The revamping of the Czech Republic’s rail network and plans to develop a high-speed train in the country are among the reasons why Skoda Transportation and its parent company PPF Group, both hailing from the Central European territory, have turned their attention to Spanish train maker Talgo and responded to Moncloa’s call for a rescue to keep it out of Hungarian hands.
The Czech Republic has the densest rail network on the continent. This small country has 16,000 kilometers of roads, 6,000 of which are electrified, but most of them are outdated and do not allow speeds above 150 km/h. For this reason, the country’s Ministry of Transport decided to change its mobility strategy a few years ago and agreed to allocate 27 billion euros for modernization and expansion of the railway network over the next decade.
The 30-year plan that hasn’t started yet
Prague’s plans include reconstruction and renewal of traditional networks by installing an alarm ERTMSwith which the EU hopes that any train will be able to travel through any country without technical or physical barriers. But there is no doubt that Her star project is the construction of a new high-speed line between Prague and Dresden. (Germany), connecting the two cities in about 50 minutes.
This route will be divided into two sections: the first from Prague to Ústí nad Labem, which will only carry passengers maximum speed 320 km/h; and a second section in the Central Bohemian Region, which will share traffic with freight trains, reducing the speed to 200 km/h. Plans include building a 26-kilometer tunnel under the Ore Mountains, which separate the Czech Republic from Germany. The Czech government intends to begin construction in 2025. although commissioning may be extended until 2050.
This project will expand to the southeast with the aim of reduce travel time between the country’s capital and the second most populous city of Brno. For this purpose, a second 90-kilometer section will be built in the Vysočina region, near the city of Jihlava, the studies of which were recently put up for auction. This central layout alone will cost 13,000 million euros and will allow you to cover the 220 kilometres that separate the two municipalities in one hour, compared to the more than three that had to be covered in the recent past.
This is where Talgo and Skoda come into play.. Czech state-owned operator Ceske Drahy has acquired rolling stock capable of travelling at 200 kilometres per hour and in recent years has begun ordering locomotives and passenger carriages capable of travelling at 230 kilometres per hour. But once services begin on the high-speed lines, the company It will need new trains capable of speeds in excess of 300 km/h, a material that local industrial player Skoda does not produce..
And Talgo specializes in fast long-distance trains.. Its current portfolio includes two models acquired by other European players: the Avril, acquired by Renfe and for which a second generation is already being developed; and the Talgo 230, built for German giant Deutsche Bahn and its Danish counterpart DSB. These units consist of a locomotive and 17 passenger cars, capable of reaching speeds of 230 km/h; while the Avrils exceed 300 km/h, making them ideal for long routes.
Except, This model attracted the attention of the market because it is capable of moving on any type of road.be it the Iberian gauge (present in Spain), the international gauge (on all European high-speed routes) or even the Russian gauge, operating in the countries of the former Soviet orbit. Hailed as the “most versatile train in the world”, for which the Hungarian Magyar Vagon is eager to participate in the reconstruction of Ukraine and connect it with the EU countries, has not gone unnoticed by Skoda either, given the opportunities it will have to increase business in Eastern Europe.
In addition to the business opportunities associated with large public works, Czech Railways also benefit from market open to competition in other services, such as line work. In fact, the Spanish Renfe is one of those who, taking advantage of the liberalisation of high-speed transport at the European level, took a position in the Czech Republic, acquiring 50% of the company Leo Express.
Other private players such as RegioJet, Arriva GW or Train Regio are also operating in the country and once a fast network is built, they will also want to get their share of the market, so the opportunities contracts for the supply of chain rolling stock over the next decade They are very greedy for producers who do not want to miss even an opportunity.
Visits of Oscar Puente
Knowing about these plans, the Minister of Transport Oscar Puente rushed to visit the Czech Republic in his first months as head of the ministry, with the aim of positioning Spain and its companies in this emerging market. Thus, Puente attended a business forum on transport organised by ICEX in Prague on 21 May and met with Spanish businessmen, whose “great potential and experience” he offered to the Czech government for the development of the high-speed train.
Taking advantage of this visit, he also met with his Czech counterpart Martin KupkaA meeting was held in Prague where he spoke in detail about “Spain’s full cooperation in the Czech high-speed project.” As elEconomista.es has learned, taking advantage of this meeting, Puente gave Kupka details of negotiations with Skoda. It is worth remembering that a few days before, several directors of the Czech group had travelled to Madrid to inquire about the possibility of acquiring Talgo. When asked about their cooperation in Moncloa’s attempt to formulate an alternative to the Hungarian takeover bid: The Czech government claims to have received “basic information” during the joint meetingalthough they deny that they are cooperating in its implementation: “We do not provide assistance, it would be inappropriate,” they say.