Monday, November 28, 2016

The supply of Talgo won the megacontrato for Renfe with a strong discount – Yahoo Finance Spain

MADRID (Reuters) – The minister of Fomento, Spanish, Iñigo de la Serna, on Monday announced the final award of a multi-million dollar contract to supply trains for Renfe is the Spanish Talgo.

the offer of The basque group competed with others in the Spanish CAF, the canadian Bombardier and German Siemens for 30 trains (15 firm orders and an option for 15 more).

“The contract, Renfe has awarded Talgo, your offer includes a discount of 28 percent on the initial price in the manufacture of the trains,” said the minister.

The minister explained that with the supply of Talgo, each train will cost 22.5 million euros, to which amount must be added the cost of maintenance for the next 30 years.

The total amount of the first batch — the manufacture of the 15 trains plus the maintenance for 30 years — will add up to 786 million euros and the maximum price — 30 trains plus a maintenance to 40 years — will be of 1,400 million euros, a discount of 46 per cent on the original amount.

“Spain will count with the trains more efficient and cheaper in the market,” said De la Serna.

Talgo won with his model “Avril”, which can be driven to 330 kilometers per hour and transport to 521 passengers, with five seats per row, one more than at present.

Serna said the contract will create 1,000 jobs during the five years of production, which will add more than 100 jobs/year during the maintenance period.

The information that Talgo was the “virtual winner” of the contract following the opening of the envelopes with the bids shot up the shares of the company last week. .

Monday, their titles, earned another 3 percent to about 5,08 eur. Since last November 17, the actions of the group accumulates a revaluation superior to 31 percent, after news also a pre-arrangement of the consortium in which participates the company to defer the completion of the construction of the high speed train Medina-Mecca.

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