TRA may warn of consortium’s ill-repute

By Yingrid Ho The China Post

The Taiwan Railway Administration is considering labeling a consortium led by Korea’s Rotem Company as an “ill-recorded manufacturer”, according to another new tender for 160 electric traincars. The move comes after the quality of numerous Korean-made traincars made by the consortium was questioned some weeks ago. A local manufacturer invested by the China Steel Corp., the France-based Alstom, Germany-based Siemens and Japan’s Hitachi are all additional participants in the bidding. Because Alstom and Siemens have been suppliers to Hyundai Precision, a member of the Rotem Consortium, TRA has been urged by the Ministry of Transportation and Communications to probe into their accountability as well.

The consequences of TRA’s resolution might significantly reduce these bidders’ chances of winning the bid. TRA will also decide whether to restrict their right to participate in other bids.

In order to compete with the bullet train anticipated next October, TRA is buying new traincars to replace older models.

A bid of 48 traincars valued at NT$2.78 billion will be awarded by this week.

It is expected that the only bidder, Hitachi, will win the bid after meeting required technical reviews.

Another bid for the purchase of 54 diesel traincars will also be concluded in September.