News & Reviews News Wire Alstom lawsuit challenges waivers approved by FRA for Brightline West’s trainset order: Analysis

Alstom lawsuit challenges waivers approved by FRA for Brightline West’s trainset order: Analysis

By Bob Johnston | September 18, 2024

| Last updated on September 24, 2024

Brightline CEO Reininger notes both carbuilders requested waivers

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WASHINGTON — Its offer rejected in a years-long competitive bidding process, an Alstom lawsuit challenges waivers for the construction of new Brightline West equipment. The Federal Railroad Administration approved waivers of the “100% Buy America” provisions granted to winning bidder Siemens.

Brightline West selected Siemens over Alstom to build 186-mph Las Vegas-Southern California trainsets by 2028. Siemens recently announced it was establishing a factory in New York State to build the trainsets.

Waivers are necessary in U.S. industries where home-grown technology and manufacturing expertise is scarce or simply doesn’t exist. High speed rail technology exemplifies that situation. European and Asian carbuilders have responded to decades of government financial incentives on those continents to hone state-of-the-art products, setting up affiliates here to tap the nascent North American market.

As first reported in a paywalled report by Bloomberg News, Alstom contends its manufacturing facility in Hornell, N.Y., currently producing Avelia trainsets for Amtrak, qualifies it as a domestic manufacturer with the implication that waivers would not be required.

In a statement to Trains News Wire, Alstom says the company, “proposed a train that contained some modifications of the existing Avelia Liberty trains that Alstom is already producing in Upstate New York, and would be able to meet FRA performance Tier III requirements. The proposal we submitted met the Brightline West specifications.”

The contract Alstom inked with Amtrak in 2016, however, requires trainsets designed to fit constricted Northeast Corridor clearances dating from 1873-vintage Baltimore tunnels and share tracks that also host freight and commuter trains. Given the narrow frame, passengers with disabilities can only be accommodated in “ADA equivalent” portions of the trainset. Avelia also relies on tilting mechanisms to improve speeds around tighter curves that won’t exist on Brightline West’s dedicated right-of-way. In any case, the Alstom vehicles requiring “some modifications” continue to undergo testing to confirm actual performance capabilities, with no revenue service date projected. Avelia trainsets already manufactured will clearly have to be retrofitted with whatever fixes the tests prescribe.

 

Shell for passenger train car under construction inside factory
Alstom lawsuit challenges waivers: A car shell for Alstom’s Avelia Liberty trainset at the company’s Hornell, N.Y. factory on June 12, 2019, required a “Buy America” waiver. The equipment still has not entered revenue service. Bob Johnston photo

Alstom also claims, “Our train proposed for Brightline West meets the FRA Tier III standard for high-speed trains and would be compatible with the California High-Speed Rail system or any other high-speed system built to accommodate Tier III trainsets.”

But a significant objective in the procurement process was to have equipment tested and ready for the 2028 Los Angeles-based Olympics. A specified delivery timeline is the purchaser’s prerogative that no doubt weighed heavily in Brightline West’s choice of Siemens, based also on the operator’s experience for equipping its Florida operation.

Additionally, the California High Speed Rail Authority requires trainsets that can reach 220 mph and are wide enough to accommodate passengers with disabilities throughout. To speed up testing a wider car shell than the carbuilder’s Velaro Novo, Siemens proposed constructing and initially testing two trainsets in Europe while the Las Vegas-Rancho Cucamonga route is under construction. This was one of the waivers approved by the FRA after Siemens was chosen as the winning bidder. There are no tracks capable of accommodating 220 mph speeds in the U.S.

In a statement to Trains News Wire, Brightline CEO Michael Reininger, says his company, “conducted a comprehensive procurement process for our high-speed trainsets based on specific criteria and requirements. Upon receipt of best and final offers from the two finalist competitors [Siemens and Alstom], we objectively evaluated the proposals across a range of considerations including price, schedule, performance characteristics, economic implications for our business, guest comfort, and other important product features.”

He notes, “Each finalist required Buy America waivers in connection with its proposal.  We ultimately chose the Siemens product as it is superior in all regards and consistent with our desire to initiate the high-speed rail industry in the US with the introduction of the most advanced train solution available to us.”

Reininger adds, “We are disappointed that Alstom has chosen to contest the issuance of waivers by the FRA, which will expedite the delivery of our trainsets and bring technology to America that will broaden its competitiveness an evolving industry. Everyone involved in the advancement of high-speed rail for America should look to avoid the kind of roadblocks that are counter-productive to realizing the vision shared by so many for the future of American transportation.”

9 thoughts on “Alstom lawsuit challenges waivers approved by FRA for Brightline West’s trainset order: Analysis

  1. This lawsuit has appearances of being done for the stockholder’s consumption. Alstom needs to placate the stockholders as it appears it was not considered by Brightline. It is easy for Alstom to blame the FRA waivers.

    Instead, no consideration is given to the fact Alstom has delayed Acela-2 in service for almost 2 years. As well 25,000+ open items on train sets sent to Amtrak for Acceptance is public knowledge. Who knows what Brightline may as well know privately about the AX-2s? Fortress may well have said no to Alstom purchases. Any management involved with Brightline west would certainly know the problems of meeting summer 2028 full operation with Alstom.

    1. What may be telling is if Alstom does anything to attempt to delay the Brightline west full operation.

  2. First, Amtrak had Alstom remove the Acela II sets that were in Penn Coach Yard. Two test trains remain.

    Second “fit constricted Northeast Corridor clearances dating from 1873” descibes every new passenger car since 1873, except Dome and High-Level cars. Funny thing is, the cars ordered before WWII were delivered sooner (after the war) than these.

    1. Too bad. They looked good all lined up like that, even though they were rusting to the rails. Maybe they can be regauged for broad gauge and sent to Ukraine as part of an aid package.

  3. Alstom’s stance would have a WHOLE LOT more credibility if their latest product was in revenue service right now instead of taking up track space in Penn coach yard.

  4. Majority Leader Schumer will arrange to swat this fly away. I also notice that no injunction or temporary restraining order is sought to stay execution of the Brightline-Siemens contract.

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