Belgium train operator grants Spain’s CAF €3.4b contract

The National Railway Company of Belgium announced on Wednesday that the Spanish train manufacturer CAF had outbid all of its competitors and won a contract worth 3.4 billion euros to build hundreds of new trains for Belgium’s rail fleet. press release. Local unions, however, are not happy with the decision. They have concerns about domestic employment.

SNBC intends to upgrade at least 50% of its fleet to 2023, and to increase it wherever possible in order to keep up with the expected growth in passenger demand.

The company said that the 2023-2032 Public Service Contract signed with the Belgian Government in December 2022 stipulated that 50% of the SNCB’s fleet would be replaced by the end. This was to accommodate the anticipated growth in passenger numbers and improve customer comfort. It also included the replacement of aging rolling stock, which is prone to breakdowns, with more flexible, efficient rolling stock.

CAF delivers on time and at the right point

CAF has outbid both of the other bidders because the Belgian firm believes that they can deliver the railcars in time as this is a top priority for the country.

The company said that “the Board of Directors approved both the selection criteria and the award criteria, and launched an European call for tenders to establish a framework agreement for the delivery of railcars with 54,000 seats included in the initial order.”

The statement explained that new trains should offer passengers all the comfort they need, including quiet zones, information screens and connectivity.

SNBC reported that the order would include battery-powered railcars to eventually replace diesel railcars.

The rules for bidding require that manufacturers mention their use of local service providers. 

As part of the ongoing discussion with the preferred bidding company in preparation for the award decision, the Board of Directors has instructed the management to request from CAF confirmation that its activities are compliant with international law and the human rights.

Belga News Agency reports that the Belgian Council of State temporarily suspended NMBS’s decision in February 2025 to appoint CAF the highest-ranked bidder. reported.

Sparking controversy

NMBS reevaluated their decision in response and released a new explanation that was in accordance with the Council’s ruling. The company has stated that the original ranking of the bidders—CAF, Siemens, and Alstom—remains unchanged following further legal and technical analysis.

Belgian News Agency also stated that the decision to award the CAF contract has caused controversy in Belgium. 

They noted that “Trade unions, local politicians and other stakeholders have voiced their concerns about the exclusion of Alstom France, warning this could threaten the future of the Bruges plant, which employs over 100 people.” “Critics claim that SNBC has failed to give priority to domestic employment.”

SNBC is in the process of negotiating with CAF and will receive formal confirmation from the Spanish company that their operations won’t affect local employment.