we were hoping for as it always felt right to have the locally built trains operated by the local franchise.
“However, Bombardier have won a number of major orders, from Anglia to Cairo, and have a busy production pipeline.
“We will certainly be backing their Great British Bid - with Hitachi - to build the HS2 trains.”