The Australian business newspapers and websites are all reporting on the “dud” contract that Downer EDI has been saddled with over the construction of 78 eight-car trains for New South Wales’ RailCorp. Market analysts say that company has lost $A1.7 billion in value this year.
CEO Geoff Knox, a man in genuine risk of becoming unemployed, is quoted as saying:
“We do seem to be able to build trains successfully and make good money on other states in this country, but in this state we seem to not do well and others seem to not do well…”
Others can discuss the financial problems of Downer EDI but Knox seems to only look at the contract rather than the reasons behind the “time consuming” design requirements of the contract – The Waterfall rail disaster of January 2003, the commission of inquiry’s reports and the government’s promises.
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