MONTREAL — Bombardier Inc.’s transport division has won a British contract to build 127 diesel-electric rail car systems that could generate nearly $1-billion in revenue for the global passenger train maker, a wire service reports.
The value of the contract, which also includes an initial four-year maintenance portion, is worth about $512-million, rising to a potential $962-million if the maintenance services portion is extended to its maximum of 15 years.
The company will begin delivering the rail systems in the second quarter of 2004, with completion of the order by January, 2005.
The trains can hit speeds of 200 kilometres an hour and will be operated by Britain’s Midland Mainline railway for regional service.
Midland Mainline is owned by National Express Group, a global rail and bus operator. Financing for the contract is being provided by HSBC Rail (U.K.) Ltd., part of HSBC Group, one of the world’s biggest banks, which will lease the trains to Midland Mainline.
The diesel-electric trains will be built at Wakefield, in the United Kingdom, and Bruges, Belgium.
Bombardier is one of Canada’s major industrial companies, with 79,000 employees around the world building aircraft, recreational vehicles and rail equipment.