ICWC fiasco results in new Thameslink challenge

This from the Derby Telegraph...

Four Tory MPs have asked the Department for Transport to look again at its decision not to award Derby train-maker Bombardier a lucrative contract following yesterday's furore over its handling of the bidding process for the West Coast Main Line rail franchise.

One of the MPs, Mid Derbyshire's Pauline Latham, attacked the department as "not fit for purpose" following yesterday's announcement by the Tory-Lib Dem Government that it was scrapping the decision to award the franchise to FirstGroup.

Good to see Conservative MP's acting in the interests of their constituents and local industry.

Now who is going to take the lead in challenging the Incredibly Expensive Procurement - currently at £4.9bn and counting!

Government parks tanks on ROSCOs front lawn

This from Virginia Water...

According to the Pink-un yesterday:

The £1bn order for new trains for the Crossrail east-west London rail line will be among the first recipients of a government guarantee designed to revive investment in essential infrastructure, Danny Alexander will announce on Tuesday.

Your exam questions for today are therefore;

1. This guarantee is being offered to reduce the lease payments and hence long term rail subsidy bill.  On that basis, why doesn't the Treasury and DfT offer this finance to all future rolling stock deals?

2. If Treasury/DfT is guaranteeing all rolling stock, why not just RAB finance the lot?

3. What are the implications for the as yet unsigned Thameslink order? and

4. What does this mean for the future of the ROSCOs?

Privitisation is dead. Long live state intervention!

UPDATE: This from Steve Strong...

Surely the deeply unpopular LibDems don't propose using this finance method to pay for the Thameslink fleet which will be built entirely in Germany?

Or the Crossrail fleet which will no doubt be manufactured in Japan and ahem... 'assembled' by three men and a dog at Newton Aycliffe.

Good to see taxpayers money being used to export skilled jobs overseas!

PM bangs the drum for Britain!

This from a Mr Levele Playing-Field...

Well, there's a surprise.

No one from the UK railway industry in iDave's sales tour to Japan and Asia.

Not even someone from Wimbledon Depot, offering consultancy on how to achieve high reliability from EMUs!

Derbygate: By Royal Appointment...

This from The Mirror...

Prince of Wales to visit Bombardier in morale-booster for workers

He will make a much-needed visit to engineers at the historic Bombardier plant next Friday just two weeks after the Canadian owners spared it from closure

Good on HRH!

Can it be long, Eye wonders, before Gideon and the Department for Transfer arrange a visit to Newton Aycliffe by Naruhito, the Crown Prince of Japan?

UPDATE: This from Otto von Primark...

To save any Thameslink embarrassment will Prinz Karl avoid travelling to Derby in der königliche Zug (prop DB)?

Derbygate - DafT waves the white flag?

Exciting news for fans of Open Government!

Here the details from the August edition of the Department for Transport's Structural Reform Plan Monthly Implementation Update.


But what's this?

Despite the Department for Transfer giving a date for completing commercial arrangements on the IEP fleet, not a word on achieving the same for Thameslink!

As items 2.3 (II) and 2.3 (IV) appear to have been redacted perhaps the date for commercially closing the export of thousands of British jobs is now officially an Euro-state secret?

Either that or Paper-knife has finally acknowledged that there is no point giving a date for something that guarantees electoral suicide.

Derbygate - the movie

At last some good news from Derby!

The local Labour party won an award at conference this week for being the best campaigning party in the country.

This was in recognition of its continuing campaign to save the UK's last rolling stock manufacturer and in recognition of the parliamentary petition, organised by Derby North MP Chris Williamson, which secured well over 50,000 signatures.




No doubt Petrol-head will be on-hand next week to open an envelope revealing a similar accolade from the Tories?

UPDATE: This from Rose Hill...

Remember earlier this year when DfT were concerned that the UK's studious compliance with EU rules was putting British companies at a disadvantage?

Well it seems like the fears were unfounded.

The UK is, after all, just as non compliant as the rest.

Witness yesterday's statement below, bringing us into line with 24 other member states:

"The European Commission has launched infringement proceedings against France and the United Kingdom over their failure to implement legislation to open the market for rail services in the Channel Fixed Link. Compliance with EU legislation will contribute to more competition, which will lead to better services and prices for passengers and freight traffic."

What a relief.

DfT feels Derby pain and awards new train order!

Finally some good news for Derby!

Clearly stung into action by the national campaign to save the UK's last train manufacturing plant the Department for Transfer has decided that a contract for up to 120 new vehicles will be awarded to the hard pressed Dusseldorf factory of Siemens (Is this right!?! Ed).

This from London Midland's website:

London Midland is pleased to announce today that it has selected preferred bidders for the manufacture, maintenance and financing of new rolling stock. This is intended for both London Midland and the Manchester to Scotland services operated by First TransPennine Express, which would result in significant additional capacity, making travel easier, more reliable and less crowded on some of the busiest sections of the rail network.

The preferred bidders are Siemens Plc for manufacture and maintenance of the new rolling stock, which are expected to be Desiro EMUs, and Angel Trains Limited for the necessary financing. We are now entering a period of exclusive negotiations with those companies. If those negotiations are brought to a successful conclusion, and parallel discussions with the Department for Transport confirm the business case and the necessary amendments to the London Midland franchise agreement, then a firm order is likely to be placed by early 2012.

Nice of London Midland take the heat off DfT by ordering the TPE vehicles as well. After all, what are franchises for? (Wolmar ibid)

No doubt Derby was unable to offer a suitable Electrostar product or had too much work on - what with losing the Thameslink order and all?

UPDATE: This from M'Duck...

This announcement is a little rich on the back of iDave's word's at PMQ's today:



A 'bright future' for Derby indeed!

UPDATE: This from Sir William A Stanier FRS...

Whilst applauding Railway Eye's continued support for our other Works in Derby, perhaps The Fact Compiler could advise whether Messrs Bombardier of Canada actually bid for this contract?

According to my successors, who are experts on the new twitterphone device, "You have to be in it - to win it!".

UPDATE: This from The Archer...

Sir Bill is right: You do have to be in it, to win it!

And maybe the Canuks didn't bid for the LM contract, LM after all already operate Siemens EMUs so Derby would have had little chance of success.

The real question though is whether Bombardier would have bid if they had known that LM would front a (larger) order for TPE on the back of LM's bid?

TPE don't currently operate any EMUs so Bombardier vs Siemens would have been a level playing field - perhaps that's what DfT were worried about.

• Thameslink = Siemens because of credit ratings.

• LM = Siemens because of the existing LM fleet.

• TPE = Siemens because ?

Anyone know?

UPDATE: This from a Mr Tony Miles...

TPE - because:

1) the sets will be based/maintained at the Siemens depot in Ardwick, Manchester.
2) and at the Scottish end the sets will looked after overnight by people who service other Siemens (class 380) sets and, more importantly,
3) it is thought probable that the TPE sets will eventually return to the LM franchise when more of the network in the NW is electrified and the TP franchise orders a much bigger fleet - so the 10 sets have to be compatible with the LM sets.

Does that answer the question?

UPDATE: This from Howard Wade...

What are the DfT (under the non de guerre of London Midland) going on about?

Bombardier did not bid, or, rather pulled out after pre-qualification, because of the small quantity and because a repeat order for Class 350/1 was the blindingly obvious solution - even to competitive procurment crazed civil servants.

Siemens has been the formally confirmed sole/preferred bidder for over a year.

All the stuff about European wide procurement is pure spin.

Virgin a shoe-in for West Coast Franchise!

Yet again Sir Beardie shows that he has his finger on the political pulse!

This from the Daily Torygraph...

Virgin Enterprise, which owns the trademarks and rights to the Virgin brand, is moving to Switzerland and is advertising for staff there. Although it is said to be a relatively small part of the business, Virgin insiders said it would become increasingly significant as the brand was franchised around the world.

A move surely designed to meet the requirements of our very own Department for Transfer, famed for off-shoring both jobs and franchises.

DafT confirms Japan a closed market

Good to see that the Department for Transfer continues to bat for Britain!

This from a written answer given in the House of Lords on the 20th July...

Lord Bradshaw (Liberal Democrat)
To ask Her Majesty's Government whether any discussions took place with, and any concessions were offered by, the Government of Japan during negotiations with Hitachi regarding the new intercity trains contract about the ability of British engineering companies to compete in Japan.

Earl Attlee (Whip, House of Lords; Conservative)
On each of the occasions that the Secretary of State has met the Japanese ambassador to the UK and other Japanese government officials, he has emphasised the importance and benefits of allowing British companies to compete on a level playing field for engineering and other contracts within Japan.

Furthermore, the Foreign and Commonwealth Office continues to ensure that this matter is raised in the EU-Japan regulatory reform dialogue.

So the answer is no then!

Let's try an easier question.

Can DafT confirm that the Japanese Ambassador's chair in the Secretary of State's office was at least made in the UK?

UPDATE: This from the Archer...

That's a little harsh.

The EU-Japan regulatory reform dialogue will I'm sure ensure that Germany can one day export rolling stock to Japan as well as the UK.

Strachan returns to beef up Dept for Transfer

This from the Brisbane Times...

