Bombardier Transportation gets rail car order worth up to $1.6 billion

Agreement includes a first option order for 150 cars

June 15, 2012
by Candian Press

Bombardier Transportation says it has signed a deal worth up to $1.6 billion to supply San Francisco with new rail cars, the latest in a string of major contracts signed with US customers. The Berlin-based subsidiary of Montreal’s Bombardier Inc says it has signed an initial deal with San Francisco Bay Area Rapid Transit District for 260 new rail cars worth $647 million.

The agreement includes a first option order for 150 cars, which the public transit provider plans to place on June 25. The deal also includes additional order options that could bring the total number of cars ordered to as much as 775 and the total value of the order to as much as $1.6 billion.

The new cars will be used to replace San Francisco’s entire existing fleet of rail cars as well as for expansion and will be assembled at Bombardier’s manufacturing plant in Plattsburgh, New York. Bombardier’s business in Pittsburgh, Pennsylvania will supply the propulsion and control equipment.

“Bombardier is honoured to have been selected to build BART’s Fleet of the Future and delighted to add the San Francisco Bay Area to the list of major metropolitan regions across North America and around the world that rely on Bombardier for metro cars that offer the highest levels of quality, performance and reliability,” said Raymond Bachant, president of Bombardier Transportation for North America.

The deal follows another major agreement earlier this month to manufacture 300 subway cars for New York City Transit valued at US$599 million. Bombardier’s current North American orders also include 706 new subway cars for Chicago, 468 cars for Montreal, and 420 cars for Toronto.