Saudi Arabia Cancel Talgo HS Train Contract
The spanish rolling stock supplier Talgo said on Wednesday that Saudi Arabia had cancelled a $201 million contract for six high-speed trains it awarded to the Spanish train maker in February.
Only four months after announcing the order, the Saudi Railways Organization (SRO) has cancelled this Wednesday the contract of six high speed trains awarded to Talgo.
As part of the contract signed last February between Talgo and the Saudi Railway Organization (SRO), Talgo had to provide 6 new trains with 13 coaches to cover the Riyadh-Damman railway line.
The company said it would not materially affect its financial projections for 2015 and 2016, but this did not prevent the collapse in stock market, losing 10.6% yesterday in the Madrid stock exchange.
Markets worry because the company is also the rolling stock supplier of the most important raiway project in Saudi Arabia led by the Saudi Railways Organization, the “Haramain” high speed line.
This project under construction is much more important and strategic for Talgo, who got an order to supply 36 Talgo 350 trainsets suitable for 320 km/h operation.
Source : MenaRail