HS2

14.08.18

Talgo launches legal bid against HS2 ‘botched’ £2.8bn train procurement

HS2 Ltd is facing a fresh legal challenge from Spanish manufacturer Talgo over what it argues has been “botched” £2.8bn rolling stock procurement process.

The Madrid-based company was shortlisted as one of the five suppliers to build trains for the new high-speed line as part of a major contract. However, the firm has decided to sue HS2 after Spanish rival CAF launched its own legal challenge and was then added to the shortlist late in the game.

In a complaint filed to the High Court, Talgo claimed that HS2 “failed to exercise rational judgement” and factored in “irrelevant considerations” by allowing CAF back into the tender race.

Talgo wants HS2 to dismiss CAF from the competition or restart the entire procurement process.  

CAF was initially missed off the tender bidding list in November but was added to it in June. It now joins the race alongside Bombardier and Hitachi’s joint bid, German firm Siemens, and France’s Alstom on the shortlist in their bid to design, build, and deliver their fleet of tailored HS2 trains.

A previous legal challenge from CAF claimed that HS2 made errors during the procurement process that breached EU and UK regulations. Those claims were valued at over £10m— with the firm calling for compensation to cover bid costs and damages.

CAF also argued that by leaving it out of the bidding process, HS2’s actions put the company at risk of financial loss and reputation damage, therefore requiring sufficient compensation.

Talgo was unveiled as a bidder for the lucrative £2.75bn HS2 contracts in November 2017. The winner of the contacts will be required to deliver the modern rolling stock that will boost the UK’s network capacity.

HS2 has declined to comment on the case, with a spokesperson saying only that to ensure the best trains are procured, it is vital that a robust competition takes place.

Enjoying RTM? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Image credit: Talgo

Comments

There are no comments. Why not be the first?

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

ORR report: ‘No one took charge’ in May timetable chaos, ‘everyone made mistakes’

20/09/2018ORR report: ‘No one took charge’ in May timetable chaos, ‘everyone made mistakes’

A scathing report into the May timetable chaos has blasted transport secretary Chris Grayling, Network Rail, and the DfT’s handling of the ... more >
Government rejects claims of transport spending ‘regional imbalance’

20/09/2018Government rejects claims of transport spending ‘regional imbalance’

The Transport Committee has urged the DfT to “be more specific about the economic rebalancing effects it intends to achieve&rdquo... more >
DfT quietly pulls the plug on CrossCountry franchise competition

20/09/2018DfT quietly pulls the plug on CrossCountry franchise competition

The government has decided to pull the plug on the CrossCountry franchise competition as a result of its rail review announcement today. Bec... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

The East Coast franchise report tells us what we already knew: it was a bid set up to fail

18/09/2018The East Coast franchise report tells us what we already knew: it was a bid set up to fail

RTM's Jack Donnelly assesses what the Transport Committee's latest report on the VTEC franchise means for the industry as a whole “Even now, there is no concrete plan, nor timescales, for the interim operator of this franchise. From our inquiry, we cannot be sure, and cannot reassure passengers or public, that the arrangements ... more >
read more blog posts from 'the sleeper' >

comment

Northern Powerhouse Rail: The need for change

18/09/2018Northern Powerhouse Rail: The need for change

Northern Powerhouse Rail (NPR) will be transformational for the north – it will change the way people live, work, and play. It will rebalan... more >
Innovation through people and technology

18/09/2018Innovation through people and technology

Ian Prosser, HM chief inspector of railways and director of railway safety at the ORR, picks out the key industry challenges to focus on based on... more >
Why we all must mind the gap

18/09/2018Why we all must mind the gap

Clair Mowbray, chief executive of the National College for High Speed Rail (NCHSR), explains how we can all ensure the UK’s next generation... more >
3D printing: from virtual to real

11/09/20183D printing: from virtual to real

Like so many other technological advancements, 3D printing has moved from being the stuff of science fiction, through niche industrial applicatio... more >

rail industry focus

View all News

interviews

Going global: an interview with Network Rail’s Leevan Finney

29/08/2018Going global: an interview with Network Rail’s Leevan Finney

RTM’s Jack Donnelly sat down with one of the leading minds behind Network Rail’s most advanced and innovative rail maintenance techno... more >