TRAIN-MAKER Bombardier is now one of only two firms in the running to win a multi-billion-pound contract after one of its rivals was ruled out.

The Department for Transport (DfT) confirmed yesterday that Alstom had been eliminated from the bidding process to build and maintain around 1,100 carriages for the Thameslink project.

Bombardier is now going head-to-head with German firm Siemens Mobility for the deal, thought of as crucial for the UK rail industry.

The Derby firm has a gap in its order book which, if not filled, will leave only one of five production lines at Litchurch Lane in operation during 2011.

Thameslink would be expected to fill this and secure Bombardier's 2,600-strong workforce until 2014 although there is a question mark over when the DfT will choose its preferred bidder and when production will commence.

An announcement was expected from the Government last month.

Yesterday, a DfT spokesman said: "We can confirm that Alstom is no longer in the running for the Thameslink contract and the DfT is still looking at the remaining bids.

"A decision on Thameslink will be made within the next year."

According to the DfT, the manufacturing side of the contract is worth about £1.4bn – but in the event of Thameslink being awarded to Bombardier, the value of maintenance work is likely to be well in excess of £3bn.

In the long term, the deal could be worth more to the company than the £7.5bn Intercity Express Programme for which the Government chose Hitachi ahead of Bombardier as preferred bidder in February.

Bob Rixham, national officer for railways for Unite the Union, said: "From Bombardier's point of view, we believe they learned a lot of lessons from the failure to secure the Intercity Express Programme and improvements have been made in a number of areas."

Hitachi ruled itself out of contention for Thameslink in April. Siemens Mobility, Bombardier's only remaining rival for the Thameslink contract, employs about 1,000 people in the UK in its rail transportation business.

If Siemens won the contract , manufacture of Thameslink trains would be split between Germany, Austria and the UK.

Mr Rixham said: "We want to know what the Siemens bid means for the UK economy and workforce and have asked to meet with them but they have declined that request."

Sim Harris is editor of industry publication Rail News.

He said: "Now that it is just Siemens and Bombardier left in the running, it will be a crucial decision for Derby and for the future of the rail industry in Great Britain.

"The big question is when an announcement is going to be made."

Alstom Transport works on rolling stock and infrastructure projects and has no UK manufacturing base.

Michelle Craven, partner at law firm Nelsons and vice-chairman of the Derby and Derbyshire Rail Forum, said: "We are happy to see that Bombardier is still in the running for Thameslink because it would be good for the region."

See Tuesday's Business Weekly for a report on yesterday's Derby and Derbyshire Rail Forum's annual conference.