46 January 2016 | Railway Gazette International IN FOCUS Industry Review

January 6: VTG completes acquisition of Cards redealt Swiss leasing company AAE. in global industry reshaping January 7: The Greenbrier Companies announce an agreement to acquire a 19∙5% stake in Brazilian wagon builder Amsted-Maxion Hortolândia for US$15m.

January 8: Knorr-Bremse announces the acquisition of Selectron Systems of under an agreement signed on December 19 2014. Photo: Tony Miles Photo: Tony Hitachi Rail Europe’s assembly plant at Newton Aycliffe was officially inaugurated on September 3. January 20: UK train leasing company The world’s railway supply industry looks fundamentally different after a year marked Eversholt by changes to the established order. Murray Hughes investigates. Rail Group announces agreement for its purchase by hange on a huge scale has technology to be used on the core of the railway market have had mixed success CK Investments, swept across the world’s cross-London Thameslink route. to date, but the seeds for deeper in- which is jointly railway industry in the last These moves have inevitably caused volvement are already being sown with owned by 12 months. As emerging alarm among established suppliers, and research partnerships or joint ventures Cheung Kong markets develop and existing markets European association Unife has re- established with universities in Britain Infrastructure mature, suppliers have been bought and peatedly articulated its concerns about and . And the rollout on July Holdings C Ltd and sold, reshaped and amalgamated. the lack of reciprocal access to the Japa- 7 last year of the first passenger vehicle Cheung Kong Perhaps the biggest shift has oc- nese market for its members (RG 8.15 built in China for a European operator (Holdings) Ltd. curred in Europe, where the domina- p24). On the other hand, JR East con- was yet another pointer to the ambi- tion of ‘systems integrators’ has been tinues to court European suppliers, with tions of Chinese suppliers. January 20: challenged by the arrival of Hitachi plans for a multi-city ‘roadshow’. Agreements for Chinese builders to Equistone Rail. The newcomer is becoming firmly Potentially of greater concern to Eu- set up rolling stock production plants in Partners Europe established thanks to the opening of a rope’s railway supply industry are devel- Argentina were signed in 2013, but last and Bpifrance train assembly plant in the UK and the opments in China, where CNR and CSR year saw CRRC sign up to construct announce participation in acquisition of AnsaldoBreda and Fin- merged in June last year to form CRRC, its first train assembly facility in North a €10m capital meccanica’s 40% stake in Ansaldo STS. a powerful conglomerate able to draw on America. This followed the signature of increase for AnsaldoBreda’s involvement in the huge resources. The slowdown in China’s a contract originally awarded to a CNR the holding 1000 high speed train con- economy may sooner or later have an im- joint venture to supply 284 metro cars company tract for means that Hitachi is pact on the domestic market for railway for Boston’s Orange and Red lines — that controls seat supplier already co-operating at the production equipment, which suggests that CRRC the first entry of a Chinese train builder Compin, level with Bombardier Transportation. will be keener than ever to tackle markets into the North American market. As allowing it Nor is Hitachi’s venture into Europe in the rest of the world. It may also make the deal requires 60% US domestic to purchase simply in the field of rolling stock. In access to China’s domestic rail sector content, the supplier agreed to build a Spanish seat July the company signed a contract with even harder for European suppliers. US$95m final assembly plant and test specialist Fainsa. Network Rail for its traffic management China’s forays into the European track at the former Westinghouse site

January 20: February 4: February 24: March 11: March 15: April 2: KB Holding Wabtec Corp acquires Hitachi and Finmeccanica Swiss company Alpiq Stadler Rail and Dunakeszi Hyundai Rotem lays the makes an offer Rail Road Controls, a announce an agreement for announces the acquisition Jármüjavitó sign a memorandum of foundation stone for a to acquire the signalling construction the Japanese group to buy of Italian rail electrification understanding to jointly produce rolling stock assembly entire stock of services subsidiary of AnsaldoBreda and Finmeccanica’s business Balfour Beatty rail vehicles for the Hungarian plant in Araraquara, Vossloh AG. RCL Services Group. 40% stake in Ansaldo STS. Rail SpA. market. . Railway Gazette International | January 2016 47 Industry Review IN FOCUS

July 27: July 27: August 4: August 18: September 3: Wabtec Corp Hitachi Rail Europe signs Škoda Transportation Group Arcus European Infrastructure Fund Hitachi Rail announces contract for Thameslink announces the acquisition of a sells its stake in the UK train leasing opens its UK plans to acquire traffic management controlling stake in Finnish rolling company Angel Trains to Australian train assembly Faiveley system with Network stock builder TransTech from pension investor AMP Capital Investors factory at SA. Rail in the UK. investment company Pritech Oy. and Canada’s PSP Investments. Newton Aycliffe.

July 23: July 17: July 9: July 7: July 6: Slovakian rolling stock builder Vossloh Indian supplier Titagarh CRRC rolls out first CRRC takes a Tatravagónka takes a 26% stake in launches Wagons completes the passenger train for a minority state in a US Jupiter Group’s subsidiary Jupiter construction of an purchase of Italian rolling European customer, joint venture to build Wagons and castings business assembly plant in stock builder Firema Makedonshi Zeleznici freight wagons in Jupiter Alloys & Steel India. Kiel. Trasporti SpA. Transport in Macedonia. North Carolina.

