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Rail News: Passenger Rail

Canadian bill would enable SMT to buy subway cars from Bombardier-Alstom consortium


Yesterday, Canadian and Quebec officials announced they plan to introduce a bill to the National Assembly that would conclude a contract between Société de transport de Montréal (SMT) and a Bombardier Transportation-Alstom consortium for the acquisition of about 500 passenger cars.

Because the Montreal agency’s cars have reached their useful life and the first attempt to renew the cars dates back 52 months, the “measure is appropriate,” federal and provincial officials said in a prepared statement.

“The goal of our government is to maximize economic benefits for Quebec and to ensure that Quebec taxpayers will pay a fair price for the renewal of subway cars,” they said.

The conclusion of an agreement between SMT and the consortium is the “best alternative” and would hasten delivery of the first cars, the officials believe.

“Much ink has been spilled on this issue and too much time has passed,” they said. “Now, we must produce and deliver these subway cars.”

Purchases made by transportation companies are exempt from Canadian rules governing international trade. As a single supplier, the consortium is not covered by applicable business laws and agreements, according to the government officials.

Contact Progressive Railroading editorial staff.

More News from 10/6/2010