Belgium’s national railway operator, SNCB, has ignited a firestorm after naming Spanish manufacturer CAF as the preferred bidder for a EUR 3.4 billion (GBP 2.9 billion) contract to supply hundreds of new trains. Dubbed the “contract of the century,” the decision has drawn fierce criticism from unions, politicians, and Alstom Benelux, which lost out despite offering a lower bid.
A EUR 3.4bn deal to modernise the fleet
Approved unanimously by SNCB’s board on 28 February, the deal aims to replace half of the operator’s ageing fleet with modern MR30 railcars by 2032. SNCB insists CAF was chosen after a rigorous tender process, prioritising the best quality-price ratio over raw cost. In a statement on 5 March, the company said European procurement rules prevented it from favouring local production, despite Alstom’s significant Belgian workforce—480 in Bruges and over 1,000 in Charleroi.
Alstom, whose bid undercut CAF’s by EUR 107 million (GBP 90 million), has reacted with dismay. The company’s Belgian CEO wrote an open letter to federal and regional leaders, including Mobility Minister Jean-Luc Crucke, labelling the outcome “shocking” and warning of job cuts. Unions share the alarm, with workers at Alstom’s Bruges plant stunned by the news. Christoph Flokman of ACV Metea told Euro Weekly News that staff had pinned their hopes on the contract, especially with M7 train assembly work set to end next month.
SNCB defends its choice
SNCB has stood firm, arguing CAF’s offer outscored rivals on quality, promising fewer long-term issues. “The difference in points may seem small, but it matters,” the operator said, noting that all three bids—CAF, Alstom, and a third unnamed contender—were competitive. Negotiations with CAF continue, with a 12-year framework set to deliver up to 170,000 seats.
The decision has fuelled a political row, with critics claiming it undermines Belgian industry. Alstom has hinted at legal action to “preserve its rights,” while unions demand government intervention to safeguard jobs, citing recent closures like Audi Brussels.
SNCB maintains it was bound by EU law, but the controversy has exposed tensions between open competition and local economic priorities. As Belgium braces for potential litigation, the train contract saga is far from over.
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