TALGO awarded the High-Speed Mecca-Medina mega-contract
The Spanish consortium led by Talgo, Renfe, Adif and OHL has been awarded the High-Speed Mecca-Medina mega-contract
- The project is based on Talgo technology and further strengthen the global leadership position of the company and the Spanish high speed model
Madrid – October 26, 2011 – The contract awarded by the Saudi Railways Organization to the Spanish consortium is valued at €6.5 billion. Talgo’s share of the contract is €1.6 billion, which could be increase to €2.4 billion should the client decide to exercise an option to acquire an additional 23 trains.
The project, awarded to a consortium involving another eleven Spanish companies and two Saudi companies, is based on Talgo’s technology and further strengthens the global leadership position of the company and the Spanish high speed model
The award is result of the internationalization process accelerated by Talgo in 2007. The process has already delivered major contracts in Kazakhstan, Uzbekistan, the USA and Russia. In 2010, 83% of the new contracts awarded to Talgo were from international clients.
According to Carlos Palacio Oriol, President of Talgo, “the award of this major contract is a milestone for the Spanish rail industry and technology and Talgo’s internationalization strategy, as well as serving as a platform for future international tendering processes of high speed projects in other parts of the world”. At present, Talgo is commercially active in 25 countries worldwide
The train offered
The train offered is the high-speed Talgo 350 ‘El Pato’ (Duck shape). It is the leading high speed train in Spain, with a 50% market share in the high-speed segment and runs on the following routes: Madrid-Málaga, Madrid-Valencia, Madrid-Valladolid Barcelona-Málaga and Barcelona-Sevilla.
The Spanish Consortium has been awarded the construction of 35 trains and 12 years of maintenance services with a future purchase option of 23 additional trains.
Trains will be constructed at various Talgo plants in Spain.
The HHR (Haramain High Speed Railway) is a 450 km high speed train corridor connecting the cities of Medina and Mecca. This new track is intended for pilgrims to travel between the two Muslim holy cities. The corridor will have the capacity to transport up to 166,000 passengers per day.
The Spanish consortium will construct the rolling stock and develop the "super structure" - track, catenary and signaling elements - in addition to other structures - building of an operational control plant, high and low voltage supply, etc. The consortium will also operate the trains and provide maintenance for the equipment installed.
The tender process began on October 1, 2006 and was divided into two phases: phase one involved the basic construction and civil works including the platforms and several of the stations. The phase two contract awarded to the Spanish consortium involves the construction, operation and maintenance of the rolling stock and super-structure. In the second phase, the Spanish consortium competed against four other pre-qualified consortia: German, Korean, Chinese and French. The finalists were the Spanish and the French consortia. The Spanish consortium’s compelling price proposal in combination with a technical bid, based on Talgo’s technology, that was rated of equal quality tipped the balance in favor of the Spanish consortium.
The Spanish consortium, composed of Talgo and eleven other Spanish companies (RENFE, Adif, OHL, Copasa, Dimetronic, Inabensa, Cobra, Indra, Imathia, Ineco and Consultrans) together with two local partners (Alshoula and Al Rosan), will operate the high-speed trains on this route for twelve years from the start of passenger service.
This contract is the first export of the Spanish high speed model in a joint venture between public and private companies. For Spain it is an export project valued at around €6.5 billion, which will contribute to Spanish high-tech exports, job creation and increase Spanish industrial activity.
For further information:
Ana de Nicolás
Tel: +34 609182104