National Express Bavaria

[WatcherZero]

National Express has pulled out of a contract to operate the S-Bahn services in Bavaria from 2018 that it won last year. Its accusing the current incumbent Deutsche Bahn of poisoning the well by delaying the order of new trains that featured in its bid.

National Express pulls out of £1bn German rail contract
25th October 2016


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.


National Express lands £1bn German contract
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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.
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“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.”

http://www.thebusinessdesk.com/west...ss-pulls-out-of-1bn-german-rail-contract.html

 

[Groningen]

I read that for National Express it was not possibe to get the new trains in December 2018. Yes; fight first in court and make it impossibe to get the new trains delivered in time.

 

[AlexNL]

I think that the decision to pull out of this tender entirely is a good one. National Express can't deliver anymore, because of all the delays which were encountered during the award of this contract.

It wasn't until after summer that the final go-ahead to award the concession to NX was given. In the mean time, there had been yoyoing about the award: it was thrown out at first by a competition authority (?) and later reinstated. Given all the uncertainties, NX could not place the bid as there would be a chance that they'd end up with a bunch of useless trains. Canceling the order with Škoda would've been possible, but not without significant costs for NX.

Now let's hope that this doesn't automatically give DB Regio an extension for lots of years... that'd be rewarding them for bad behaviour.

 

[jayiscupid]

I'm amazed DB aren't being reprimanded for their behaviour. This isn't the first time they've pulled this stunt when they've lost a tender.

 

[gordonthemoron]

I thought that DB weren't that fussed about losing S-bahn/regio contracts as they've lost loads in the past few years

 

[AlexNL]

DB are less concerned about RB/RE contracts (although they still want to win), but they certainly don't want to lose S-Bahn contracts as they see this as a very important business.

 

[Groningen]

I read in a local newspaper in Nuernberg that the S2 has now even to wait longer for new trains.

 

[Bletchleyite]

Sounds very much like the West Coast debacle over here. (Our franchises are in some ways similar to the German contracting system, but of course over there it applies only to regional services and is not let nationally).

 

[Groningen]

At the end of this year the Bayerische Eisenbahngesellschaft (BEG) will make a choice who takes NX place for the S-bahn in Nuernberg.