Deals this Week: Alstom, Bombardier Transportation, Siemens – A Review of Significant Railway Contracts

The global railway industry is a dynamic sector marked by continuous technological advancements and substantial infrastructure investments. This article examines several significant contracts awarded this week, highlighting the strategic moves of major players such as Alstom, Bombardier Transportation, and Siemens. These deals showcase the evolving landscape of the industry, focusing on the increasing demand for modern rolling stock, expansion of automated people mover (APM) systems, and the critical role of robust infrastructure development, particularly in freight rail. We’ll analyze the implications of these contracts on the respective companies, the technological advancements demonstrated, and the wider impact on the railway industry and associated economies. The strategic partnerships and mergers that are emerging within the industry will also be explored, demonstrating the level of consolidation and cooperation necessary to navigate the complexities of large-scale projects and technological innovation.

Alstom’s Significant Italian Contract

Alstom secured four contracts totaling €330 million ($407 million) from Trenitalia (the primary Italian train operator) for the delivery of up to 54 Coradia Stream regional locomotives. These locomotives, designed for deployment in the Veneto, Liguria, Marche, and Abruzzo regions of Italy, will each boast a maximum seating capacity of 300 passengers and will be notable for their 95% recyclability, demonstrating a commitment to sustainable practices. This contract underscores the growing demand for modern, efficient, and environmentally conscious rolling stock in the European rail market.

Bombardier’s Expansion of Phoenix Sky Train

Bombardier Transportation won a $305 million contract from the city of Phoenix for Phase 2 of the PHX Sky Train APM system expansion at Phoenix Sky Harbor International Airport. This project includes the construction of two new stations, expansion of the APM maintenance facility, and associated infrastructure improvements. This contract showcases the expanding market for automated people mover systems in airports and other transportation hubs, reflecting a global trend toward efficient and automated passenger transport solutions. The success of this project will be a crucial benchmark for future similar initiatives in other major airports across the globe. The project will significantly enhance the airport’s transportation infrastructure and overall passenger experience.

Siemens and Alstom’s Strategic Business Combination

Siemens’ business combination agreement (BCA) with Alstom to integrate their mobility businesses marks a significant event in the railway industry. The newly formed entity, Siemens Alstom, will be headquartered in Saint-Ouen, France, combining the strengths and resources of two industry giants. This consolidation aims to expand customer reach and solidify their position as major players in the global rail market. The combined entity’s scale and resources are expected to improve efficiency, boost innovation, and foster a more competitive railway industry landscape. This demonstrates a trend toward larger, more integrated companies that can better handle large, complex projects.

Infrastructure Development: The Theemsweg Freight Rail Link

The Port of Rotterdam Authority awarded a contract to the SaVe consortium (comprising Iemants, Mobilis, Besix, Dura, Hollandia, and Vermeer) for the construction of a substructure for the Theemsweg freight rail link. This project involves the construction of an elevated railway viaduct and two steel bridges, expected to be completed by 2020. This highlights the critical need for upgrading freight rail infrastructure to meet growing demands for efficient and reliable goods transportation. Such projects are essential for optimizing the flow of goods and maintaining economic competitiveness, emphasizing the interconnectedness of rail infrastructure with broader logistical networks and overall economic activity.

Conclusion

The contracts reviewed in this article provide a snapshot of the current dynamics in the global railway industry. Alstom’s substantial order from Trenitalia demonstrates the continuing demand for modern regional rolling stock, particularly focusing on sustainable and efficient designs. Bombardier’s win in Phoenix underscores the growth of the APM market, highlighting the importance of technological advancements in improving airport transportation. The strategic partnership between Siemens and Alstom signifies a significant consolidation within the industry, aiming to create a more robust and competitive global player. Finally, the Rotterdam freight rail link project emphasizes the vital role of infrastructure development in supporting efficient freight transport. These developments collectively indicate a dynamic market driven by technological innovation, infrastructure investment, and strategic alliances, creating new opportunities and challenges for the industry’s key players and paving the way for a more efficient and sustainable future for rail transportation worldwide. The interconnectedness of these projects—from rolling stock to infrastructure and strategic partnerships—demonstrates the systemic nature of large-scale rail projects and their significant impact on regional economies and global trade. The future of the railway industry hinges on continued innovation, strategic planning, and commitment to sustainable practices, all factors reflected in the projects analyzed above.