Eurotrain
Encyclopedia
Eurotrain was a joint venture formed by Siemens
and GEC-Alsthom (today Alstom
) to market high-speed rail technology in Asia. In 1997, it was one of two competitors to supply the core system of Taiwan High Speed Rail
(THSR), and it was awarded the status of preferred bidder by concessionaire THSRC. Eurotrain assembled a demonstration train. THSRC decided to award the contract to a rival consortium, leading to a legal battle ending in damage payments for Eurotrain in 2004.
(the main maker of the German ICE) and GEC-Alsthom
(the main maker of the French TGV
), formed in March 1996 with the aim to pool their high-speed rail technologies and market it jointly in Asia. The companies wanted to avoid a repeat of a competitive battle they had for Korea's KTX
, which resulted in a loss for Siemens and limited benefits for victorious GEC-Alsthom. GEC-Alsthom held 60% and Siemens held 40% in the joint venture. The first and only high-speed project Eurotrain was involved in was THSR.
(BOT) project, but Eurotrain was already involved at the stage of the bidding for the BOT franchise. The bids of the two rival consortia were both based on specific high-speed rail technology platforms: Taiwan High Speed Rail Consortium (THSRC) allied with Eurotrain, while the rival Chunghwa High Speed Rail Consortium (CHSRC) allied with Taiwan Shinkansen Consortium (TSC), which offered Japanese Shinkansen
technology. On 25 September 1997, THSRC (later re-named Taiwan High Speed Rail Corporation with the same acronym) was selected as preferred bidder.
Also in 1997, THSRC declared Eurotrain the preferred bidder to supply the core technology, which included the high-speed trains, track, electrification, signalling and communication.
During the final negotiations, THSRC and Eurotrain sought to convince BOHSR about the technical viability of their offer by staging a demonstration run with a hybrid train assembled specifically for this purpose (see Demonstration train).
The Eschede train disaster
on 3 June 1998 didn't reduce THSRC's chances: although BOHSR wanted detailed information from Germany about the causes of the accident, it recognised that Eurotrain's train type in the THSRC offer did not use the wheel type the break of which was the root cause of the derailment. THSRC finally signed the agreement about the BOT contract with the government on July 23, 1998.
To meet THSRC's high capacity requirements, Alstom and Siemens planned to create a hybrid train type that combines the lighter and higher capacity TGV Duplex
articulated double-deck intermediate cars, extended from 8 to 12 cars, with the more powerful powerheads of German Railways
(DB) ICE 2 high-speed trains.
In early 1998, the two companies created a demonstration train by combining cars of three existing French and German high-speed trains: ICE 2 powerheads DB 402 042-6 and 402 046-7 and the intermediate cars of TGV Duplex trainset #224.
The three components of the demonstration train were adapted separately at Siemens's DUEWAG
pant in Uerdingen
, Germany and GEC-Alsthom's plant in La Rochelle
, France, in March 1998. Adaptations included the connection on the ICE 2 powerheads to the roof-mounted high-voltage cable along the TGV trainset, the installation of electronic and optical cables for the ICE drive control electronics on the roof of the TGV trainset, the installation of a rectifier on a TGV car for the on-board electricity, and the replacement of the automatic coupler on the ICE 2 powerheads with side buffers and standard UIC coupler. Braking systems weren't adapted, only pneumatic braking was used. The ICE 2 powerheads also received a special livery to harmonise with that of the TGV Duplex set.
The train was assembled in Munich
in early April 1998, followed by static and quasi-static tests. Then, between 25 and 30 April 1998, the train conducted test runs with speeds of up to 310 km/h on the Hanover–Würzburg high-speed railway and the line from Hannover to Minden
, to measure running stability, ride comfort, pressure during tunnel crossings, and pass-by noise.
On 3 May 1998, the Eurotrain demonstration train was presented to the public in Hamburg. The next day, on 4 May 1998, the train made a presentation run from Göttingen
to Hannover with THSRC and BOHSR representatives present, achieving a maximum speed of 316 km/h.
, promised funds, too. In light of these offers, in May 1999, THSRC signalled that the selection of the core system supplier is still open, and formally relaunched a tender on 15 June 1999.
