EU: The European Rail Supply Industry Association (UNIFE) has called on the European Commission to make several amendments to the public procurement rules. The key suggestions include deterring non-EU companies from bidding for public contracts in the EU if their own countries do not provide a level playing field for the European bidders.
UNIFE also stresses the industry’s strategic importance and insists on providing preference for European railway companies, especially for EU-funded projects. In addition, it is suggested to replace the criterion of the lowest price with the Most Economically Advantageous Tender (MEAT) approach, which allows for more comprehensive evaluation of the rail projects, encompassing ecological and social aspects.
According to the Industry Association, the revamping of the rules is justified by a changed geopolitical context and the necessity to protect the European market from unfair competition, creating predictable conditions for EU players. It is worth noting that the appeals for the market safety are being made in light of a complicated situation in the EU’s major economies. In Germany, small rolling stock and component suppliers are going bankrupt. At the same time, large manufacturers are moving towards developing their production capacities in the USA, India and other countries, which seems to have good prospects.
The EU’s Public Procurement Directives have been in force since 2014. In 2023, there were introduced additional regulations. The tenders with an estimated value above €250 mln have become subject to investigation in terms of involving subsidies from non-EU governments. Under the new regulation provisions, in 2024, CRRC had to withdraw its tender bid for the delivery of rolling stock to Bulgaria.
Meanwhile, UNIFE states that it is time to strengthen the very directives for public contracts. The suggestion can become relevant due to the fact that the majority of rolling stock procurements (locomotives, freight cars, metro trains, trams, track machines, etc.) are under the established control limit of €250 mln, which means open participation in the tenders for state-supported non-EU companies. Moreover, the Industry Association notes that the European producers are facing more and more challenging access to non-EU markets.
