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(The Montreal Gazette published the following story by Nicolas Van Praet on its website on July 16.)

MONTREAL — Alstom Canada Inc., best known in Quebec for its train-building yards in Point St. Charles, has replaced its chief executive officer.

The move comes as the Agence Métropolitaine de Transport has asked for an extension until the end of August to review a lucrative commuter-rail contract that industry sources say was slated to go to Alstom.

Pierre Gauthier, formerly the president of Alstom’s power unit, has taken over from Pierre Martin as chief executive of Canadian operations.

The executive switch could be indicative of the strength of Alstom’s power division in Canada compared with its struggling transportation unit.

“The relative weight of Alstom’s activities comes into play,” said Jean-Georges Micol, director of communications for the French-based conglomerate.

Micol said Alstom’s new executive system was also a factor in the swap of bosses.

Through the system, country presidents have to hold operational responsibilities in one of the company’s business units. So for example, the new head of Alstom’s German operations is also the head of Alstom’s German energy-production unit.

Martin never held an operational role. He will remain on Alstom Canada’s board of directors and assist the company as a special adviser.

Alstom is known for its rail and shipbuilding as well as its power-generation systems and products. The firm is very active in Canada on the power side, recently winning a contract worth

$45 million to supply a turbine-generator set at the Brilliant Expansion hydroelectric power plant on B.C.’s Kootenay River.

Its Canadian transportation business, however, has suffered.

Alstom’s Point St. Charles train-building yard, once a transportation powerhouse with 800 workers rebuilding freight locomotives, is only a shadow of its former self. The plant has refocused on the passenger-rail market.

About 150 workers there are rebuilding trains for Alstom’s Rolling Stock Americas division as they wait for the company to bag some Canadian contracts. Another 450 workers are on call.

Everyone has been waiting for months for the Quebec government to announce which company, Alstom or Bombardier, is the winner of a contract worth $66 million to build 40 commuter-rail cars for Montreal’s transit authority. Quebec is financing 75 per cent of the deal.

The AMT has already provided Transport Minister Yvon Marcoux with its recommendation to award the contract to Alstom, sources indicated yesterday. AMT officials did not return repeated calls.