Siemens wins $2 billion contract to construct new London Tube trains

LONDON (Reuters) – A division of Germany’s Siemens (SIEGn.DE) has been awarded a contract price about 1.5 billion kilos ($2 billion) to design and construct 94 new trains for the Piccadilly Line on London’s metropolitan prepare community, generally known as the Tube.

A person takes an image of the cockpit of a Desiro City passenger prepare by Siemens Mobility on the InnoTrans railway know-how commerce truthful in Berlin, September 25, 2014. REUTERS/Thomas Peter

Transport for London (TfL), the general public physique in control of the Tube, stated the award of the contract would enable Siemens Mobility Limited to push forward with its plan to construct a brand new manufacturing unit in Goole, east Yorkshire, in northern England.

“The Siemens Mobility Limited factory would employ up to 700 people in skilled engineering and manufacturing roles, plus up to an additional 250 people during the construction phase of the factory,” TfL stated in a press release.

“As a result, around 1,700 indirect jobs would be created throughout the UK supply chain,” it stated.

Siemens stated in March it had leased 67 acres (27 hectares) of land in Goole with a view to constructing a 200-million-pound ($266-million) prepare manufacturing unit. The plans had been topic to the company’s success in securing main future orders, it stated on the time.

Siemens Mobility Limited is Siemens’s British subsidiary for its trains and transport know-how business.

FILE PHOTO: An Underground tube signal is seen alongside a clock on London King’s Cross railway station, London, Britain, January 26, 2018. REUTERS/Peter Cziborra/File Photo

TfL stated it had additionally obtained bids from a three way partnership of Canada’s Bombardier (BBDb.TO) and Japan’s Hitachi (6501.T) and from France’s Alstom (ALSO.PA) when the bidding course of started in 2016.

Subsequently, Siemens and Alstom introduced that their rail companies had been because of be merged.

While the order is for an preliminary 94 trains for the Piccadilly Line, TfL stated the contract was being awarded on the expectation that the producer would additionally construct trains of the identical design for 3 different so-called Deep Tube traces.

The Piccadilly Line, which carries greater than 700,000 passengers per day, is the primary of the 4 Deep Tube traces to obtain a much-needed improve.

The new trains, anticipated to be delivered from 2023, shall be 6 meters (yards) longer than the present ones and shall be designed to optimize area inside the constraints of the slim Deep Tube tunnels.

The 86 trains at present working on the Piccadilly Line had been launched in 1975 and had a design lifetime of 40 years. They are actually one of many oldest prepare fleets in passenger service in Britain.

The growing older trains and signaling system prohibit the present rush hour service on the Piccadilly Line to 24 trains per hour. That will go as much as 27 trains at peak instances by the tip of 2026, after the brand new trains are introduced into service, TfL stated.

Combined with a signaling improve and the acquisition of extra trains, peak interval capability on the busiest central sections of the Piccadilly Line will enhance by greater than half by the tip of the 2020s, that means an extra 21,000 clients will be capable to board trains each hour at rush hour.

“This long-term sustainable investment will support London’s growing population, which is set to increase to 10.8 million by 2041, supporting new jobs, homes and growth,” it stated.

Sabrina Soussan, CEO of Siemens Mobility, stated the company was thrilled by the announcement.

“We can drive down lifecycle costs and significantly improve the passenger experience,” she was quoted as saying by TfL.

A Siemens spokesman in Germany declined to remark.

($1 = zero.7528 kilos)

Reporting by Estelle Shirbon in London and Ludwig Burger in Frankfurt; Editing by Adrian Croft and Ros Russell

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