North East MPs and business leaders are backing Hitachi’s bid for a £500m contact to build new trains for the Tyne and Wear Metro.
Hitachi has submitted a proposal to build 54 new trains at its plant in Newton Aycliffe, County Durham.
Winning the contract would secure jobs at the factory, where 730 permanent staff are employed, and many more among North East firms that supply parts and services.
Tyne and Wear passenger transport authority Nexus now faces the task of deciding whether to pick Hitachi - and ensure the trains are built in the region - or a rival bidder.
James Ramsbotham, chief executive, North East England Chamber of Commerce said: “We are fully behind our member Hitachi’s bid to produce the new trains for the Metro network.
“This business has invested £100million in its state-of-the-art train factory in County Durham.
“As well as creating over 700 permanent jobs at the site, its investment supports businesses across the North East through the extensive use of local suppliers.
“I also know that over 70% of parts for Hitachi’s intercity trains come from within a 40 mile radius of the factory, supporting hundreds of jobs in the North East.
“Whichever company is awarded this contract, in my view, they will need to show similar determination to help grow our regional economy.”
Winning this contract is particularly important for Hitachi because the firm is close to completing new trains, known as Azumas, for the East Coast Main Line. It means production lines could stand idle if new work doesn’t come in, putting jobs at risk.
Local MPs are backing Hitachi’s bid. Newcastle North MP Catherine McKinnell said: “The new Metro trains have been a long time coming, and the funding to secure them was very hard fought for - so we really should be working to ensure our region gets as many benefits from this investment as possible, including by supporting good local jobs and apprenticeships.
“We have a very proud history of rail innovation and engineering in the North East, and it would be such a vote of confidence in our local economy if the new Metro fleet were built right here in the region by Hitachi.”
Newcastle East Nick Brown said: “I think it would be great if the trains for the North East metro could be built in the North East.
“Hitachi are relatively new to the region. They are great corporate citizens and would do a first rate job for Tyne and Wear.”
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Sedgefield MP Phil Wilson said: “It would be really excellent if Hitachi was to win the bid, because it would mean the trains would be built in the North East for the North East.
“It’s a perfect opportunity to boost North East manufacturing for something that’s important for the North East, the Tyne and Wear Metro.
“There will be cross-industry and cross-party support for this.”
Guy Opperman, MP for Hexham, said: “I am fully supportive of Hitachi and am keen for North East-based companies to get North East jobs.”
Nexus announced a shortlist of five bidders last September. As well as Hitachi they included Spanish firm Construcciones y Auxiliar de Ferrocarriles, Swiss manufacturer Stadler Bussnang and Downer EDI Rail Pty Ltd, a joint-venture between an Australian and a Chinese firm.
Bidders also included Bombardier Transportation UK Ltd, which has a plant in Derby.
Firms were invited to submit their proposals by the end of last week. Nexus will announce a new shortlist of three bidders in June and the winner be named in November.
The Department for Transport, which is providing £337m towards the projected £362m cost of the new trains, will then have to approve the decision.
And the contract includes maintenance of the fleet over 35 years, taking the total value to £500m.
Nexus has told the shortlisted bidders to design trains with better seating layouts, wider doors, wide aisles and a layout to encourage flow of passengers through the vehicle.
There will be improved WiFi for passengers, and air conditioning.
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A Nexus spokesman said: “We have received the written tenders to supply us with a new fleet of Metro trains. These bids are now being evaluated in line with the procurement process. The shortlist will be narrowed down to three bidders in June and the preferred bidder will be revealed at the end of the year.
“We aim to see the first new Metro trains being delivered to us by late 2021.”
An Hitachi Rail spokesperson said: "We are pleased to confirm that our Tyne and Wear Metro bid has been submitted. We are now subject to public procurement rules so we are unable to provide further updates or comments."
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