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RAIL EMPLOYMENT & NOTICES



Rail News Home Passenger Rail

1/27/2009



Rail News: Passenger Rail

Metro-North, LIRR to jointly purchase train parts


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In an effort to reduce costs in light of a huge New York Metropolitan Transportation Authority (MTA) budget deficit, MTA Metro-North Railroad and MTA Long Island Rail Road (LIRR) plan to enter into joint purchase agreements with manufacturers of common train parts.   

Under the five-year agreements — totaling $256.7 million — the railroads will contract seven original equipment manufacturers to provide parts for heating/air conditioning systems, electrical systems, toilets, couplers, trucks, brakes and doors. Metro-North and LIRR expect the agreements to save up to 3 percent in administrative costs and provide economic benefits, such as better pricing and volume discounts.

The agreements will enable the railroads to reallocate funds as needed to ensure enough parts are available. Metro-North and LIRR can vary the dollar amounts allocated for individual agreements by up to 15 percent, as long as the total doesn't exceed $256.7 million.

The MTA board now will consider the agreements.


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