EU: Austrian Transport Minister Peter Hanke announced that the relevant initiative would be submitted to the European Commission before the end of the year. His statement came against the backdrop of widely discussed news about the imminent entry into service of double-deck trains imported from China.
Hanke pointed out that state subsidies enable CRRC to offer trains at prices up to three times lower than those of European manufacturers, posing a threat to national industry and raising additional cybersecurity concerns. As an example, he cited the case of Oslo, where a Chinese supplier was accused of being capable of remotely disabling electric buses.
Austria’s Transport Minister proposes introducing 5 additional criteria into procurement procedures:
Technological sovereignty. Tender requirements should ensure that full control over the software and control systems of transport vehicles remains within the EU. It is worth recalling that in 2020 the United States banned the purchase of CRRC rolling stock due to cybersecurity risks.
Social standards. The winning bidder and its products must comply with EU environmental and labour standards. The methodology for calculating a “social footprint” was developed several years ago: the first declaration—for trains destined for Italy—was prepared by Hitachi Rail.
Added value creation. A mandatory quota for local added value creation within EU member states should be introduced (i.e. establishing production and sourcing from local suppliers) whenever public funding is involved in procurement.
Lifecycle transparency. Full lifecycle costing should be required, including maintenance and spare parts expenses.
Security audits. Regular inspections of digital systems should be conducted to identify vulnerabilities and backdoors.
Hanke’s criteria closely align with an initiative by the European rolling stock manufacturers’ association UNIFE, which earlier this year urged the EU to prioritise European-made products and establish comprehensive evaluation criteria for tenders.
The move to counter Chinese expansion in the EU rolling stock market through stricter regulation of procurement and asset transactions has been under way for several years. Notably, a new investigation has recently been launched into CRRC’s role in a consortium that won a tender for a tram line project in Lisbon. As expected, it outbid competitors with the lowest price offer.
An alternative approach to countering CRRC’s influence in the EU market has been voiced by Petr Novotný, CEO of the Czech-based Škoda Group. In a recent interview with Poland’s Rzeczpospolita, he emphasised the need to consolidate efforts in R&D, manufacturing, and component supply chains to achieve economies of scale and reduce costs. Novotný also reiterated his support for the creation of a pan-European “champion”, noting that such a move aligns with the EU’s export growth objectives.
