Saudi Arabia Cancel Talgo HS Train Contract

Saudi Arabia Cancel Talgo HS Train Contract
July 19, 2015 5:17 pm

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 is a railway information and news platform. Website presents from all around the world railway sector news, developments, projects and tender for the sector specialists. Railwaynews supports to industry events and announced them for potential participants. Railwaynews plans to collecting data from all around the world, about railway infrastructure, rolling stock, railway transportation datum, geographical datum to present for railway professionals for short term. Railwaynews will build new platforms aims to high value railway business environment for all railway specialists, railway fans and especially railway suppliers and their decision makers. Railwaynews presents whole information from rail professionals to rail professionals.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

No comments yet, be the first filling the form below.