July 1: in Springfield; a groundbreaking event of technical support and spares for 18 than 1 400 locomotives. Rival builder Greenbrier was held in September. years. EMD, now part of Caterpillar subsidi- Europe Wagony In the same month a consortium of On November 30 2015 ary Progress Rail, hopes to have its first Świdnica and Chinese companies announced that they signed a contract to build a factory and series-built Tier 4-compliant locomo- PKP Cargo sign a letter and project promoter XpressWest had supply 800 twin-unit electric locomo- tives ready for delivery in the second of intent agreed to set up a joint venture to de- tives for Indian Railways under a joint half of this year. for the joint velop, finance and build a 370 km high venture initiative which includes main- production speed railway between Los Angeles and tenance. It has also won an order to pro- Bombardier refinances of wagons in Las Vegas. Whether or not this project vide electrification, signalling and tele- Following a period when problems . comes to fruition, the agreement was coms equipment for part of IR’s eastern with its aircraft business led to a loss of further evidence of Chinese intentions. Dedicated Freight Corridor. US$4∙6bn in the third quarter of 2015, June 17: Just one day earlier GE Transporta- Canadian-owned Bombardier moved Wabtec Corp Alstom-GE deal tion was also rewarded with a deal from announces to strengthen its financial stability on acquisition of One of the most significant changes IR for 1 000 diesel locomotives, again November 19, announcing an agree- Metalocoucho, in 2015 was the transformation of involving construction of a ment for pension and insurance fund a supplier of Alstom into a business focused entirely assembly plant under a PPP venture. investor Caisse de Dépôt et Placement rubber- on the railway sector. This followed the These long-awaited landmark contracts du Québec to invest US$1∙5bn to take components sale of the group’s energy activities to confirm India’s resurgence as a strong a 30% stake in a new holding company with sites in , China , a deal concluded on market for railway equipment as the for Bombardier Transportation. and India. November 2, which was coincidentally country moves to update its congested Shortly afterwards, in early Decem- the same day that Hitachi closed its network to support a booming economy. ber, French Minister for the Economy June 10: transaction with Finmeccanica. Elsewhere, Alstom has its eyes on ex- Emmanuel Macron mooted the possi- Stadler In terms of market volume, Alstom pansion in the UK where it is planning bility during an appearance before the announces plan has secured a role in some of the largest a ‘purpose-built transport and technol- Senate of an ‘arrangement’ between to build an rolling stock orders ever placed. These ogy facility’ at Widnes. Bombardier Transportation and Al- assembly plant include a R51bn contract for 3 600 For its part, GE has made much of stom. An earlier approach by Beijing in the USA after winning electric multiple-unit cars signed by the running in the US domestic mar- Infrastructure Investment to acquire its fifth Passenger Rail Agency of South Africa ket for diesel traction complying with between 60% and 100% of Bombardier contract from and the Alstom-led Gibela joint ven- Tier 4 emissions legislation (RG 12.15 Transportation had been rejected in a US operator; ture in October 2013, plus the provision p28), having booked orders for more September. Stadler US Inc The appointment on December 9 of was established in 2011. Chief Operating Officer Laurent Trog- er as President of Bombardier Trans- portation to succeed Lutz Bertling June 1: CRRC Corp may herald further moves to improve is officially performance. Bombardier Inc President launched, & Chief Executive Officer Alain Bel- completing the lemare, said Troger ‘has continuously merger of CNR been one of our top executives, driving Corp and CSR Corp to form superior project execution and perfor- the ‘largest mance across the business’. The com- rolling stock pany added that Troger’s priority would supplier in the world’.

On July 7 CRRC rolled out its first train for a European customer: MTZ in Macedonia. May 28: Alstom acquires Balfour Beatty’s 50% stake in April 17: April 2: April 7: April 17: May 7: the Signalling Ricardo Hyundai Rotem lays the The European Commission approves the Ricardo Shares in Spanish Solutions Ltd announces an foundation stone for a acquisition of UK rolling stock leasing company announces an train builder joint venture, agreement rolling stock assembly Porterbrook by Allianz of Germany, Alberta agreement to SA begin trading on giving it sole to acquire plant in Araraquara, Investment Management Corp of Canada and acquire Lloyd’s the Madrid stock ownership of Lloyd’s Brazil. Utilities Trust of Australia. Register Rail. exchange. SSL. Register Rail. 48 January 2016 | Railway Gazette International IN FOCUS Industry Review

September 3: September 18: September 24: October 6: October 12: CRRC breaks China Railway International USA Co is set Bombardier awards Wabtec Corp signs Wabtec Corp ground for a US up by a consortium of Chinese companies a contract to build a share purchase announces the rolling stock plant to develop and build a high speed line from additional manufacturing agreement to acquire acquisition of lineside in Springfield, Los Angeles to Las Vegas in conjunction with facilities at its Wrocław a 51% stake in sensor manufacturer Massachusetts. project promoter XpressWest. plant in Poland. Faiveley Transport SA. Track IQ.

