Bombardier gets £188m Southern Railways job

 

Britain's last major train-builder, Bombardier, has been thrown a mini-lifeline, winning a £188m deal to build 130 carriages for Southern Railways.

The Government, which was criticised for awarding a £1.4bn Thameslink deal to Germany's Siemens instead of Bombardier this year, will provide Southern with more than £80m towards the contract announced yesterday. Siemens is said to have been among the unsuccessful bidders.

Some industry sources said that given the political heat around Bombardier and the fact that it already runs Southern's existing Electrostar trains, it was inevitable that the likes of Siemens would not have won the contract.

Meanwhile, one analyst said the speed of yesterday's tender process had raised eyebrows in the industry, suggesting political considerations may have played a part.

Bombardier welcomed the win, although it was also unable to say whether the contract would save any of the 1,400 jobs it announced would go after losing out to the Germans. Doubts remain over the viability of its Derby factory.

Bombardier, which is Canadian-owned, insisted that the contract was won after a free and open tender process run by Southern Railways, and industry sources cited annoyance that the Transport Secretary, Justine Greening, appeared to suggest the Government had played a hand. In a triumphant statement describing it as "brilliant news for Bombardier and Derby", Ms Greening said: "This deal, helped along by my department, shows my determination to invest in Britain's railways: our support for Southern will boost capacity while helping British jobs. I can't think of a better outcome."

Ms Greening's department later said it had "absolutely not" interfered with Southern's tender process and would have awarded the £80m whoever won.

Far more important to the Derby factory's future are two bigger projects up for grabs. The first is the contract to build new cars for the CrossCountry routes enabling trains to run on both diesel and electric, in preparation for the partial electrification of the network. Known as Evoyager, the award is hoped for in the first quarter of 2012. Depending on the length of the associated maintenance contract, it could be worth between £200m and £1bn for Derby.

The second is CrossRail, where Bombardier hopes the Government will heed calls from the Transport Select Committee to separate financing of contracts from the actual train-building. It has been claimed that part of the reason Siemens won the Thameslink job was because the German company's better credit rating made it cheaper to finance.

Analysts said yesterday's deal signalled that Bombardier's heavy lobbying of the Government and threats to close Derby were working.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Voices
Barn owls are among species that could be affected
charity appeal
News
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
Sport
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas