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BRITAIN's secretary of state for transport, Mr Philip Hammond, has confirmed today that railway investment projects worth around £8 billion will go-ahead despite the government's huge deficit reduction programme. "We must carry on investing in the railway," he says. "We can't stand still - it is a crucial part of our economic infrastructure." However, Hammond also confirmed that for three years from 2012 regulated rail fares will increase at 3% above the rate of inflation instead of the current 1% to help fund the investment.

MUNICH City Utilities (SWM) has awarded a Euros 185 million contract to Siemens for 21 six-car type C2 metro trains for delivery between 2013 and 2015. The order includes two options for another 46 six-car trains which can be exercised up to 2016 and 2020. The options are worth an additional Euros 365 million.

GERMAN RAIL (DB) has placed a further order for Talent 2 emus from Bombardier as part of a framework agreement for up to 321 trains, which could be worth up to Euros 1.2 billion. The latest batch of 51 trains comprises 36 three-car and 15 four-car emus for the Mid-German S-Bahn network, which will be delivered in time for the launch of the network in December 2013.

A CEREMONY was held today in Steinbourg, France, to mark the start of civil works on the second phase of the TGV Est high-speed line.
The 106km extension from Baudrecourt to Vendenheim is due to open in 2016 and will reduce Paris - Strasbourg journey times from 2h 20min to 1h 50min, and Luxembourg - Strasbourg from 2h 10 min to 1h 25min.

ITALIAN open-access operator Arenaways launched its twice-daily service between Turin and Milan on Monday, making it the first private company to compete directly with Trenitalia in the domestic intercity market.

HAVAG, the public transport operator in the German city of Halle, has opted to expand its fleet of Bombardier Flexity Classic LRVs with an order for a further 12 vehicles.

SIEMENS has secured a turnkey contract worth more than Euros 200 million to build the second VAL automated metro line in the French city of Rennes. B Line will run for 12.6km on a northeast-southwest alignment, intersecting with the existing A Line at Gares and St Annes in the city centre. The line will have 15 stations and will be underground for most of its length.

ONE of the world's most remarkable urban rail projects, Mecca's Al-Mashaaer Al-Mugadassah metro celebrated a milestone today, when carried its first fare-paying passengers. The 18km line has opened in time for the annual Hajj festival, which draws around 2.5 million pilgrims to the holy city each year.

KAZAKHSTAN Railways (KTZ) has awarded Talgo a contract worth more than Euros 300 million for 420 coaches in the first phase of a programme to replace its entire fleet of 3000 inter-city vehicles.