TORONTO – Bombardier’s rail division says Ontario’s GO Transit system will be getting 125 additional two-level commuter rail cars to be produced over a two-year period at its factory in Thunder Bay, Ont.
Bombardier (TSX:BBD.B) valued the order at C$428 million (US$328 million).
Production of the bilevel rail cars is scheduled to start in the northwestern Ontario city in the second quarter of 2018, and final delivery is scheduled for the first quarter of 2020.
The Montreal-based company announced the order from Berlin, Germany, where its Bombardier Transportation rail equipment business has its global headquarters.
The order is the result of a conversion of purchase options held by Metrolinx, the Ontario government’s regional transportation agency for the Toronto and Hamilton areas.
Bombardier says the cars have been deployed or ordered for transit authorities in 14 metropolitan regions across Canada and the United States.
In April, Bombardier announced it’s cut by more than half the number of streetcars it had promised to deliver to the Toronto Transit Commission this year, the latest in a string of delays that’s angered the TTC, city council and Mayor John Tory.
Bombardier was supposed to have delivered almost 70 new streetcars to Toronto by now, but a TTC spokeswoman said Tuesday it has only 23 on the road and is hoping for 31 by the end of the year.
The TTC is applying for damages under the terms of its contract with Bombardier, and is still determining whether to sue the company.