The efficiency of Crossrail
A former VP of Project Management at Bombardier Transportation discussed Crossrail – the new high-speed railway line that crosses London from Berkshire to Essex – explaining that although Bombardier is attempting to increase efficiency for the Crossrail and Lotrain projects, it could have a difficult time reducing costs, especially considering the core of the infrastructure for London Underground is fifty to sixty years old. The former VP suggested that instead, Bombardier should focus on finding low-cost suppliers “where the labour rate is far lower,” but that this could reduce the quality level of the final product if it isn’t adequately monitored. The specialist added that obtaining meaningful price concessions would be difficult, especially considering high start-up costs for new suppliers in the rail industry. Although “negotiations have taken place at the highest level to seek reductions within the supply chain,” the former VP hinted that the lack of new suppliers could continue being an issue for the company.
Read More
Submit your details to access the latest Quarterly Trends Report from Third Bridge.