To balance the perceived financial advantages of the TSC offer, Eurotrain offered to take a 10% stake in THSRC in September 1999. (The next year, TSC, too, would sign an agreement to buy a 10% stake in THSRC.) The competitors also received public government backing for their offers. While the Japanese government supported TSC with the above mentioned promise of loans, a letter from the European Union
's Trade Commission to Taiwan's government expressed Europe-wide support for Eurotrain. A visit by France's Transport Minister was only called off in the wake of the Taiwan frigates kickback scandal, leading to rumours that Eurotrain may have links to the lobby group at the centre of the scandal. However, further ministerial visits from both France and Germany were planned before the decision came.
THSRC announced on 28 December 1999 that it would negotiate a final contract with the Taiwan Shinkansen Consortium, saying that while both trains were satisfactory, TSC had "technology, price, finance and maintenance merits". THSRC emphasized that expectations on exchange rate fluctuations played a role, but also noted that TSC offered a newer Shinkansen than they had in 1997.
It was rumoured that the decision for TSC over Eurotrain was political: according to Taiwanese media, the choice was made to pave the way for then-President Lee Teng-hui
's visit to Japan. THSRC denied the allegations. However, in a book published earlier in May 1999, Lee made a case for picking the Japanese offer, claiming that while it was more expensive, the Shinkansen was superior based on safety and political considerations.
also lobbied President Lee Teng-hui for intervention, but was rejected. The German, French, and British trade offices also questioned THSRC's chairwoman. Eurotrain lost the injunction case both on the initial filing and at the appeal in the High Court.
While Eurotrain eventually conceded the train system bid, it filed a US$800 million damage claim at the Singapore International Arbitration Centre
in February 2001. In response, THSRC contended that their decision was a commercial one, reiterating that "price, financial planning, and maintenance" were the only deciding factors. After a lengthy arbitration process, the court ruled in March 2004 that THSRC should pay a compensation for the US$32.4 million Eurotrain spent on development and US$35.7 million for unjust enrichment. THSRC agreed to pay US$65 million (US$89 million with interest) to Eurotrain in November 2004.
After a meeting on 17 December 1999, freshly installed DB CEO Hartmut Mehdorn
and SNCF CEO Louis Gallois
called on the European rail industry to create a joint high-speed train platform, to realise economies of scale. DB's spokesman argued that if it is possible for German and French companies to jointly offer Eurotrain in Taiwan, the same should be possible in Europe.
The proposal, dubbed Euro-Train by the media, was taken up as a joint project of European state railways and train producers, with Eurotrain constituents Alstom and Siemens remaining the only industry partners in the project by September 2000. The project was officially named Highspeed Train Europe (HTE), and Italy's state railway FS
was won as additional partner. However, after the evaluation of 10,000 detail questions, 500 remained in which the partners couldn't compromise, and the HTE project was abandoned in September 2009.
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
and GEC-Alsthom (today Alstom
Alstom
Alstom is a large multinational conglomerate which holds interests in the power generation and transport markets. According to the company website, in the years 2010-2011 Alstom had annual sales of over €20.9 billion, and employed more than 85,000 people in 70 countries. Alstom's headquarters are...
) to market high-speed rail technology in Asia. In 1997, it was one of two competitors to supply the core system of Taiwan High Speed Rail
Taiwan High Speed Rail
Taiwan High Speed Rail is a high-speed rail line that runs approximately along the west coast of the Republic of China from the national capital of Taipei to the southern city of Kaohsiung...
(THSR), and it was awarded the status of preferred bidder by concessionaire THSRC. Eurotrain assembled a demonstration train. THSRC decided to award the contract to a rival consortium, leading to a legal battle ending in damage payments for Eurotrain in 2004.
Origins
Eurotrain was a joint venture of SiemensSiemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
(the main maker of the German ICE) and GEC-Alsthom
Alstom
Alstom is a large multinational conglomerate which holds interests in the power generation and transport markets. According to the company website, in the years 2010-2011 Alstom had annual sales of over €20.9 billion, and employed more than 85,000 people in 70 countries. Alstom's headquarters are...
