Thales Canada, Transportation Solutions 105 Moatfield Drive Toronto, Ontario Canada M3B 0A4 Tel. (+1) 416-742-3900 Fax.(+1) 416-742-1136 www.thalesgroup.com 08/19/2015 Thales’ Statement Re: the Metro Line project update Following the statements released at the Edmonton City Council meeting on Monday night regarding the updated status of the Thales-provided train control system and the role Thales has played in the project, we wish to exercise our right of answer as well as provide a clear and balanced response. Thales feels that it has been misrepresented and that there was misinformation concerning the Metro Line issues. Here is what we have to say:  We emphasize that Thales began working on a staged implementation on February 2014, at the request of the City, and while it has significantly impacted our ability to progress the actual contract, we’ve expended the additional resources needed to accomplish the intermediate mode of operation that was requested.  Concerning the “safety issue”, and despite repeated requests, Thales is still not in receipt of an official copy of the Safety Audit report compiled by the City’s consultant. Thales has still not th received a description of the operation planned for September 6 , the extent (if any) to which the Thales system will be involved in that operation, or whether any of the parameters that Thales has specified for safe operation will be followed or met. We have not been advised of any actual safety issue or deficiency in either the design, the implementation, or in the Safety Case for the system that we have provided. We therefore do not understand the City’s position that the system is deemed unsafe when no such problem has actually been identified or articulated.  In regards to the so-called “lack of documented evidence supporting safety certification…” Thales provided a complete Safety Case, a case that authorizes the system for operation. A careful reading of the consultant’s report (assuming the copy we have in our possession is the final, released version) shows a lack of understanding by the consultant of the processes used to commission a CBTC system, a desire for more information beyond what the contract requires to satisfy their learning curve, and most interestingly, a disclaimer of any actual knowledge of the Work. All of this leading to their conclusion of neutrality, meaning they are unable to take a position whether the system is safe or unsafe.  In regards to the Line of Sight Operation that will be implemented on September 6 : as the manner and method of this scheme have not been shared with us, nor have we received any indication as to the extent our system will be involved in this operation, Thales is unable to th endorse or support this service starting September 6 . The description provided to Council fails to make clear whether any portion of the Thales system will be involved. If it is not, there will be NO signal protection or enforcement within this totally manual operation. Safety relies entirely on the Motorman. The consultant is described as having approved the Thales system suitable for training but not passenger operation. One can wonder why the Thales system safe enough for the train drivers, but not the traveling public, and why NO signal protection is better th OPEN Any dissemination, copying, or use of this message or its contents by anyone other than the named recipient is strictly prohibited. Ref : Business Identifier TRN : [If applicable)] Template : 83410501-DOC-CAN-EN-003 1/2 for the Public than the level of protection afforded the train operators during training. These determinations cannot be made without any articulation of a safety problem with the Thales system.  th If the use of the Thales system is contemplated starting September 6 (which still has to be confirmed) with an imposed 25 kph speed limit, it’s important to understand that the speed limitation will be entered into and enforced by the Thales system. The implication being then that somehow the Thales system is safe at 25 kph, but not above. This displays a complete lack of understanding of the Thales system. The speed is enforced the same way whether it is 25 kph or at the line speed. Finally, the recommendation to open the Metro Line with this new scheme deemed “safer” could have been made four months ago, when Thales handed the system over for operation. th Thales wishes ETS all the best as it prepares for its Line of Sight operation starting the 6 of September. We will provide the City with any needed support. And in the meantime, we will continue to progress the work elements associated with the main contract. OPEN Any dissemination, copying, or use of this message or its contents by anyone other than the named recipient is strictly prohibited. Ref : Business Identifier TRN : [If applicable)] Template : 83410501-DOC-CAN-EN-003 2/2