CEO unhappy Chinese company to expand Swedish metro

stockholm metro line

The yellow line is the new line, which is expected to be finished in 8 years. Photo: Region Stockholm

The Stockholm metro is due to expand with a new line, and the state-owned Chinese company China Railway Tunnel Group (CRTG) has won the bid to a procurement contract.

CRTG has to fork out 28 USD for three tunnels for the preparatory work of the new metro line according to business newssite Dagens industri.

While Niklas Bergman, manager of the metro development at Region Stockholm, is happy with the price, not everyone shares the excitement about the deal.

Patrick Marelius, CEO of Subterra Sverige, told Dagens industri it was far below cost price and that it will be impossible to do the work for that money. Subterra Sverige was the runner-up in the bid.

The CEO is also dissatisfied with the fact that a Chinese company was even able to enter the market and make a bid. It could affect the security of the Swedish capital.

But Niklas Bergman dismisses the idea that bringing a Chinese company to the underground of Stockholm should pose any security risk.

“We haven’t evaluated that. We have evaluated based on qualification requirements and price and we have evaluated all entrepreneurs in an equal way,” the manager told Dagens industri.

The contract is only the first of more than 30 major contracts over the next few years, it is expected.

So far Stockholm has three metro lines, the blue, red and green lines. If everything goes according to plans, Swedes can look forward to using the new line, which will be yellow, in eight years. It will cover 11 stations on a stretch of 20 kilometres of new tracks.

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