Big order boost for Bombardier

MIDLANDS train builder Bombardier has been given a coveted Christmas present with the news that it has won a contract to supply 40 trains to Southern Railways.

The Government announced its backing for the train order this morning.

The Southern deal could lead to more work for the Derby-based firm as the Government is also supporting Southern’s tendering process for a 116 new electric carriages with the option for a further 140.

Transport secretary Patrick McLoughlin – a Derbyshire MP – said:  “Our support for Southern will not only boost capacity but help secure British jobs. The deal for the 40 new carriages, helped along by my Department, demonstrates the Government’s ongoing commitment to invest in Britain’s railways.

“My officials are working with Southern to accelerate their procurement process for up to 256 carriages because our ambitious electrification plans requires additional rolling stock on the network.”

In December 2011 Southern Railway announced its plans to buy 130 carriages from Bombardier to run on services in south London, Surrey, Sussex and Kent. Southern expects these will be in service by December 2013. As part of this deal Southern had the option to buy the additional 40 carriages at a later stage.

If Southern progresses with the procurement, these 116 new trains, and potentially 140 more, could initially be used on the Thameslink routes. Once the expected new Thameslink trains are operational these carriages would be moved to the newly electrified routes, which could include the Midland Main Line to Corby and North Transpennine Routes.

Early this year Bombardier confirmed that it will be staying in Derby, at least until 2014.

But it warned its 1,600-strong workforce that it would need to win new contracts if the Litchurch Lane factory is to remain open for the long-term.

The firm had been weighing up its options since the Government decided to award the £1.4bn Thameslink contract to German firm Siemens in summer 2011. Bombardier’s failure to secure that contract led to it shedding 1,400 jobs.