Alstom

Hydrogen
 Environment and Sustainability, Passenger Rail, Rail Supply, Rolling stock & Rail Vehicle Design

Hydrogen train test in the Netherlands meets all requirements

Hydrogen trains have met all four test requirements in a trial conducted in the Dutch province of Groningen.

Local operator Arriva trialled Alstom’s Coradia iLint trains, in partnership with railway infrastructure manager ProRail and energy company Engie over two weeks in March, 2020. The trains were tested on the line between Groningen and Leeuwarden.

The trial had four objectives for the hydrogen-powered trains: authorisation by the Dutch national safety assessor to run on the Dutch railway network; zero emissions in the commercial service of the current timetable; quick and easy refuelling; and familiarising the general public with hydrogen mobility.

On all four objectives, the trains met the requirements.

“The tests have demonstrated how our hydrogen train is mature in terms of availability and reliability, providing the same performance as diesel equipment, and with the benefit of low noise and zero emissions. The Coradia iLint hydrogen train supports the transition towards global sustainable transport systems,” said Bernard Belvaux, managing director, Alstom Benelux.

To meet the commercial service performance requirement, the trains were tested on an all stations service and an express timetable. The trains were tested on fuel consumption, compatibility with infrastructure, acceleration, braking, docking, and maximum speed. All went without a hitch.

During the trials, the trains were found to be significantly quieter than current diesel trains. Drivers were also familiarised with the trains and found them smooth, comfortable, and easy to drive.

Powered by hydrogen produced from renewable energy, refuelling went faster than expected and was conducted safely.

The Netherlands follows Germany in testing Alstom’s hydrogen-powered trainsets.

“After Germany, the Netherlands is the second country in Europe where the Alstom’s hydrogen train has proven itself a unique emissions-free solution for non-electrified lines,” said Belvaux.

Other trails and plans for implementation are being developed in Austria, Italy, and the UK.

Alstom results
 Rolling stock & Rail Vehicle Design

Alstom and Bombardier sign agreement for sale with revised price

The purchase of Bombardier Transportation by Alstom has taken the next step forward, with a definitive Sale and Purchase Agreement signed by the two parties.

The sale involves a €300 million ($486m) write-down of the value of Bombardier Transportation from the figure quoted in the Memorandum of Understanding which announced the sale process.

When the MoU was announced in February, Bombardier Transportation was valued at between €5.8 and €6.2 billion ($9.4 to $10bn). The revised price values Bombardier’s transport business at €5.5 to €5.9bn ($8.9 to 9.5bn). Alstom expects the proceeds will likely amount to up to €5.3bn based on post-closing adjustment and obligations.

Henri Poupart-Lafarge chairman and CEO of Alstom said the sale would strengthen Alstom’s presence in the market.

“Bombardier Transportation will bring to Alstom complementary geographical presence to broaden Alstom’s commercial reach in key growing markets, strong product complementarities in rolling stock, strategic scale in services and signalling, industrial capacity in key countries, a leading portfolio offering and additional R&D capabilities to invest in green and smart innovation,” he said.

Éric Martel, president and CEO of Bombardier Inc said the sale would adjust the profile of the business.

Today’s announcement marks a significant milestone towards achieving our near-term priorities and repositioning Bombardier as a pure-play business jet company,” he said. “The proceeds from this transaction will allow us to begin reshaping our capital structure and start addressing our balance sheet through debt paydown, so that we can achieve the full potential of our incredibly talented employees and our industry leading business jet portfolio.”

According to a statement from Alstom, the company expects to find synergies of €400m ($648m) in four to five years after the sale.

The sale is expected to be closed in the first quarter of 2021 with the sale having cleared antitrust processes in the EU as well as Australia.

hydrogen
 Environment and Sustainability, Passenger Rail, Rolling stock & Rail Vehicle Design

Hydrogen trains trialled in passenger service in Austria

The next European operator to begin trails of hydrogen trains will be Austrian rail company ÖBB.

In partnership with Alstom, ÖBB will run the hydrogen-powered Coradia iLint in passenger service until the end of November in a trial.

