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Alstom sues to block Eurostar purchase of Siemens trains

French engineering giant Alstom is suing to block cross-channel rail company Eurostar from buying trains made by its German competitor Siemens, an Alstom spokeswoman said Wednesday.

Alstom sues to block Eurostar purchase of Siemens trains
Photo: DPA

“Alstom lodged a complaint on Tuesday at the High Court in London to demand that the call for tender by Eurostar be suspended,” the spokeswoman said.

Alstom, the pride of French engineering and currently the only company making trains to run in the Channel tunnel, says the high-speed trains made by Siemens do not meet safety regulations for the route.

The French company faces increasing competition as railways in the European Union are open up to competition under EU rules.

“This call for tender cannot be concluded since the train specifications set by Eurostar do not correspond to the regulations demanded for a train going in the Channel Tunnel,” the spokeswoman said.

Eurostar, the cross-Channel rail monopoly jointly owned by France, Britain and Belgium, has ordered 10 of Siemens’s new-generation high-speed Velaro trains.

France’s transport minister Dominique Bussereau said last week: “Equipment other than that currently made by Alstom cannot go in the tunnel, so Eurostar’s decision is null and void.”

Alstom complains that Eurostar’s call for tender anticipated a future change in safety regulations which allowed Siemens to bid.

Siemens replied Wednesday to the legal challenge by saying it was confident of retaining the deal.

“Competent courts will rule if the procedure and attribution of the contract to Siemens was fair,” a statement said. “We are confident that is the case.”

“The complaint was not directed against Siemens,” it added. “Siemens made an offer as part of a transparent process that conforms to European law, and which was deemed best by the client.”

Both Siemens and the German railway Deutsche Bahn are counting on deal to advance cross-border rail competition in Europe.

AFP/ka

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‘We’ll continue our protests’: Environmental activists confront Siemens bosses in Munich

Siemens chief executive Joe Kaeser faced environmental protests inside and outside the group's annual shareholder meeting on Wednesday.

'We'll continue our protests': Environmental activists confront Siemens bosses in Munich
Demonstrators in Munich on Wednesday. Photo: DPA

Outraged by the group's sticking to a contract to supply rail equipment to a massive Australian coal mining project, demonstrators were rallying outside the Munich Olympiahalle ahead of the 10:00am kickoff.

A group of around 100 were on the scene from early in the morning, some forming a human chain.

Late Tuesday, Greenpeace had draped a banner from the company's headquarters reading “Bush fires start here”.

“We will continue our protests for as long as Siemens doesn't back down,” said Helena Marschall, a representative of the movement, at a Tuesday press conference.

Marschall herself is slated to speak inside the venue later Wednesday, while the demonstrators plan to urge the company to “abandon coal” at a larger protest in the afternoon.

Kaeser kept activists and observers on tenterhooks for weeks as he decided whether to uphold a contract with India's Adani group related to its Carmichael mine project in Australia.

In the end, he stuck to Siemens' agreement to supply the rail signalling equipment for the massive open-cast mine, not far from the iconic natural landmark of the Great Barrier Reef.

READ ALSO: Outrage in Germany as Siemens back Aussie mine project

'Fulfil contractual obligations'

Groups like Extinction Rebellion and Fridays for Future have homed in on the shareholder meeting as an opportunity to renew the pressure on Siemens.

“What's more important: a small financial loss in the short term, or the disastrous consequences such a project will have for generations?” Marschall said.

She and other environmentalists have been invited to speak inside the cordon by a group of Siemens shareholders.

In mid-January, CEO Kaeser met leading German Fridays for Future activist Luisa Neubauer after protests across the country against Siemens.

But he later said in a statement: “We must fulfil our contractual obligations” relating to the 18-million-euro ($22 million) deal.

Protesters at the meeting. Photo: DPA

“Only being a credible partner whose word counts also ensures that we can remain an effective partner for a greener future,” Kaeser insisted.

Nevertheless, the company plans to create a “Sustainability Committee” with powers to block environmentally questionable projects.

Siemens says it backs the 2015 Paris Agreement and aims to become carbon-neutral by 2030.

27 mn tonnes of coal

The open-cut Carmichael mine is set to become operational next year and produce up to 27 million tonnes of coal annually.

Adani spent years trying to secure private finance for the coal mine before announcing in 2018 it was self-financing a trimmed-down, $2 billion version of theĀ  project.

Supporters say the mine will bring hundreds of much-needed jobs to rural Queensland in eastern Australia.

But conservationists say the project threatens local vulnerable species and notes that the coal will have to be shipped from a port near the already damaged Great Barrier Reef.

Much of the coal from the mine will be burned in India, a country with some of the world's highest levels of air pollution.

By Ralf Isermann with Tom Barfield in Frankfurt

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