November 2: be ‘to deliver on our commitments to metro and tram business saw several Siemens will deliver the first of 80 broad Finmeccanica and Hitachi customers, while increasing profitability orders signed during the year, among gauge Vectrons to Finland during 2016. close the at Transportation’. them a contract for 162 more cars for Operators in the USA are also or- transaction The group continues to win busi- Delhi Metro. dering Siemens motive power, with for Hitachi ness in China, with Bombardier Sifang Septa in Philadelphia contracting for to acquire (Qingdao) Transportation logging an Siemens on target 13 ACS-64 electric locos in November AnsaldoBreda and order for 15 more eight-car CRH380D Siemens reports that it has met its and a further 34 Charger diesel-electric Finmeccanica’s trainsets on September 2. Its Traxx lo- forecasts for the 2015 financial year that locomotives being ordered by the states 40% stake in comotive platform remains popular, the ended on September 30, with the Mo- of California, Illinois and Maryland in Ansaldo STS, latest addition to the family being the bility division taking orders worth more the same month. launching an dual-system F120MS broad gauge lo- than €10bn. From a turnover of €7·5bn, Significant signalling and train con- offer to acquire € the rest of comotive for the Russian market — a the business achieved a profit of 171m. trol contracts were secured in the USA the signalling prototype was rolled out by the First The company is working on several and Algeria; Siemens was also part of a business. Locomotive Co joint venture between large rolling stock orders that include consortium awarded a contract in May Bombardier and a group of Russian in- the ICE4 inter-city fleet for Deutsche to electrify 550 route-km in Denmark. November 2: vestors at the newly-built Engels facto- Bahn and 1 140 Class 700 EMU cars The company announced on October Alstom ry on August 19. In August, Israel Rail- destined to form 115 trains for Thames- 20 that it would build a tram factory in announces Gebze near Istanbul at a cost of €30m, the close of its indicating that it views Turkey as a €12∙4bn sale of its energy promising market. business to Acquisitions GE as part of GE’s ‘largest- The names Stadler Rail and Wabtec ever industrial feature prominently in our timeline, acquisition’; part of Alstom’s as both companies are in acquisition proceeds are mode. Stadler’s activities in seeking new used to acquire markets such as the Asia-Pacific region GE Signalling and Spanish speaking states were influ- for €700m. enced by the strong value of the Swiss franc. The Swiss national bank’s deci- November 3: sion to decouple the franc from the euro Stadler Rail in January 2015 led to a 20% rise in the signs an agreement price of Stadler’s products. to purchase Stadler’s range will expand to en- Vossloh Rail Photo: David Lustig compass diesel-electric locomotives and Vehicles, tram-trains following an agreement Vossloh’s ways ordered 62 Traxx units for use with GE Transportation continues to dominate the announced in November to buy the locomotive and North American market, with order for more rolling stock a fleet of push-pull trains as the 25 kV than 1 400 Tier 4 diesel locomotives. Valencia-based Rail Vehicles business business based electrification programme comes on unit of Vossloh AG. Completion of the at Valencia in stream. Yet another order came in No- link services in the UK. The company deal is expected during the first quarter Spain. vember from leasing company Railpool. described a contract won in March of 2016. Meanwhile, Vossloh Locomo- Bombardier’s UK arm has received to supply 82 Desiro HC trainsets for tives expects to open a new production November 17: further orders for its Electrostar design, Rhine-Ruhr Express services as ‘a huge facility at Kiel-Suchsdorf in mid-year. Stadler Rail including a speculative order for 80 cars success’ and ‘the largest regional rail Wabtec’s position in the railway com- founds Stadler from leasing company Porterbrook. The transport order ever won by Siemens ponents market changed significantly Australia with € · an office in company’s Derby assembly plant is cur- in Germany’; this 1 7bn deal includes with an agreement in October to pur- Sydney. rently working on 66 nine-car EMUs maintenance for 32 years. chase a 51% share of Faiveley Transport, for the cross-London Crossrail project Operators continue to place orders subject to approval by various competi- which will be the first of its new Aventra for the company’s locomotive tion authorities. Described as creating November 19: platform (RG 11.15 p50). Another 45 design, with contracts booked during ‘one of the world’s largest public rail Bombardier four-car Aventra units were ordered by 2015 from leasing and service company equipment companies’, the move fol- announces agreement Transport for London in June for Lon- Mitsui Rail Capital Europe, DB Schen- lowed a string of smaller acquisitions by n for pension don Overground services. Bombardier’s ker Rail, PKP Cargo and BLS Cargo. Wabtec during the year. and insurance fund Caisse de Dépôt et December 8: December 3: November 26: Placement du Vossloh Locomotives Nomad Digital and Bombardier Alstom announces agreement to Québec to take a 30% SAS and Socofer establish a joint Transportation agree a partnership buy a 51% stake in South African stake in a new holding venture called Imateq aimed to provide passenger and fleet rolling stock refurbishment company company for Bombardier at expanding business in the management connectivity Commuter Transport & Locomotive Transportation, investing locomotive and servicing sector. technology in North America. Engineering. US$1∙5bn.