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Bombardier lands $590M contract to build cars for New Delhi subway
Rail backlog $27B U.S., analysts say. 340 units to be assembled in India plants
ROBERT GIBBENS,
The Gazette, Canada
Published: Friday, July 20
Bombardier Inc. is deepening its footprint in the burgeoning mass transit markets of Asia with an order worth $590 million U.S. to build 340 subway cars for the New Delhi Metro Rail Corp. in India.
The subway trains will be mostly produced in Bombardier's Indian plants with deliveries from late 2008 through 2010 - in time to beef up public transit for the Commonwealth Games due to start in October 2010 in New Delhi.
Analysts estimated the order brings Bombardier Transportation's net backlog of rail equipment orders to well over $27 billion U.S. The transportation unit's orderbook is normally larger than aerospace's.
The contract was announced just after the Metronet consortium rebuilding two-thirds of London's Underground (subway) ran out of cash and went into creditor protection.
Bombardier denied reports its $6-billion (U.S.) contract to build subway trains, renovate older equipment and provide long-term maintenance, is in danger. It said Metronet's new administration has said all existing contracts will be honoured.
The New Delhi Metro's network is being expanded by a 60 kilometres, covering its north-south and east-west lines. The city has a population of 16 million.
"We've been operating in India for 35 years and we want this contract to set the standard for other mass transit projects we're pursuing in New Delhi, Mumbai, Hyderabad, Bangalore, Kochi, Chandigarh and through India," AndrE Navarri, president of Bombardier Transportation, said in a statement.
The stainless steel car bodies, bogies and propulsion systems for the first units will be made in Bombardier plants in Germany and Sweden with final assembly in India. Later, the Indian plants will take over almost full production. Bombardier is one of the first private companies chosen to build rail vehicles in India.
The 340 cars will form four-car trains with a capacity of 1,480 passengers each. Design is being done by Bombardier's engineering centre in Hyderabad, working with its Swedish plant. No details of contract financing were disclosed.
Bombardier says it is the world's leading supplier of subway trains. Its equipment is rolling in New York, Toronto, Paris, London, Berlin, Bucharest, Stockholm and Shanghai, as well as Montreal.
It was the first Western firm to build trains in China and it is a big supplier to Indian Railways.
"China, India and Russia, the world's fastest-growing economies, are opening up to foreigners - and Bombardier, Alstom and Siemens are moving right in," an industry analyst said. "Five years ago, those markets were mostly reserved for state-owned manufacturers. "
Rail backlog $27B U.S., analysts say. 340 units to be assembled in India plants
ROBERT GIBBENS,
The Gazette, Canada
Published: Friday, July 20
Bombardier Inc. is deepening its footprint in the burgeoning mass transit markets of Asia with an order worth $590 million U.S. to build 340 subway cars for the New Delhi Metro Rail Corp. in India.
The subway trains will be mostly produced in Bombardier's Indian plants with deliveries from late 2008 through 2010 - in time to beef up public transit for the Commonwealth Games due to start in October 2010 in New Delhi.
Analysts estimated the order brings Bombardier Transportation's net backlog of rail equipment orders to well over $27 billion U.S. The transportation unit's orderbook is normally larger than aerospace's.
The contract was announced just after the Metronet consortium rebuilding two-thirds of London's Underground (subway) ran out of cash and went into creditor protection.
Bombardier denied reports its $6-billion (U.S.) contract to build subway trains, renovate older equipment and provide long-term maintenance, is in danger. It said Metronet's new administration has said all existing contracts will be honoured.
The New Delhi Metro's network is being expanded by a 60 kilometres, covering its north-south and east-west lines. The city has a population of 16 million.
"We've been operating in India for 35 years and we want this contract to set the standard for other mass transit projects we're pursuing in New Delhi, Mumbai, Hyderabad, Bangalore, Kochi, Chandigarh and through India," AndrE Navarri, president of Bombardier Transportation, said in a statement.
The stainless steel car bodies, bogies and propulsion systems for the first units will be made in Bombardier plants in Germany and Sweden with final assembly in India. Later, the Indian plants will take over almost full production. Bombardier is one of the first private companies chosen to build rail vehicles in India.
The 340 cars will form four-car trains with a capacity of 1,480 passengers each. Design is being done by Bombardier's engineering centre in Hyderabad, working with its Swedish plant. No details of contract financing were disclosed.
Bombardier says it is the world's leading supplier of subway trains. Its equipment is rolling in New York, Toronto, Paris, London, Berlin, Bucharest, Stockholm and Shanghai, as well as Montreal.
It was the first Western firm to build trains in China and it is a big supplier to Indian Railways.
"China, India and Russia, the world's fastest-growing economies, are opening up to foreigners - and Bombardier, Alstom and Siemens are moving right in," an industry analyst said. "Five years ago, those markets were mostly reserved for state-owned manufacturers. "