Bruges’ Alstom Appeals After Losing NMBS €3.4 Billion Train Contract

Bruges (Eurotoday) – Belgium awarded a €3.4 billion train contract to Spanish company CAF, rejecting Alstom’s lower offer by €107 million. Alstom and Siemens are now challenging this decision in court, with a hearing set for April 8, 2025.

Belgium is purchasing new trains and has chosen the Spanish company CAF for the project, a decision costing €3.4 billion. However, French manufacturer Alstom proposed a bid that was €107 million cheaper.

Despite the lower cost, Belgian authorities selected CAF, citing a slightly better train design. This has sparked controversy, with critics arguing that the government should not have ignored such a significant price difference.

Some are calling for a review to determine whether the government made an error in awarding the contract to CAF instead of Alstom. There are concerns about how these decisions are made and whether the process was conducted fairly. Since taxpayer money is funding this purchase, critics argue that the government blank”>should have selected the more cost-efficient option.

Did NMBS disregard Belgian jobs in €3.4B train agreement?

Another source of frustration is the potential impact on jobs in Belgium. Alstom has a significant workforce in the country, and losing this contract could result in job losses. Many believe that public funds should support Belgian businesses and workers.

The government has stated that European regulations prevent them from favoring local companies. However, some politicians are urging a reassessment of the decision, arguing that it highlights the difficulties of balancing cost, quality, and economic impact when making such large financial commitments.

Officials noted that both Alstom and Siemens believe the government did not follow proper procedures. They have taken legal action, requesting a court review. If the court finds that the decision was flawed, the process of acquiring new trains could face years of delays, which would be problematic for the country’s transport system. The case is scheduled for a hearing on April 8, 2025.

Until a final decision is made by the Council of State, NMBS cannot yet start discussions with CAF,

the court stated.

If Alstom and Siemens lose the case, they may have to seek projects in other countries. Some argue that job retention should have been a key factor in the government’s decision. This situation has reignited discussions about how European regulations on public contracts impact employment across different nations.

With the orders that have now been confirmed, we have job security until the middle of next year. After that, hundreds of jobs are at risk,

says Freddy Bakker of the joint trade union front.