The Coradia iLint has been trialled successfully in Northern Germany and trials in the Netherlands have been conducted in 2020. Agreements with rail companies in Italy and the UK have also been signed in 2020 to progress the delivery of hydrogen-powered rollingstock in those countries.

In the Austrian trial, the trains will be run on unelectrified lines in the south of the country which are geographically challenging.

Jörg Nikutta, Alstom’s CEO in Germany and Austria said the trains would fill a gap in the decarbonisation of rail.

“The train’s emission-free drive technology offers a climate-friendly alternative to conventional diesel trains, especially on non-electrified lines.”

Andreas Matthä, CEO of ÖBB-Holding AG said the company was looking at new technology that could make rail more environmentally friendly.

“As the largest climate protection company in Austria, we are actively shaping the mobility of the future with technological alternatives.”

The Austrian trial comes as the UK rail sector looks to fully decarbonise, with hydrogen-powered trains to play a key role. The Interim Traction Decarbonisation Network Strategy, put together by Network Rail in partnership with the rail industry, sets out which lines will be electrified and where alternative traction technologies will be used to meet the net zero carbon emissions target.

The strategy identified 11,700 kilometres of track where electrification would take place, battery operation on 400km and hydrogen on 900km. To do this, between 150 and 200 battery and hydrogen trains would be required.

 Rail Supply, Rolling stock & Rail Vehicle Design

Berejiklian criticised for NSW train manufacturing comments

NSW Premier Gladys Berejiklian has been criticised for comments that local manufacturers of rollingstock are not up to scratch.

On Wednesday, August 26, Berejiklian said at a media conference, “Australia and New South Wales are not good at building trains, that’s why we have to purchase them.”

The comments drew immediate push back from the NSW Labor party, with deputy leader Yasmin Catley saying that NSW should be investing more in locally manufactured public transport vehicles.

“Instead of running down our local industries at press conferences, Gladys Berejiklian should be giving them the opportunity to build our new ferries and trains,” Catley said.

Minister for Transport Andrew Constance backed his leader’s comments, reportedly estimating the cost difference at 25 per cent more for locally manufactured trains, due to higher energy, labour, and raw material costs.

“I think most people know the car industry, the train industry, in terms of manufacturing here in Australia; we don’t have it, and there’s a reason for it,” said Constance.

Following these remarks, the NSW Labor leader, Jodi McKay announced that Labor would introduce a NSW Jobs First Bill, which would require tenderers on government contracts to support NSW jobs and industries.

The dispute has come as NSW puts the first of its second order of Chinese-manufactured Waratah Series 2 trains into service. The Korean-made New Intercity Fleet, which are replacing the Western Sydney-made V-Set and allowing the Newcastle-made H-Set to enter suburban service, are also in the early testing stage.

CEO of the Australasian Railway Association Caroline Wilkie said a national procurement process would enable locally-built trains to become more competitive with their overseas counterparts.

“The NSW Government’s procurement choices have eroded the manufacturing sector and make it harder for local operators to compete,” said Wilkie.

“Better coordination with their counterparts in other states and territories would see more trains manufactured locally and improve efficiencies and cost profiles across the life of the asset.”

Wilkie noted that only looking at the upfront cost of purchasing rollingstock ignored the cost of lifecycle support, and a whole of life cost approach should be taken.

In 2019, the Western Australia government signed an agreement with Alstom to manufacture 246 railcars in Bellevue, in eastern Perth. The contract will see at least 50 per cent of the railcars built locally and 30 years of maintenance. Announced in December 2019, the contract was $347 million under the $1.6 billion budget.

Wilkie said that with overseas trade and travel limited due to COVID-19, the value of local manufacturing was greater than ever.

“A nationally consistent procurement process would benefit both state government purchasers and the rail manufacturing industry itself,” she said.