The man in charge of southeast Queensland’s transport network for the past two years has quit to take on an Olympic challenge overseas.

Translink chief executive Peter Strachan will end his role in October after landing a key posting in the United Kingdom government.

As the UK Transport Department’s Director-General responsible for Major Projects, Mr Strachan is set to oversee transport for the 2012 London Olympics.

UPDATE: This from the Shunter...

Mostly harmless.

Villiers Vignettes - UK Supply Chain can go hang

This from Ithuriel...

Theresa Villiers did her best to talk up the prospects for the UK rolling stock market in a Westminster Hall debate debate on 12 July,

The fact that the coalition Government have secured funding for such a major programme of capacity enhancement will result in major opportunities, not just for Bombardier but for other train component and supply chain manufacturing businesses in this country.

Following its nomination, for example, as the preferred bidder for the intercity express programme contract, Hitachi has announced that it is locating its train manufacturing services for Europe at Newton Aycliffe in County Durham. That will provide significant opportunities for UK component manufacturing.

As has been said, if the Siemens Thameslink bid proceeds to conclusion, it will involve the creation of 2,000 jobs in the UK. It has indicated that it intends to use elements of the UK supply chain to supply its bid.

Message to the supply chain - don't worry about Bombardier, we're sure you can find something to sell to Japan and Germany.

Cruella really doesn't do 'industrial strategy', does she?

UPDATE: This from Howard Wade...

Replying to the debate on the Thameslink contract on July 12, Theresa Villiers said:

My hon. Friend the Member for Crewe and Nantwich (Mr Timpson) was concerned about the amount spent on consultancy. The bulk of that happened under the previous Government, but I agree that we need a more efficient approach to spending on consultancy in relation to procurement in the future. Since the general election the consultancy spend has been considerably reduced.

With Derby the home to the worlds leading railway consultancy the news for the City gets worse.

UPDATE: This from Dick Burton, Special Agent...

It's time that someone pointed out that a fair few of the 2,000 jobs that those nice people at Siemens are creating will be at Three Bridges and Hornsey and would also have been created by the gallant losers from Bombardier.

DfT to review competition weighting - Shocker

This from the Man Locked Out of His Room...

Siemens lose at something!

No doubt the Department for Transfer will conduct an inquiry into the weighting of such competitions to avoid future embarrassment?

UPDATE: This from a Mr Saltaire...

Interesting to note that not a single London based team won any Gold medals.

Clearly the alleged Northern diet of pudding, chips, peas and gravy works wonders.

Better let the UK 2012 team manager know!

Plaudits for the Department for Transfer - Shocker

This, unbelievably, from Gordon Gekko...

Time to stop whining about your cockamamie train factory, Limeys!

Don't you realise your Department of Transportation is right there with the zeitgeist.

That smart guy Osborne on the London Telegraph gets it:

The financing element gave Siemens of Germany a big advantage over the three other bidders because of its higher credit rating – one vastly superior to Bombardier's, which is below investment grade.

Siemens' debt is rated A+ by credit rating agency Standard & Poor's – six notches above Bombardier's BB+. The other two bidders, Alstom and Hitachi, are respectively rated BBB and BBB+.

So wise up!

It's about buying finance not goddam trains!

Who cares whether they are made of aluminum, plastic or, given your backward country, wrought iron.

Anyway, I've tipped my good buddy Donald Trump the wink and expect him to announce that he has bought the Derbytown site and plans to convert it into the Royal Derbytownshire Golf Club.

How's about that for a level playing field!

Remember, greed is good.

Wolmar on the nail!

This from the World's Greatest Living Transport Correspondent, writing in today's Grauniad...

It is difficult not to be pessimistic and see this as the end of an era stretching back nearly two centuries. However, the failure to give the contract to a home-based company is playing badly in the Tory party. It gives the lie to Cameron’s promise to support British manufacturing jobs.

Train travel is booming and there is an obvious lack of rolling stock. With a bit of will, extra carriages could be ordered to lengthen existing trains and possibly give hope to Bombardier that it should hold on with the prospect of getting the large Crossrail order in the middle of the decade.

It is not a lost cause, but it will take a fierce and vocal lobby to effect another Cameron U-turn. Steam will never return to Litchurch Lane, but perhaps, just perhaps, train manufacturing may remain there if enough pressure can be built up.

Indeed.

UPDATE: This from Steve Strong...

The Financial Times made the same point today:

There is, nevertheless, consensus that the government could take one measure to protect the Derby factory’s health. Bombardier won the UK’s last big train order, for the Stansted Express. But the order was placed in February 2009.

