From Guardian online:
Bombardier could be thrown a lifeline by the Department for Transport (DfT) with a £120m train order that would preserve hundreds of jobs at the manufacturer's Derby plant.
The DfT is giving serious consideration to a proposal that would give the Canadian group breathing space in plans to axe more than 1,400 jobs. If Bombardier receives the green light, it is understood that posts for hundreds of design engineers, currently under threat, would be saved. It is understood that hundreds more jobs would be safeguarded in the production process, although industry sources were unable to specify exact numbers for the whole contract.
The transport secretary, Philip Hammond, has come under pressure to assist Bombardier after his department selected Siemens of Germany as preferred bidder for a £1.4bn contract to build 1,200 new trains for the London Thameslink route, with Bombardier in second place. Bombardier is cutting nearly half its 3,000-strong workforce in response, prompting a political storm that saw Hammond, Siemens and Bombardier called before MPs at the Transport select committee last week.
Under the proposal, Britain's last remaining train factory would build new electric-powered carriages for Voyager diesel fleets used by the CrossCountry franchise that operates from Penzance to Aberdeen. Sources familiar with the plan said it could be worth around £120m, with about 57 carriages required.
Colin Walton, chairman of Bombardier Transportation UK, said: "We very much welcome that the DfT is looking at a proposal to add electric power cars to the Voyager fleets and Bombardier will be pleased to participate in the development of a business case for this project." Under the refit plan, the 57 Voyager trains used by CrossCountry would receive an additional carriage fitted with a pantograph, which is attached to the roof of a train and draws down electricity from overhead lines. This would allow the diesel-powered trains to operate with electric power on electrified parts of the rail network, cutting financial costs, limiting carbon dioxide emissions and boosting capacity.
A DfT spokesperson said: "The DfT is looking into the possibility of upgrading the existing fleet of diesel CrossCountry Voyager trains by adding an additional carriage with a pantograph. This would enable the upgraded train to run using electric power provided by the overhead lines. We have asked the industry to lead a short initial study into whether this is technically feasible and whether there would be a good business case, which provided value for money."
The proposal could bring further revenue, and positive job news, if Bombardier wins more work to refit the Voyager and Meridian trains operated by the Virgin Trains and East Midlands Trains franchises. However, discussions over this would have to be conducted separately. It is understood that Hammond is keen to preserve Bombardier's high-value manufacturing jobs, led by the design engineers who will be key to bidding for future train contracts if the Derby factory survives.
Bombardier is conducting a review of its UK business in the wake of the Thameslink decision, which the government is adamant will not be reversed. The Canadian group is desperate for new work in Derby, with its last major contract, for London Underground, running out in 2014. The new Voyager trains could be designed and built between 2012 and 2013, allowing Bombardier to mitigate immediate lay-off plans.
Bombardier could be thrown a lifeline by the Department for Transport (DfT) with a £120m train order that would preserve hundreds of jobs at the manufacturer's Derby plant.
The DfT is giving serious consideration to a proposal that would give the Canadian group breathing space in plans to axe more than 1,400 jobs. If Bombardier receives the green light, it is understood that posts for hundreds of design engineers, currently under threat, would be saved. It is understood that hundreds more jobs would be safeguarded in the production process, although industry sources were unable to specify exact numbers for the whole contract.
The transport secretary, Philip Hammond, has come under pressure to assist Bombardier after his department selected Siemens of Germany as preferred bidder for a £1.4bn contract to build 1,200 new trains for the London Thameslink route, with Bombardier in second place. Bombardier is cutting nearly half its 3,000-strong workforce in response, prompting a political storm that saw Hammond, Siemens and Bombardier called before MPs at the Transport select committee last week.
Under the proposal, Britain's last remaining train factory would build new electric-powered carriages for Voyager diesel fleets used by the CrossCountry franchise that operates from Penzance to Aberdeen. Sources familiar with the plan said it could be worth around £120m, with about 57 carriages required.
Colin Walton, chairman of Bombardier Transportation UK, said: "We very much welcome that the DfT is looking at a proposal to add electric power cars to the Voyager fleets and Bombardier will be pleased to participate in the development of a business case for this project." Under the refit plan, the 57 Voyager trains used by CrossCountry would receive an additional carriage fitted with a pantograph, which is attached to the roof of a train and draws down electricity from overhead lines. This would allow the diesel-powered trains to operate with electric power on electrified parts of the rail network, cutting financial costs, limiting carbon dioxide emissions and boosting capacity.
A DfT spokesperson said: "The DfT is looking into the possibility of upgrading the existing fleet of diesel CrossCountry Voyager trains by adding an additional carriage with a pantograph. This would enable the upgraded train to run using electric power provided by the overhead lines. We have asked the industry to lead a short initial study into whether this is technically feasible and whether there would be a good business case, which provided value for money."
The proposal could bring further revenue, and positive job news, if Bombardier wins more work to refit the Voyager and Meridian trains operated by the Virgin Trains and East Midlands Trains franchises. However, discussions over this would have to be conducted separately. It is understood that Hammond is keen to preserve Bombardier's high-value manufacturing jobs, led by the design engineers who will be key to bidding for future train contracts if the Derby factory survives.
Bombardier is conducting a review of its UK business in the wake of the Thameslink decision, which the government is adamant will not be reversed. The Canadian group is desperate for new work in Derby, with its last major contract, for London Underground, running out in 2014. The new Voyager trains could be designed and built between 2012 and 2013, allowing Bombardier to mitigate immediate lay-off plans.