Belgian court overrules Alstom’s appeal of SNCB’s pick for 1.7 billion euro trains deal

By Alban Kacher

(Reuters) – Belgium’s highest administrative court delivered a ruling on Wednesday, dismissing Alstom’s plea to pause the decision by Belgium’s national railway company, SNCB, which had designated the Spanish train manufacturer CAF as the preferred supplier for its AM30 train project.

“Following a preliminary review, the Council of State concludes that the criticisms raised by the company regarding the legality of this appointment were not substantial,” the court stated in an official announcement.

CAF emerged as the selected bidder for the significant contract, surpassing French competitor Alstom and Germany’s Siemens at the end of February.

In April, the court had initially intervened, putting a hold on the SNCB’s order amidst Alstom’s challenge against the ruling.

“We are disheartened by this outcome and the court’s disregard for our arguments. At this point, we prefer not to engage further on this matter,” a spokesperson for Alstom communicated via an email response to Reuters.

This contract decision is pivotal for the future viability of Alstom’s Bruges facility, which faces potential restructuring and risks closure if the situation does not improve.

As the largest tender published by SNCB to date, the contract starts with an initial batch valued at approximately 1.7 billion euros ($2 billion), with additional optional batches possibly elevating the complete contract worth up to 5 billion euros.

Earlier this month, the administrative court also dismissed a separate appeal from Siemens regarding SNCB’s decision.

($1 = 0.8518 euros)

(Reporting by Alban Kacher; Editing by Kirsten Donovan)