IEP job creation - Compare and Contrast

This from Hitachi on 12th February 2009...

London, February 12, 2009 --- The British-led Agility Trains consortium, comprising Barclays Private Equity, Hitachi Ltd. (NYSE: HIT / TSE: 6501, "Hitachi") and John Laing, was today announced as the preferred bidder for the UK Department for Transport's Intercity Express Programme.

The programme represents a substantial investment in the UK Railway Industry, and Agility Trains is committed to spending 70% of the contract value in the UK. Agility Trains is delighted to confirm that Hitachi and John Laing expect this programme to deliver 2,500 skilled engineering jobs in the UK, in train manufacturing, construction and maintenance. Specifically, the consortium is in active discussions with 20 carefully selected high-quality UK suppliers, which will have a knock-on effect of safeguarding jobs in the UK. In addition this long-term programme will help secure up to 12,500 direct and indirect jobs in the local supply and services industry and local supporting communities.

Compare the above with this from Hitachi today...

LONDON, UK, March 1, 2011 — Agility Trains Ltd. today announced that it is delighted by the Department for Transport's decision to proceed with the Intercity Express Programme (IEP) with Agility Trains, subject to financial close. Under the IEP Agility Trains will deliver train services to Train Operating Companies at a fixed price for approximately 30 years using the IEP family of trains.

In addition, Hitachi is pleased to announce that Newton Aycliffe in Co. Durham is the preferred site for its planned European rolling stock manufacturing and assembly centre (subject to finalising commercial agreements). This investment will generate at least 500 new jobs, and major opportunities for the UK and European supply chain. The company looks forward to working with the Department for Business, Innovation and Skills, local authorities and a new workforce to create a world-class manufacturing facility.

Just fancy that!

UPDATE: This from The Archer...

Having just compared and contrasted the above I think I've got to the bottom of the difference in job numbers:

The February 2009 release talked of 2,500 skilled engineering jobs in the UK, in train manufacturing, construction and maintenance not to mention 12,500 knock-on jobs.

The March 2011 release talks of 500 new jobs, but no mention of where those jobs are or why they are not skilled engineering jobs.

Now, as any SoS know, 2,500 minus 500 = 2,000.

So are the 500 new jobs simply to build the Newton Aycliffe facility, which will then take delivery of the trains, after 2,000 skilled Japanese engineering workers complete them in Kasado?

Statement from Agility Trains

Agility Trains Confirm Intercity Express Programme Contract

- - Hitachi announces preferred site for manufacturing plant - -

LONDON, UK, March 1, 2011 – Agility Trains Ltd. today announced that it is delighted by the Department for Transport’s decision to proceed with the Intercity Express Programme (IEP) with Agility Trains, subject to financial close. Under the IEP Agility Trains will deliver train services to Train Operating Companies at a fixed price for approximately 30 years using the IEP family of trains.

Since the Preferred Bidder announcement on 12 February 2009, Agility Trains has worked very hard to improve value for money in response to the UK’s public financial position and has passed on 100% of all value for money benefits to the UK Government. In addition Agility Trains is delighted that the programme has passed a rigorous value for money assessment and the company looks forward to completing this innovative, competitive and complex procurement to provide new Intercity trains on a fully maintained and serviced basis to both the Great Western and East Coast Mainline routes.

The Intercity Express Programme includes delivery and maintenance of a family of new state of the art Super Express trains which will constitute a step change in capacity, improved reliability and reduced environmental impact on every train journey. All of this will lead to a significant improvement in passenger experience and cost savings to the UK government on the long term operation and maintenance of intercity train services across the UK. The Trains will be funded, owned and maintained by Agility Trains and will be provided to Train Operators (TOCs) on a pay-as-you-go basis contingent on fully serviceable, clean, reliable train services being delivered.

In addition, Hitachi is pleased to announce that Newton Aycliffe in Co. Durham is the preferred site for its planned European rolling stock manufacturing and assembly centre (subject to finalising commercial agreements). This investment will generate at least 500 new jobs, and major opportunities for the UK and European supply chain. The company looks forward to working with the Department for Business, Innovation and Skills, local authorities and a new workforce to create a world-class manufacturing facility.

Agility Trains is now looking forward to finalising the commercial details and engaging with its lending banks to reach financial close on the project by the end of the year.

Notes to Editors:

· Agility Trains is a consortium comprising Hitachi Limited and John Laing Projects and Development Limited, which was formed for the sole purpose of delivering the DfT's Intercity Express Programme ("IEP").

· Agility Trains was announced as Preferred Bidder in February 2009 and, after finding solutions to the financial liquidity crisis, were close to reaching commercial close in February 2010 when the then Secretary of State (Lord Andrew Adonis) appointed Sir Andrew Foster to perform an independent review to ensure IEP was the right option for the UK Government. Since that date, the negotiations have been on hold, but the Hitachi bid remained valid.

· Since Preferred Bidder, Agility Trains has maintained technical compliance and significantly improved value for money in the delivery of the IEP train provision services.

· The IEP family of trains meet technical requirements which are more advanced than any other high speed train in the UK as follows:

• they are required to be extremely reliable;
• the dual powered IEP train will operate on the whole UK network which ensures:
• maximum flexibility of deployment;
• ability to use diversionary routes; an
• andd ability to run under the wires in times of severe weather conditions or electricity outages improving the robustness of the UK high speed rail network;
• significantly lighter weight per metre and seat and greater energy efficiency,

all of which will reduce energy costs and costs of rail maintenance due to reduced impact of train movements on the degradation of the UK rail network;

..ends..