“The NSW government says it is open to working with other state governments and industry to strengthen and standardise procurement processes – it’s now time for them to act.”

manufacturing
 Freight Rail, Passenger Rail, Rail Supply, Rolling stock & Rail Vehicle Design

WA funds local manufacturing and maintenance of railcars

The Western Australian government will ensure more rollingstock maintenance and manufacturing happens in WA, with a $40 million investment and a new focus on building iron ore cars in the state.

$40m will go towards the maintenance of Western Australia’s new Australind fleet with the construction of an expanded Metronet Railcar Manufacturing and Assembly facility in Bellevue.

WA Premier Mark McGowan and Minister for Transport Rita Saffioti announced that the Bellevue site will be grow to include the maintenance of the new diesel multiple units (DMUs), manufactured by Alstom, which will replace the current Australind fleet.

The Bellevue facility will also service the Prospector and AvonLink railcars, WA’s infrastructure diagnostic vehicle, and track maintenance and rail shunting locomotives.

WA had previously brought railcar manufacturing back to the state with the announcement that 246 C-series railcars will be built with 50 per cent local content, said McGowan.

“One of my Government’s key election commitments was to return railcar manufacturing back to the Midland area,” he said.

“We’re delivering on this and now we’re doing what we can to ensure we’re removing interruptions in supply chains and allowing local businesses to take advantage of the great manufacturing opportunities in our State.”

Transport Minister Rita Saffioti said the scale of the project will provide opportunities for local workers and suppliers.

“Around 250 railcars will be produced at Bellevue over the next decade, while it will also serve as a permanent maintenance facility for the expanded METRONET fleet,” she said.

“This new $40 million diesel maintenance facility will be a new key element to the services provided at Bellevue and will provide local job and training opportunities for local Western Australians.”

In a joint statement, McGowan and Saffioti said that an “action group” will be created to investigate the viability of manufacturing and maintaining iron ore railcar wagons that service the iron ore rail network in the Pilbara. This manufacturing could occur in the Pilbara or other parts of WA. Currently, manufacture of iron ore wagons often happens in China.

The study will look at how initiatives can support the steel fabrication industry in WA, and maintenance opportunities for new and existing ore wagons.

A contract for the construction of the diesel maintenance facility will be awarded next year.

Construction of the main manufacturing site is underway and is expected to be completed later in 2020. Local manufacturers are now able to register to supply components to the railcars.

Alstom results
 Passenger Rail, Rail Supply, Rolling stock & Rail Vehicle Design, Signalling & Communications

EU clears Alstom’s acquisition of Bombardier

The European Commission (EC) has approved the acquisition of Bombardier Transportation by Alstom, subject to commitments made by Alstom.

Since the acquisition was announced in February 2020, discussions have been ongoing to determine how the merger of the two major rail manufacturing companies would satisfy EU merger laws.

Last month, Alstom proposed a range of measures to get the deal over the line, unlike the previously deal to merge with Siemens, which fell foul of EU antitrust laws.

In a statement, the EC accepted Alstom’s proposal, noting that the two companies compete in areas such as very high speed, mainline and urban rollingstock, as well as mainline and urban signalling.

With the acquisition approved, Alstom will sell its Coradia Polyvalent range of mainline trains and the associated production facilities in Reichshoffen, France. Bombardier’s Talent 3 train series will also be sold, and part of the production facilities for these trains in Hennigsdorf, Germany.

To satisfy EC concerns in the area of high-speed rail, Alstom will divest Bombardier’s stake in the Zefiro V300 joint venture with Hitachi.

In the field of signalling, Alstom will allow competitors access to some onboard signalling units.

EC executive vice-president Margrethe Vestager said the acquisition would enable continued competition in the European rail market.

“Going forward, a stronger combined Alstom and Bombardier entity will emerge. At the same time, thanks to these remedies, the new company will also continue to be challenged in its core markets to the benefit of European customers and consumers.”

In a joint statement, both companies welcomed the decision of the EC.

“The divestitures will comply with all applicable social processes and consultations with employee representatives’ bodies,” the statement read.

“The transaction remains subject to further regulatory approvals in several other jurisdictions and customary closing conditions.”

