Train delay puts Newton Aycliffe jobs in jeopardy

Nov 26 2010 by William Green, The Journal

TRAIN builder Hitachi yesterday hinted it could walk away from plans to create thousands of jobs in the North East amid Government delays to a key contract.

The Japanese company wants to build a state-of-the-art factory in Newton Aycliffe, County Durham, but that depends on Ministers approving a multi-billion fleet of new trains to run on the East Coast Main Line.

Transport Secretary Philip Hammond yesterday announced he would not make a decision on the Intercity Express Programme (IEP) until January and could yet dump Hitachi’s proposals.

Some 800 jobs would be directly created at the plant, with thousands more in the supply chain along with 200 in the factory’s construction.

Passengers also face losing out if Mr Hammond opts for different proposals to replace ageing High Speed trains running on the East Coast Main Line. A lengthy new tender process would have to be launched.

Hitachi welcomed the Government’s plans to invest in the railways and replace the High Speed trains – and continued to see the UK as one of its important European markets.

But a company spokesman said: “We are disappointed that there is yet no decision on our bid for the IEP, and therefore on our plans to bring jobs to the UK.

“We will be continuing our talks with the Department for Transport and will consider our position in the light of these.” The warning come after the Hitachi-led Agility Trains consortium was selected as the “preferred bidder” to provide new inter-city trains by the previous Government, only to find it ordered a review into the programme.

Ministers will now choose between Hitachi’s revised proposals for “bi-mode” trains featuring electric and diesel power systems or new electric trains pulled by diesel locomotives where required.

The two options are said to be “very close”, although there is concern Hitachi’s revised bid could spark challenges by rival companies complaining strict procurement rules have not been followed.

Sedgefield MP Phil Wilson, whose constituency includes Newton Aycliffe, said: “It is frustrating news. It was another non-announcement that we had.

“It could be worse, it could have been off the table all together, but it isn’t. We are still in the fight.”