Chinese eye Metro deal
A Chinese rail giant is eyeing a £500m contract to produce a new fleet for the Tyne and Wear Metro as it aims to get a toehold in the UK market.
CRRC is one of the world’s largest manufacturers of rolling stock, employing 175,000 people and providing trains for rail operators in China, Malaysia, Argentina and the US.
The company, which recently won its first contract in the UK with an order for 71 engineering wagons for the London Underground, has a presence in the North East, having bought Wallsend-based offshore equipment manufacturer SMD last year.
Representatives of the company were in Newcastle at the end of last week and it is understood they discussed the possibility of bidding for the contract to provide new Metro trains which are hoped to come into use in 2021.
Newcastle Council leader Nick Forbes, who is chair of the Transport North East committee, has tweeted a picture of himself meeting the CRRC delegation, saying: “Good to meet Chinese business leaders from CRRC and SMD today - excellent discussion about potential future investment.”
Coun Forbes has actively courted Chinese investment to the North East, accompanying then Chancellor George Osborne on a Northern Powerhouse delegation to China in 2015.
That visit saw Mr Osborne showcasing £24bn worth of investment opportunities in the North to the Chinese, though the Metro contract was not on the list of potential infrastructure projects at that time. Last year more opportunities for investment were showcased in China, including the regeneration of the former Vaux brewery site in Sunderland.
The reliance of the UK on Chinese investors to fund infrastructure projects in Britain has caused some concern, however, and led Prime Minister Theresa May to pause the contract to build a new nuclear power station at Hinkley, Somerset, before eventually giving approval.
Nexus, which owns and runs the Metro, is finalising a £1bn bid to the Department for Transport to fund a new generation of Metros, with the current fleet now almost 40 years old.
Any bid from CRRC would have to go through normal tendering processes, with Hitachi Rail - which has a factory in Newton Aycliffe, County Durham - also likely to be interested in bidding for the work.
Early plans for the new fleet show linear seating along the side of carriages, similar to London Underground trains, which would offer more room when trains are busy.
RAIL GIANT CONSIDERS NEW FLEET CONTRACT