Crossrail delays competition bid

29 August 2011 Last updated at 18:59 ET

The route will stop in Canary Wharf

The competition to supply new trains for Crossrail, the major London train link, is being delayed until 2012.

The transport secretary announced a review of guidelines after the contract to supply trains for a different project went to a German company.

In June, Thameslink went to Siemens instead of Derby-based Bombardier.

This delay means the decision will now happen under new guidelines meant to ensure UK companies do not lose out to European rivals, the BBC understands.

The £16bn Crossrail scheme, which will connect Heathrow and Maidenhead in the west with Abbey Wood and Shenfield in the east, intended to issue tender documents for the 60 new trains in late 2011.

It will now do so in early 2012, according to BBC political correspondent Adam Fleming.

Four companies have been shortlisted for the contract – Bombardier, Construcciones y Auxiliar de Ferrocarriles SA (CAF), Hitachi Rail Europe Limited and Siemens.

Earlier this year the contract to supply rolling stock for Thameslink went to Siemens rather than the Canadian company Bombardier.

The estimated £1.4bn deal had been regarded as crucial for the Derby – the UK’s last remaining train factory. The company now plans to cut half of the 3,000-strong workforce at its factory in Derby.

Transport Secretary Philip Hammond later ruled out a review of the decision, but said he would look at procurement guidelines.

Move ‘will save money’

The Department for Transport said its review was examining whether the UK was making best use of the application of EU procurement rules.

Our correspondent says: “At the time [of the Thameslink decision] the transport secretary said the rules were set up by the Labour government and his hands were tied in that case.

“But what he was going to do was look at whether the guidelines for how these competitions work could be changed so UK companies were competing on an equal footing with continental competitors.”

Labour said the decision raised questions over the government’s decision on Thameslink.

“If ministers are now saying it’s possible to review the Crossrail contract, they must explain why they have cost British jobs by refusing to do the same for the new Thameslink trains as Labour has repeatedly demanded,” said Maria Eagle, shadow transport secretary.

Crossrail said it was not a delay to the project but was the result of shortening the time between ordering the trains and bringing them into service. It claimed it would also save money.

“Crossrail has identified that significant operational cost savings, running into tens of millions, can be realised for taxpayers by introducing Crossrail rolling stock to the rail network over a shorter period of time,” said Andy Mitchell, Crossrail programme director.

“Continuing with the original procurement programme would have delivered the new train fleet earlier than was necessary.”

Bombardier welcomed the delay.

“The rescheduling will give time to ensure that the invitation to tender will allow the results of the government’s review of procurement to be included,” it said in a statement.

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