£1 billion Crossrail rolling stock deal will boost SMEs

Will Green is news editor of Supply Management
6 February 2014

6 February 2014 | Will Green

At least a quarter of the £1 billion contract awarded to Bombardier to provide trains for the Crossrail project will be targeted to SMEs in the supply chain.

The deal, between Transport for London (TfL) and Bombardier, will support 760 manufacturing jobs and 80 apprenticeships, while 74 per cent of the contract spend will remain in the UK.

Meanwhile, the firm and all its suppliers are committed to paying their London-based employees the London Living Wage, a requirement of all TfL and Crossrail contracts, TfL and the Department for Transport said in an announcement.

All bidders were asked to detail how they would engage with their wider supply chains and how they would maximise opportunities for SMEs, and Bombardier has confirmed all trains will be manufactured and assembled at its plant in Derby.

Bombardier beat off competition from Spanish firm Construcciones y Auxiliar de Ferrocarriles and Hitachi Rail Europe Limited to win the contract, which involves the supply, delivery and maintenance of 65 trains and a depot at Old Oak Common in west London. Construction of the depot will support 244 jobs and 16 apprenticeships, and 80 jobs will be needed to maintain the trains.

Each train will be 200 metres long with nine carriages and able to carry up to 1,500 passengers.

TfL will award the contract for the operation of Crossrail services at the end of 2014 and the new trains will be introduced to the existing rail network from May 2017 before using Crossrail lines from December 2018.

Andrew Wolstenholme, chief executive of Crossrail, said: “Crossrail will transform rail services in London and the south-east. Procurement of the rolling stock and depot is just one more step in delivering this new railway and making it a reality for millions of passengers.

“Crossrail Limited has conducted this procurement in a fair, objective and transparent manner and in full compliance with the regulatory framework.”

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