The Australian Competition and Consumer Commission (ACCC) has an ongoing review of the merger, which commenced on May 11. August 20 is set as the provisional date for the announcement of the ACCC’s findings.

When the acquisition is complete, expected by the first half of 2021, Alstom will be the second-largest rail-equipment firm, behind Chinese manufacturer CRRC. The combined Alstom and Bombardier Transportation company would have revenues of €15.5 billion ($25.58bn) and would create the European rail champion, which was proposed when Alstom attempted to merge with Siemens.

 Environment and Sustainability, Passenger Rail, Rail Supply, Research & Development, Rolling stock & Rail Vehicle Design

First hydrogen filling station to power emissions-free trains

Rail manufacturer Alstom has joined with gases and engineering company Linde to build and operate a hydrogen filling station to support hydrogen trains on the Elbe-Weser network, in the German state of Lower Saxony.

The hydrogen filling station will provide the fuel for the operation of Alstom’s Coradia iLint hydrogen-powered trains, which completed a test phase in February.

While operating passenger services, the trains were able to replace diesel-powered services, and only emit water vapour and condensation.

Completion of the filling station is expected in mid-2021 and 14 hydrogen trains will be utilising the facility by the beginning of 2022.

Once filled at the station, the trains will be able to run for up to 1,000km, meaning they only require one tank filling. The station has room for expansion to produce hydrogen on site through electrolysis and regenerative electricity.

Hydrogen is a key fuel in the decarbonisation of rail where electrification is not possible, facilities such as the filling station will enable emissions-free transport and support Germany’s goal to become carbon neutral by 2050.

“The construction of the hydrogen filling station in Bremervörde will create the basis for the series operation of our emission-free hydrogen trains in the Weser-Elbe network,” said Jörg Nikutta, managing director Germany and Austria of Alstom.

Mathias Kranz, responsible at Linde for the onsite and bulk business in Germany, said the switch to hydrogen would improve environmental outcomes.

“The introduction of hydrogen as a fuel for trains will significantly reduce the burden on the environment, as one kilogram of hydrogen replaces approximately 4.5 litres of diesel fuel.”

According to Andreas Wagner, head of local rail passenger transport and signatory of the Elbe-Weser Railways and Transport Company, the introduction of hydrogen trains has promoted interest in rail from passengers and motivated drivers.

“Our passengers were very curious about the trains and their technology from the very beginning. In addition to the very low noise level, the hydrogen train impresses with its zero emissions, especially in times of climate change. For our train drivers, the operation of iLint was a very special motivation,” he said.

 Environment and Sustainability, Passenger Rail, Rail Supply, Rolling stock & Rail Vehicle Design, Workforce, Certification & Training

KTK Australia denies forced labour allegations

Allegations that slave labour was used in the production of components used in a number of Australian rollingstock fleets have been strongly denied by KTK Australia.

In a statement, KTK Australia said that such allegations “are based on no official documents, interviews or testimony”.

The allegations stem from a US Department of Commerce blacklist that included KTK Australia’s parent company, KTK Group. The US Department of Commerce said that KTK Group was implicated in human rights violations such as the forced labour of Muslim minority groups from Xinjiang Uyghur Autonomous Region.

KTK Australia disputed the basis for these implications.

“KTK Group has never employed workers who are members of the Uyghur ethnic minority,” said the KTK Australia statement.

KTK Australia’s website lists its components as in use on a number of Australian rollingstock fleets. These include NSW’s New Intercity Fleet (NIF), and Sydney Metro, the X’Trapolis and High Capacity Metro Trains (HCMT) in Victoria, and Queensland’s Next Generation Rollingstock (NGR).

Bombardier, which manufactures the NGR fleet, said that it was closely looking into the allegations.

“Bombardier Transportation is aware of the recent action by the United States Commerce Department in relation to KTK Group Co. We are actively monitoring this new dynamic – impacting the transportation industry – and any effect this could have on our own supply chain, projects and products,” said a Bombardier Transportation spokesman.