The Derby and Derbyshire Rail Forum, an industry group, insists such long gaps between orders contributed to Tuesday’s announcement. “The proposal to reduce Bombardier’s Derby workforce . . .  points . . . to the failure by successive governments . . . to address the peaks and troughs of rolling stock demand,” it said.

It appears that those who stuff the envelopes and those that open them have all been guilty of willful neglect.

UPDATE: This from Kelvin Chain...

Several industry observers have commented on Bombardier's dogged refusal to lobby "enthusiastically" for its Derby plant.

Compare this with Hitachi where Hammond quipped that the Japanese Ambassador had his own chair in the Secretary of State's office!

Hammond's envelope opening may have cost Bombardier both the IEP and Thameslink fleets but other opportunities remain.

There are 105 Class 220/221/222 sets all ready for the addition of a power car to enable them to use the wires and create much needed additional capacity.

There is also the need to replace the deeply loathed Pacers and make a start on a structured programme to replace the 15x fleets before they fall foul of the DDA regulations in 2020.

With Hammond, Cable and Cameron facing a growing backbench backlash over their assassination of the UK's last train manufacturer now is the time for Derby to start lobbying!

UPDATE: This from a Mr Tony Miles...

Didn't I see Transport Minister Theresa Villiers enthusiastically applauding Roger Ford's call for the electric vehicles for the 220/221/222 sets when she was stood on stage at the Modern Railways Innovation Awards last month?

Clearly a supporter and Bombardier must recruit her to their campaign team at once!

UPDATE: This from The Major...

I’m having a ‘senior moment’.

Can somebody remind me where Bombardier built the Voyagers?

I’m sure it was abroad...

UPDATE: This from Corporal Pike...

Indeed, the train building community in Bruges await the order for additional vehicles for 220/221/222 sets with baited breath.

As I'm sure do Eurotunnel!

UPDATE: This from a most insistent Mr Miles...

The class 221 units were built by Bombardier at their Bruges (Belgium) AND Horbury (Wakefield) plants with Alstom Onix propulsion kit made in Preston.

So, OK, that's another closed Bombardier facility but if Alstom can switch from making Pendolinos in Birmingham to Italy then Bombardier can make additional vehicles for the 22X trains wherever it likes, especially Derby.

And maybe create some more work for the excellent folk at Preston at the same time.

Eye applauds any solution that meets the Prime Minister's previously stated desire for a UK 'Manufacturing Revival'.

DafT to receive influx of rail experts tomorrow

Good news for those who care about our railways!

According to this afternoons' Lobby briefing: Civil servants have been told that they can bring their children into work tomorrow, if their child's school is closed because of strike action.

The Government estimates that of England's 17,000 schools - including academies - one third would close, one third would be partially open and one third would be open.

Perhaps a first for the Department for Transfer - Great Minster House will actually contain people who like trains!

But Eye fears tears before bedtime, when Mr Kipling refuses to allow anyone else to play with his expensive new trainset.

Thameslink fleet - Flipflop iDave holds out hope?

Much rejoicing in the East Midlands!

As iDave carries out yet another U turn, this time over Circus Animals, local politicos can already smell blood in their campaign to preserve the UK's last remaining train manufacturing plant.

Regular Eye readers will recollect that last week the Department for Transfer awarded the £2bn contract for new Thameslink trains to Siemens, who will build all 1,500 vehicles in errr... Germany!

Meanwhile, some 3,000 Derby workers employed by unlucky bidder Bombardier face an uncertain future of empty order books and hard times.

Happily, hell hath no fury like a region scorned.

Eye understands that the normally pliant East Midland's business and political communities are furious over this slap in the face, with several leading figures suggesting that the region should now seek to scupper Hammond's pet project - HS2.

HS2, according to Petrol-head, is all about economic benefits.

But with Thameslink decided without reference to local economies, there won't be many left to benefit from HS2. If, and when, it eventually crawls through Derbys' and Nott's'.

Still don't expect miracles. iDave only visits the region for photocalls, whilst Hammond couldn't even be bothered to announce, in person, that over 3,000 skilled UK jobs will vanish overseas.

Department for Transport to be renamed - Official

Exciting news from the Department for Transport!

Following the success of the Marsham Street Mandarins in awarding the IEP and Thameslink rolling stock contracts, as well as sanctioning the move of East Coast's call centre to India, the Government has decreed that the DfT is to be renamed in line with its new corporate objectives.

From henceforth the DfT will be known as the Department for Transfer and it will be expected to transfer 100% of all UK rail jobs, rolling stock orders and franchises overseas.

Cowardly Custard was unavailable for comment as he is auditioning for the role of McCavity's Cat.