Spanish railway company CAF has signed a framework agreement with Belgium’s national carrier SNCB worth $3,7 billion to realise the country’s largest railway project. The agreement is seen as an important step towards strengthening CAF’s position in the Belgian railway market.
Contract and Train Models
The tender was launched at the end of 2022 and CAF won the project, beating its competitors. According to the contract, CAF will deliver double-decker AM12 electric trains and single-decker MR30 trains over 30 years. The AM30 trains include three- and four-car models that can reach speeds of 160 km/h, while the MR30 trains can reach speeds of up to 120 km/h when powered by batteries. However, the exact delivery figures have not yet been announced.
Production and Plans
CAF will manufacture the trains using the Civity platform. The first AM30 trains are expected to be in operation in Q2029 2. This supports both Belgium’s efforts to modernise its railway infrastructure and CAF’s strategy to increase its influence in the European market.
Competitors' Reactions and SNCB's Decision
CAF’s rivals Alstom and Siemens Mobility challenged CAF in this tender, but the Spanish company won with a clear advantage. Despite Alstom’s bid being $108 million cheaper, it was unable to change SNCB’s decision. Bernard Belvaux, Alstom’s General Manager for Benelux, sent a letter expressing his concern over SNCB’s choice, highlighting the business risks to the carrier.
Charleroi Mayor Thomas Dermine criticised CAF’s lack of local factories and defended the importance of local production in Belgium, a criticism also triggered by delivery delays on SNCB’s previous Alstom contract.
EU Laws and Criticisms
SNCB countered the criticism by stating that local production offers no advantages under EU law and that only 50% of tender points are assessed on price. This means that price in particular plays a large role in tender evaluation.
CAF's Role and Future in the European Market
This agreement strengthens CAF’s strategic position in the European market. Belgium will gain modern rolling stock from CAF, improving the quality of passenger service, and carrier SNCB will advance its ambitious network plans. With this agreement, CAF aims not only to increase its market share in Belgium, but also to establish a greater footprint across Europe.
