Unpaid fees by Alstom for delayed train deliveries to Romania mount to 50 million euros
In the whirlwind of railway business, Alstom is feeling the heat from Romania's Railway Reform Authority (ARF), who's about to slap a whopping Euro 50 million fine (excluding VAT) due to late delivery of 37 trains worth RON 2.4 billion (EUR 480 million). Sounds like a tough break for Alstom, huh?
As things stand, only two electric trains out of the 37 interregional multiple electric frames RE-IR have been delivered, with one already in operation. Ouch, that's a long way from the goalpost! The contract also includes a 15-year maintenance period, but apparently, this ain't enough to get the trains delivered on time.
In a bold allegation, passenger railway company CFR Calatori—the intended recipient of 12 out of the 37 trains—claims to have suffered a cool RON 30 million losses from these delays last year. Yikes!
To add insult to injury, CFR Calatori had planned for the first electric train to roll in during December 2023, with the remaining 12 following by the end of February 2024. Guess what? ARF assures us that these penalties were not waived, dismissing CFR Calatori's claims.
Here's the catch: the third train was supposed to reach ARF by March 2025, but it went MIA. And if that wasn't enough, the last three trains are now slated for delivery in January 2026. Talk about a long wait!
Now, let's delve into the potential reasons behind this delay:- Burdened Contractual Obligations: Alstom might've bitten off more than it could chew, underestimating the complexity of the project or the time needed to manufacture and deliver the trains.- Crippled Suppliers and Materials: Delays in receiving crucial components or materials could've hampered Alstom's ability to complete the trains on time.- Hidden Regulatory Issues: There just might've been under-the-radar regulatory hurdles or changes in standards that Alstom had to grapple with, leading to delays.- Plagued by Technical Challenges: Engineering or manufacturing issues could've arisen during the production process, demanding extra time to rectify.
Without granular details on the root cause of the delay, it's tricky to pin down a single culprit here. Nevertheless, late-delivery penalties are a regular sting in the tail for contractors who fail to meet their set deadlines in massive projects like this.
iulian@our website(Photo source: Facebook/ARF-Autoritatea pentru Reforma Feroviara)
- The Railway Reform Authority (ARF) in Romania has updated the penalties for Alstom, a company in the finance and business sector, due to their late delivery of trains worth RON 2.4 billion (EUR 480 million), which includes a Euro 50 million fine (excluding VAT).
- The intended beneficiary of 12 out of the 37 trains, CFR Calatori, alleges that it has suffered a loss of RON 30 million due to these delays in the industry.
- The industry is awaiting the delivery of the remaining trains, with the third train expected in March 2025 and the last three in January 2026, a significant delay from the initial plans.
- Possible reasons for this delay in the railway business could be burdensome contractual obligations, issues with suppliers and materials, hidden regulatory issues, or technical challenges faced by Alstom in manufacturing the trains.
