DfT confirms $2.4 billion train order with Siemens

LONDON Thu Jun 27, 2013 5:18pm BST

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LONDON (Reuters) - The Department for Transport (DfT) on Thursday confirmed it had awarded Germany's Siemens a $2.4 billion (1.5 billion pounds) contract to build 1,140 new carriages for use on the Thameslink rail line.

The trains, due to be introduced from 2016, will be used on the Thameslink commuter route that runs through London and connects Bedford with Brighton on the south coast of England.

It is confirmation of a decision made in 2011 to name the German industrial conglomerate as the preferred bidder.

The award was a blow to Bombardier, the train maker based in Derby, central England, which was shortlisted for the contract.

The decision to award the deal to Siemens has been widely criticised by UK unions who say Bombardier should have been given the contract to protect jobs in Derby and numerous local suppliers.

Siemens said the trains would be built in Germany but that many of the components for the new trains would be manufactured in Britain.

(Reporting by Rhys Jones, Editing by Brenda Goh)

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Comments (2)
DennisClapham1 wrote:
I seem to remember that Bombardier lost out to Siemens a year or two back on account of Siemens having a greater access to higher values loans. Surely it would make more sense to keep the contract in the UK, for the sake of job creation or just job stability. It is not just the ‘tax’ revenue, the the wages being paid in UK economy will be spent in the UK economy, which in turn promotes growth.

Jun 27, 2013 9:27pm BST  --  Report as abuse
DennisClapham1 wrote:
I remember Bombardier losing out to Siemens a year or 2 back on account of Siemens having greater access to higher value ‘LOANS’. Apparently there wasn’t much in it between either company being able to deliver on the goods it was about their ability to mount up a greater debt. What is it with businesses and debt!!!!. It would have been better in both instances if Bombardier secured the contract. Not only the Tax revenue through the wages being paid in the UK, but income earned in the UK, gets spent in the UK which is needed to get any growth. But I guess these decision are all about how the BANKS will benefit.

Jun 27, 2013 9:39pm BST  --  Report as abuse
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