In Bombardier’s Supplier Code of Conduct, which all suppliers must agree to, forced labour, modern slavery, and human trafficking are explicitly prohibited. The code outlines:

Bombardier will not engage in the use of forced or enslaved labour or human trafficking, nor will it tolerate their use at any level in its supply chains. Suppliers must not demand any work or service from any person under the menace of any penalty. For example, Suppliers’ employees must be free to leave work or terminate their employment with reasonable notice, and they are not required to surrender any government issued identification, passports or work permits as a condition of employment.

Alstom, which manufactures the Sydney Metro and X’Trapolis fleet, also prohibits forced labour in its supply chain. Its Ethics and Sustainable Development Charter requires that suppliers commit to the “elimination of all forms of illegal, forced or compulsory labour”.

A Victorian Department of Transport spokesperson said that it was assured that there is no evidence of forced labour in the supply chains of its rollingstock.

“We have asked our manufacturers to take additional steps to ensure the integrity of their supply chains, and we continue to monitor the situation and will consider further steps based on the outcomes of ongoing supply chain investigations.”

A Transport for NSW spokesperson highlighted that suppliers must comply with Australian laws covering subcontracting and reporting requirements.

“Transport for NSW also has rights to access and audit the supplier’s records and the materials, goods, workmanship or work methodology employed at any place where the supplier’s activities are being carried out.”

The NSW spokesperson said that the components in use on the NIF were from the French arm of KTK.

In a report published by the Australian Strategic Policy Institute (ASPI), which is in part funded by the US State Department, KTK Group is named as one company that was involved in the transfer of Uyghurs out of Xinjiang. The report cites online news articles.

KTK Australia noted that the cited articles refer to non-Uyghur workers from Xinjiang constructing a playground in a city in Jiangsu province.

“KTK Group confirms that in 2018-19 it did employ a small number of workers from Xinjiang, who were not ethnically Uyghurs, all were properly employed and paid the same wage as all KTK other workers in the same positions,” the KTK Australia statement read.

The US Department of Commerce blacklist prohibits US companies from working with listed companies. KTK Group has no investments in the US and said the decision would not have a material impact on the business.

“KTK Group is a transparent company and we welcome any international customers to inspect our facilities and to audit our labour practices.”

hydrogen-powered
 Environment and Sustainability, Passenger Rail, Research & Development, Rolling stock & Rail Vehicle Design

Partnership to produce hydrogen-powered trains in UK

UK rollingstock owner Eversholt Rail will join forces with Alstom to produce a new class of hydrogen-powered trains to decarbonise the UK rail sector.

With a combined investment of £1 million ($1.78m), the new trains nicknamed Breeze will be re-engineered versions of Eversholt’s Class 321 fleet, which have been in use on the UK rail network since 1988.

The hydrogen powered trains will be built at Alstom’s Widnes Transport Technology Centre near Liverpool and are expected to create 200 jobs in the North West region of England. Alstom will use its hydrogen train technology that has been in service in the Coradia iLint trains.

Nick Crossfield, managing director of Alstom UK and Ireland, said that the new trains would support the UK government’s initiatives in hydrogen power.

“It’s time to jump-start the UK hydrogen revolution. With the government looking to invest in green technologies, Alstom and Eversholt Rail have deepened our already extensive commitment to this job-creating technology with a further million-pound investment.”

The partnership expects the trains to fill the gap in zero-emission services where electrification of lines is not possible. This would be particularly the case on regional rail services.

Alstom’s hydrogen-powered Coradia iLint trains have run trial passenger services in Germany and the Netherlands, and Alstom recently signed a deal to prepare for the introduction of hydrogen trains in Italy.

CEO of Eversholt Rail Mary Kenny said the hydrogen trains extended a commitment to innovation.

“Eversholt Rail has a proud record of innovation in key rolling stock technologies and this further investment in the Breeze programme demonstrates our commitment to providing timely, cost-effective solutions to the identified need for hydrogen trains to support the decarbonisation of the UK railway.”

The UK government aims to phase out diesel-only trains by 2040 and Alstom and Eversholt rail expect to have the first Breeze trains in service by 2024.