A European railway giant had the “contract of the century” in hand, but a French company intervened

A European railway giant had the “contract of the century” in hand, but a French company intervened

The Spanish train manufacturer was supposed to receive a billion-dollar order. However, a French company is suing against the awarding. A German company also feels wronged. Regional politicians and unions demand that the order remains in the country where the vehicles are ultimately supposed to operate.

What kind of contract is this? The Spanish train manufacturer CAF was originally supposed to receive a major order from the Belgian railway company SNCB/NMBS for the delivery of new trains. The framework agreement potentially includes trains worth up to 3.4 billion euros.

Industry experts and newspapers dubbed the offer “contract of the century” due to its large scope. The contract is essential for the modernization of the Belgian train fleet and is considered one of the largest railway contracts in Europe in recent years.

However, the French competitor Alstom has filed an objection against the awarding. This could mean that the Spanish manufacturer might still lose the major order.

French and German companies file objections against the awarding process

Who has filed objections? Both Alstom (France) and Siemens (Germany), which lost in the bidding process, have filed objections against the SNCB’s decision and are suing in court.

The French company Alstom argued that its offer was 107 million euros cheaper, and they could also integrate Belgian workers at their factories in Bruges and Charleroi. This also brought unions into the picture, as they feared that if Alstom did not receive the offer, several hundred jobs in Belgium would be directly threatened (via vrt.be). The argument from analysts:

If Alstom receives the order, it would secure the workload of the Alstom factory in Bruges (Belgium) for several more years and potentially avoid a restructuring or even the closure of the plant. This was reported by the English-language magazine Reuters.com.

SNCB confirms Spanish company again as main contender, Alstom plans to sue again

What happens next? On April 17, 2025, the Belgian State Council, the highest administrative court in Belgium, temporarily stopped the award of the contract to the Spanish manufacturer CAF. The SNCB was to re-examine the order.

After further examination, the SNCB confirmed again in August 2025 that CAF is the preferred bidder, but the awarding process remains accompanied by legal disputes. The next hearing on this matter is scheduled for August 29, 2025, with the outcome expected a few weeks later.

Unions and some politicians still criticize that the order could not go to a provider with manufacturing in Belgium. This was reported by the magazine Belganewsagency.eu.

The railway has long been considered non-competitive against the airplane. However, one route is showing that the train can indeed keep pace and poses tough competition for air travel. Such strong competition that more and more people are switching from planes to trains: In one country, the train is currently outpacing the airplane: Flying no longer pays off on a route of 1,300 km

Source(s): xataka.com
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