Alstom Wins 270 Million Euro Order to Expand Melbourne Train Fleet
Melbourne, Tuesday, 4 August 2026.
Australia’s Victorian Government has ordered 25 additional electric trains from Alstom for €270 million, doubling its fleet expansion to replace commuter trains dating back to the 1980s.
Contract Extension and Financial Impact
The agreement, announced on 4 August 2026, exercises an option within the existing framework to procure 25 additional six-car X’Trapolis 2.0 electric trainsets [1]. This procurement brings the total fleet order to 50 trains, significantly expanding the modernized capacity for Melbourne’s commuter rail network [1]. The value of this extension is fixed at €270 million, reflecting a strategic investment by the Victorian State Government into sustainable public transit infrastructure [1].
Contract Extension and Financial Impact
For Alstom (ALO.PA), this order contributes to a robust fiscal year performance, following reported revenues of €19.2 billion for the period ending 31 March 2026 [1]. The contract value represents a notable portion of ongoing orders, supporting the company’s global workforce of 87,800 employees [1]. The deal underscores the stability of long-term government partnerships in the rail mobility sector [1].
Modernizing Melbourne’s Rail Network
The initial contract for the first 25 trains was awarded in 2021, marking the beginning of a multi-year delivery schedule [1]. The first X’Trapolis 2.0 train officially entered passenger service in May 2026, specifically noted as commencing on 3 May 2026 [1][3]. These new units are designed to replace legacy fleet units that date back to the early 1980s, offering improved energy efficiency and passenger capacity [1].
Modernizing Melbourne’s Rail Network
Each six-car trainset features a capacity of 1,225 passengers, utilizing a continuous walkthrough design to optimize flow [1]. With the full order of 50 trains, the total network capacity addition will amount to 61250 passenger seats across the fleet [1]. This expansion is critical for accommodating growing commuter demand in the Victorian capital [1].
Strategic Growth in Australia
Beyond the commuter rail network, Alstom is also delivering 100 Next Generation G Class Trams under a separate €700 million contract awarded in 2022 [2][4]. The first of these trams entered passenger service in 2026, paralleling the rollout of the X’Trapolis 2.0 trains [2]. This dual delivery highlights the company’s deep integration into Australia’s urban transport infrastructure [2].
Strategic Growth in Australia
Manufacturing for these projects emphasizes local content, with the Dandenong site in Victoria maintaining a 65 percent local content threshold for the tram project [2][4]. Alstom has invested approximately EUR 24 million in infrastructure and equipment at the Dandenong factory to support this production [2]. This approach supports over 2,000 direct and indirect jobs within the region [2].
Strategic Growth in Australia
Maintenance for the new tram series will be handled through a purpose-built facility in Maidstone, Melbourne [2]. The concurrent delivery of trains and trams in 2026 reinforces Alstom’s position as a key supplier for Australian rail transport [2]. The company continues to leverage its Adessia and Flexity 2 platforms to meet specific local requirements [1][2].