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ALSTOM / EUROSTAR AGREEMENT BROKEN

It seemed useful to share with you an article in FOCUS RAILNEWS November retracing the steps of the tender Eurostar (see chronology) and the reasons for the deterioration of its relations with Alstom, the VOR so far.

Still very much in advanced information british newspapers! This is in possession of details and documents "shock".

The article is entitled "How Exclusivity Alstom and Eurostar Fell apart ": "Exclusive , how the agreement Alstom and Eurostar broke "

analysis of this trade dispute, [the midst of which GTE would never have been found involved if the eyes were not focused on intentionally security problems in the tunnel to justify the failure of Alstom ] is interesting in various locations, and why? :

1 - the arguments put forward by Eurostar on its consultation with the IGC for the preparation of its tender seem to be confirmed.

2 - The indictment of safety in the tunnel by train distributed power fails, the AGVs are too, but mostly Alstom was fully informed of the progress of the IGC and its acceptance in principle of the DPS **. (See 21.04.10 in the timeline).

3 - The IGC itself in writing to the European Investment Bank-EIB-le 29.09.2010 confirm him for what amounts to recognize the validity of the bidder trains Alstom and Siemens; mail This included his opinion on the 2 offers.

** DPS (Prerequisite Document Security) is an important step in the approval of a new material; recall that the two main points to be revised to allow other trains that Eurostar (currently only empowered) to circulate in the tunnel are: acceptance of the distributed power and the study of the length of trains associated with the problem of divisibility. However, this acronym in the article below refers to "distributed power .

4 - It follows from the three preceding paragraphs that the modification of rules for access to the Channel Tunnel seems well advanced and that other operators will be allowed to borrow. The logical consequence of this development was the study demand for Deutsche Bahn and the authorization by the IGC security testing by ICE on Oct. 19 last, the first stage of approval.

5 - Only this aspect of the case for GET. The choice of supplier by Eurostar, Eurotunnel client is independent of the IGC. This commission, it is worth remembering, has the sole authority and represents the states on security issues in the Channel Tunnel! Service very well paid by GET (€ 5M per year). The remarks by former Secretary of State for Transport who asked to have it headed by a European body, is heavy meaning: is it to question its work simply because it offends the sensibilities of the French now, where are we to understand that ultimately the European Agency for Safety Rail can replace her and savings to live GET!

6 - Choice and dislike the commercial turned into a state affair! or art and how to conflate very different situations. You can not see still not clear how existing evidence of a future approval of new equipment by the IGC could be swept under false pretenses ... ...

Exclusive HOW ALSTOM and EUROSTAR FELL APART
(Railnews Focus, Issue 5 - 17 novembre 2010 – Page 4)

DETAILS of the fractured negotiations between Eurostar and Alstom for a fleet of High Speed trains have been seen by Railnews Focus, and reveal how the discussions slowly deteriorated over a number of months.

Eurostar roused French fury by choosing ten Siemens Velaros (right) for its nextgeneration fleet, which from 2014 should be linking London with such new destinations as Amsterdam, Lyon and Geneva.

The decision to buy from Germany led to French protests at the highest level, with the President himself said to be involved in gearing up for a challenge to the contract.

French train-builder Alstom has already taken the matter to the High Court in London, only to be slapped down after the week-long hearing when the judge refused the company’s application for an injunction against Eurostar on the grounds that the procurement process was ‘flawed’, and that awarding the contract to Siemens would cause reputational damage to Alstom.

The French company has had a monopoly on building TGVs for SNCF, of which the Eurostars were a cut-down version.
The Eurostars have been in service since1994 and have generally performed well in spite of a few ignominious failures, the worst of which saw no fewer than five of the trains stranded helplessly in the Channel Tunnel last December after heavy snow in France had penetrated their engines.

But the present Eurostars are unsuitable for wandering further afield in Europe, because there is no room left on board them for the further layers of signalling and traction equipment which would be needed for operation in countries like the Netherlands and Switzerland.
The new trains will be bigger, because they will not need to fit within the smaller British structure gauge that the original Eurostars encountered on their way to Waterloo.

Neither will they need to draw current from a third rail.

But the new details reveal that Alstom was dangerously complacent about the prospective Eurostar order, and that panic slowly set in when Alstom began to realise that building more trains for Eurostar could not be considered an easy ride after all.

The story isn’t over. Last week Alstom renewed its legal challenge, and industry sources say the company is trying to get a further hearing in October 2011, when the present tender would have run out of time.

It remains to be seen whether Eurostar can fend off these alleged delaying tactics, and expand beyond its present boundaries as planned in four years from now.

CHRONOLOGIE :

2009 : Eurostar invites tenders for a new fleet of trains, with no publicity.

