SHARE
COPY LINK

BUSINESS

British firm signs €1.6bn German train deal

British transport company National Express will sign a contract on Wednesday to run two regional rail services in North Rhine Westphalia, Germany's most populous state in a deal worth €1.6 billion.

British firm signs €1.6bn German train deal
Photo: DPA

The new services between Krefeld, Cologne, Bonn, Wuppertal and Münster will start in December 2015 and run for 15 years.

The contract represents part of a larger programme of liberalizing the EU’s rail and transport networks. It is expected that around 35 contracts of a similar volume are likely to follow in the next five years.

It will be signed by Tobias Richter, managing director of National Express in Germany, and three representatives from regional German rail services, in the western town of Wuppertal. British Ambassador Simon McDonald will also attend.

Ambassador McDonald called the contract a “vote of confidence from our German partners and a testimony to the strength of British transport companies”. “This is a proud day for British business,” he said.

National Express’ move into German rail transport leads on from its success in the UK’s newly- coach market.

While several European companies have negotiated transport contracts in the UK, British transport providers have thus far had trouble breaking into the continental market.

Richter said his company was “delighted” to have been awarded the contracts, saying that as the “operator of the UK’s best performing rail franchise”, National Express would focus on delivering North Rhine Westphalia’s 18 million people “services of the highest quality”.

Figures released in June this year show National Express trains in the UK recording a yearly average of 97.3 percent of trains arriving on time, compared to a national average of 91 percent.

Richter will be aiming to provide the same punctual service to efficiency-conscious German customers. “We cannot wait to get started”, he said.

But National Express has also seen its share of controversy. In 2009, the firm had its franchise on the UK East Coast main line rail services terminated three years early because it could no longer afford to operate the services.

National Express had run the franchise, which ran services between London and the east of England since 2007.

-Deutsche Bahn announced on Tuesday that passengers at 105 train stations will now be able to get free wi-fi for 30 minutes in a deal with Deutsche Telekom. Customers will be logged out after 30 minutes and will then have the option of paying.

Alex Evans/ The Local

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

READ ALSO: 

The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

SHOW COMMENTS