National Express pulls out of £1bn German rail contract

BIRMINGHAM-based public transport group National Express has pulled out of a rail contract in Germany which could have been worth £1bn to the business over the next decade.

In February 2015, the Bavarian Railway Authority (BEG) confirmed National Express as the preferred bidder to operate all of Nuremberg’s S-Bahn rail services. The decision followed a competitive tender.

National Express said a central aspect of its winning bid was the introduction of new trains for the start of the contract in December 2018.

In a statement today, National Express said obstacles placed in its path by the incumbent operator of the service, Deutsche Bahn, had left the company with no option other than to withdraw.

It said: “The introduction of these new trains (would) significantly improve the service experienced by customers and underpin passenger growth.”

However, it said the stalling tactics employed by Deutsche Bahn would mean the introduction of the new trains being “substantially delayed” and could also lead to National Express incurring significant additional costs.

“We have therefore informed BEG that it is no longer in the interest of National Express and our shareholders to proceed. The authority understands and respects our decision,” it said.
 
“We remain fully committed to the German rail market and are planning to submit a number of bids within the next year. Our prudent and disciplined approach to bidding will continue.

“We remain proud of our existing operations on the Rhine Munster Express and look forward to commencing the two new Rhine Ruhr Express contracts in the coming years. We hope to work with BEG again in the future.”

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