(the main maker of the French TGV
TGV
The TGV is France's high-speed rail service, currently operated by SNCF Voyages, the long-distance rail branch of SNCF, the French national rail operator....
), formed in March 1996 with the aim to pool their high-speed rail technologies and market it jointly in Asia. The companies wanted to avoid a repeat of a competitive battle they had for Korea's KTX
Korea Train Express
Korea Train eXpress is South Korea's high-speed rail system, operated by Korail. Construction began on the first section of the high-speed line from Seoul to Busan in 1992. The project was later split into two phases and combined with conventional line upgrades, adding a second route from Seoul to...
, which resulted in a loss for Siemens and limited benefits for victorious GEC-Alsthom. GEC-Alsthom held 60% and Siemens held 40% in the joint venture. The first and only high-speed project Eurotrain was involved in was THSR.
Initial success
THSR was realised as a Build-Operate-TransferBuild-Operate-Transfer
Build-own-operate-transfer or build-operate-transfer is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract...
(BOT) project, but Eurotrain was already involved at the stage of the bidding for the BOT franchise. The bids of the two rival consortia were both based on specific high-speed rail technology platforms: Taiwan High Speed Rail Consortium (THSRC) allied with Eurotrain, while the rival Chunghwa High Speed Rail Consortium (CHSRC) allied with Taiwan Shinkansen Consortium (TSC), which offered Japanese Shinkansen
Shinkansen
The , also known as THE BULLET TRAIN, is a network of high-speed railway lines in Japan operated by four Japan Railways Group companies. Starting with the Tōkaidō Shinkansen in 1964, the network has expanded to currently consist of of lines with maximum speeds of , of Mini-shinkansen with a...
technology. On 25 September 1997, THSRC (later re-named Taiwan High Speed Rail Corporation with the same acronym) was selected as preferred bidder.
Also in 1997, THSRC declared Eurotrain the preferred bidder to supply the core technology, which included the high-speed trains, track, electrification, signalling and communication.
During the final negotiations, THSRC and Eurotrain sought to convince BOHSR about the technical viability of their offer by staging a demonstration run with a hybrid train assembled specifically for this purpose (see Demonstration train).
The Eschede train disaster
Eschede train disaster
The Eschede train disaster was the world's deadliest high-speed train accident. It occurred on 3 June 1998, near the village of Eschede in the Celle district of Lower Saxony, Germany. The toll of 101 people dead and 88 injured surpassed the 1971 Dahlerau train disaster as the deadliest accident in...
on 3 June 1998 didn't reduce THSRC's chances: although BOHSR wanted detailed information from Germany about the causes of the accident, it recognised that Eurotrain's train type in the THSRC offer did not use the wheel type the break of which was the root cause of the derailment. THSRC finally signed the agreement about the BOT contract with the government on July 23, 1998.
Demonstration train
SNCF TGV Duplex
The TGV Duplex is a French high-speed train of the TGV family, operated by SNCF, the French national railway company. It is unique among TGV trains in that it features bi-level carriages. The Duplex inaugurated the third generation of TGV trainsets, and was specially designed to increase capacity...
articulated double-deck intermediate cars, extended from 8 to 12 cars, with the more powerful powerheads of German Railways
Deutsche Bahn
Deutsche Bahn AG is the German national railway company, a private joint stock company . Headquartered in Berlin, it came into existence in 1994 as the successor to the former state railways of Germany, the Deutsche Bundesbahn of West Germany and the Deutsche Reichsbahn of East Germany...
(DB) ICE 2 high-speed trains.
In early 1998, the two companies created a demonstration train by combining cars of three existing French and German high-speed trains: ICE 2 powerheads DB 402 042-6 and 402 046-7 and the intermediate cars of TGV Duplex trainset #224.
The three components of the demonstration train were adapted separately at Siemens's DUEWAG
DUEWAG
The DUEWAG AG was one of Germany's major manufacturers for rail vehicles. The business was sold in 1999 to Siemens transportation.- History :The company was founded in 1898 as Waggonfabrik Uerdingen AG in Uerdingen...
pant in Uerdingen
Uerdingen
Uerdingen is a district of the city of Krefeld, Germany, with a population of 18,507, though Uerdingen received its charter as a city as early as 1255, well before Krefeld. Uerdingen was merged with Krefeld in 1929, after which the term “Krefeld-Uerdingen” was used, until, eventually, the use of...