- 4 December 2009 Eurostar gives feedback to Alstom on the low quality of its bid which “lacked detail throughout the bid in all areas – Alstom experience not showing through as we would have expected ...”.

- 31 March 2010 The Intergovernmental Commission (IGC), responsible for safety in the Tunnel, writes to all parties involved in the IGC consultation confirming that its consultation generally supports the use of trains with distributed power systems.

“The IGC has accepted the principle of this advice and ... has invited Eurotunnel to submit an operating rule incorporating these requirements ... the IGC expects to be in a position to accept this new operating rule.”

- 7 April 2010 The IGC asks Eurotunnel to propose a new operating rule.

- 16th April 2010 Phillippe Mellier of Alstom meets Eurostar and admits he is not happy with Alstom's bid. He wants to make improvements and commissions an internal audit.

- 21 April 2010 Alstom writes to Eurostar saying that the uncertainty regarding the Tunnel acceptance criteria had been ‘eliminated’.

- 29 September 2010 IGC writes to the European Investment Bank saying that DPS in the Tunnel would be acceptable. Scoring of Alstom v Eurostar shows the Siemens bid is significantly superior.

- 29 October 2010 Judge concludes that Alstom willingly proceeded with their bid knowing of the uncertainty about the IGC rule changes. He also reinforced that Alstom had themselves confirmed in writing to Eurostar that the uncertainty around DPS in the Tunnel had been ‘eliminated’ (21st April 2010).

Judge says that Alstom and Siemens were in an equal and non-discriminatory position of uncertainty (over DPS in the Tunnel) which had been properly managed by Eurostar's specification. Judge also talks at length about the importance of not delaying the process by going to trial because of the negative impact that it would have on Eurostar, and that Alstom's “internal audit ... indicates at least that Alstom was, to a significant extent, the author of its own misfortune in failing to take the bid adequately seriously and according other projects higher priority”.


Alstom audit :

Alstom internal audit demonstrates that Alstom knew it had given the Eurostar bid insufficiently high priority. Key points include :

• ‘Stop and go’ in tendering activity whereas Eurostar is sticking to timetable
• Priority given to other tenders.
• Project not perceived as a priority by Product Line
• “... but of the highest priority for Siemens“

Channel Tunnel safety changes: the big issues

- Distributed traction : (referred to above as DPS)

Having motors under each coach rather than in separate power cars at each end of the train. The objection is a greater fire risk. Counter argument is that DPS is standard in many countries – including Britain – without noticeable problems.
DPS is to be accompanied by automatic fire suppression systems. Irony Alstom’s own product would be DPS, like the Siemens Velaro -

- Length of trains and fire retardant partitions

Eurostars are ‘walk-through’ trains which wherever they stop will always be next to at least one Tunnel emergency exit. Discussions are taking place over how long trains have to be, and whether the fire stops between coaches can be safely reduced from the current 30min requirement. (German ICEs provide 15min.)


Qu'en est-il de la signature du contrat avec Siemens ?

Extraits :

Eurostar said on November 11th that it had agreed to postpone the contract signing “for a further short period” while the French and British governments engage in “a constructive dialogue [which it believed to be close to a conclusion] on the important, wider public interest issues raised.” It indicated that this did not mean waiting until a High Court hearing next October.

Safety matters in the tunnel are overseen by an Intergovernmental Commission (IGC), whose membership is split equally between of the two countries, and it has already agreed to a change in the safety rules. So suggestions that the French side may block the deal are given little weight by insiders.

The IGC has Asked Eurotunnel The operator of the tunnel Itself, to revise rules to Accommodate icts Train With Distributed Power; But The rule-change is Not Likely to Go Through Until February 2011 At The Earliest. Eurostar, owned 55% by SNCF, The French state-owned national railway, IS set up as independent business year concerned, So It Can not Be Expected to Act According To French national interests ".

Eurostar said November 11, 2010 (it was the day after the first hearing before the High Court which must decide on the fund) that it agreed to delay signing the contract "for a short period while governments French and British engage in a constructive dialogue [which is close to a settlement] on the important, broad public issues that were raised "However, it was clarified that this did not mean waiting for the hearing before the High Court October.

Security issues in the tunnel under the jurisdiction of the IGC, whose members are equally divided between the two states, and it had already accepted the changes in safety rules. Also, contingencies for the French to block market are considered very low by insiders.

The IGC requested to Eurotunnel, the operator himself, to revise its rules to make them compatible with distributed power trains. But these changes should not be effective until February 2011 at the earliest. Eurostar up to 55% at the station, although regarded as a private commercial enterprise, so we can not consider that it obeys the French national interests.