, Germany and GEC-Alsthom's plant in La Rochelle
La Rochelle
La Rochelle is a city in western France and a seaport on the Bay of Biscay, a part of the Atlantic Ocean. It is the capital of the Charente-Maritime department.The city is connected to the Île de Ré by a bridge completed on 19 May 1988...
, France, in March 1998. Adaptations included the connection on the ICE 2 powerheads to the roof-mounted high-voltage cable along the TGV trainset, the installation of electronic and optical cables for the ICE drive control electronics on the roof of the TGV trainset, the installation of a rectifier on a TGV car for the on-board electricity, and the replacement of the automatic coupler on the ICE 2 powerheads with side buffers and standard UIC coupler. Braking systems weren't adapted, only pneumatic braking was used. The ICE 2 powerheads also received a special livery to harmonise with that of the TGV Duplex set.
The train was assembled in Munich
Munich
Munich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat...
in early April 1998, followed by static and quasi-static tests. Then, between 25 and 30 April 1998, the train conducted test runs with speeds of up to 310 km/h on the Hanover–Würzburg high-speed railway and the line from Hannover to Minden
Minden
Minden is a town of about 83,000 inhabitants in the north-east of North Rhine-Westphalia, Germany. The town extends along both sides of the river Weser. It is the capital of the Kreis of Minden-Lübbecke, which is part of the region of Detmold. Minden is the historic political centre of the...
, to measure running stability, ride comfort, pressure during tunnel crossings, and pass-by noise.
On 3 May 1998, the Eurotrain demonstration train was presented to the public in Hamburg. The next day, on 4 May 1998, the train made a presentation run from Göttingen
Göttingen
Göttingen is a university town in Lower Saxony, Germany. It is the capital of the district of Göttingen. The Leine river runs through the town. In 2006 the population was 129,686.-General information:...
to Hannover with THSRC and BOHSR representatives present, achieving a maximum speed of 316 km/h.
Departure from the project
THSRC had difficulty raising capital for the project. In May 1999, the government of Japan promised soft loans if THSRC switched to TSC, and the head of the losing CHSRC bid, who was the top financier of the governing KuomintangKuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...
, promised funds, too. In light of these offers, in May 1999, THSRC signalled that the selection of the core system supplier is still open, and formally relaunched a tender on 15 June 1999.
To balance the perceived financial advantages of the TSC offer, Eurotrain offered to take a 10% stake in THSRC in September 1999. (The next year, TSC, too, would sign an agreement to buy a 10% stake in THSRC.) The competitors also received public government backing for their offers. While the Japanese government supported TSC with the above mentioned promise of loans, a letter from the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
's Trade Commission to Taiwan's government expressed Europe-wide support for Eurotrain. A visit by France's Transport Minister was only called off in the wake of the Taiwan frigates kickback scandal, leading to rumours that Eurotrain may have links to the lobby group at the centre of the scandal. However, further ministerial visits from both France and Germany were planned before the decision came.
THSRC announced on 28 December 1999 that it would negotiate a final contract with the Taiwan Shinkansen Consortium, saying that while both trains were satisfactory, TSC had "technology, price, finance and maintenance merits". THSRC emphasized that expectations on exchange rate fluctuations played a role, but also noted that TSC offered a newer Shinkansen than they had in 1997.
It was rumoured that the decision for TSC over Eurotrain was political: according to Taiwanese media, the choice was made to pave the way for then-President Lee Teng-hui
Lee Teng-hui
Lee Teng-hui is a politician of the Republic of China . He was the 7th, 8th, and 9th-term President of the Republic of China and Chairman of the Kuomintang from 1988 to 2000. He presided over major advancements in democratic reforms including his own re-election which marked the first direct...
's visit to Japan. THSRC denied the allegations. However, in a book published earlier in May 1999, Lee made a case for picking the Japanese offer, claiming that while it was more expensive, the Shinkansen was superior based on safety and political considerations.
Legal battle
The losing Eurotrain consortium interpreted the terms of its earlier preferred bidder status as a binding agreement that THSRC violated by starting negotiations with TSC, and filed an injunction against it. On behalf of Eurotrain, Siemens chairman Heinrich von PiererHeinrich von Pierer
Heinrich von Pierer is a German manager. From 1992 to 2005, he was CEO of Siemens AG. Subsequently, he was chairman of the supervisory board from which he resigned on 25 April 2007.Pierer studied law and economics in Erlangen and joined Siemens in 1969...
also lobbied President Lee Teng-hui for intervention, but was rejected. The German, French, and British trade offices also questioned THSRC's chairwoman. Eurotrain lost the injunction case both on the initial filing and at the appeal in the High Court.
While Eurotrain eventually conceded the train system bid, it filed a US$800 million damage claim at the Singapore International Arbitration Centre
International Centre for Settlement of Investment Disputes
The International Centre for Settlement of Investment Disputes , an institution of the World Bank Group based in Washington, D.C., was established in 1966 pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States...
in February 2001. In response, THSRC contended that their decision was a commercial one, reiterating that "price, financial planning, and maintenance" were the only deciding factors. After a lengthy arbitration process, the court ruled in March 2004 that THSRC should pay a compensation for the US$32.4 million Eurotrain spent on development and US$35.7 million for unjust enrichment. THSRC agreed to pay US$65 million (US$89 million with interest) to Eurotrain in November 2004.
Legacy
THSRC's working with Eurotrain resulted in the use of European high-speed rail technology or specialists in some fields.- THSRC adopted European specifications for superstructure, with a larger cross-sectional area and higher bridge strength than what was standard on Shinkansen lines.
- THSRC also prescribed European stability standards for railway track constructed by Japanese companies.
- THSRC planned for bi-directional operation on the two tracks as common in Europe, in contrast with strictly uni-directional tracks in Japan, forcing TSC to develop a new automatic train control (ATC) system.
- Also for bi-directional operation, a German manufacturer supplied high-speed swing-nose switches on ballastless slab track.
- The supplier of the Environmental Control System, which monitors and controls devices and external factors and connects to the communication system, used Siemens equipment. In July 2010 , after failing to solve a persistent problem with end position detectors that caused switch malfunctions, THSRC asked Siemens to help find the root cause.
- THSR started operation of its Japanese-built trains with 40 French and 13 German drivers. THSRC planned to train enough local drivers to replace them in 18 months.
Other projects, HTE, the end
Although in the nineties, Eurotrain seriously considered to participate in the expected competition for the Beijing–Shanghai High-Speed Railway, the constituent companies didn't pursue the joint venture further, and competed for further contracts separately.After a meeting on 17 December 1999, freshly installed DB CEO Hartmut Mehdorn
Hartmut Mehdorn
Hartmut Mehdorn is a German manager and current in the supervisory board of Air Berlin, until May 2009: CEO of Deutsche Bahn AG.-Biography:...
and SNCF CEO Louis Gallois
Louis Gallois
Louis René Fernand Gallois is a French businessman and currently the CEO of EADS.-Education:...
called on the European rail industry to create a joint high-speed train platform, to realise economies of scale. DB's spokesman argued that if it is possible for German and French companies to jointly offer Eurotrain in Taiwan, the same should be possible in Europe.
The proposal, dubbed Euro-Train by the media, was taken up as a joint project of European state railways and train producers, with Eurotrain constituents Alstom and Siemens remaining the only industry partners in the project by September 2000. The project was officially named Highspeed Train Europe (HTE), and Italy's state railway FS
Ferrovie dello Stato
Ferrovie dello Stato is a government-owned holding which manage infrastructure and service on the Italian rail network. The subsidiary Trenitalia is the main rail operator in Italy.-Organization:Ferrovie dello Stato subsidiaries are:...
was won as additional partner. However, after the evaluation of 10,000 detail questions, 500 remained in which the partners couldn't compromise, and the HTE project was abandoned in September 2009.