Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.




railPrime
View Current Digital Issue »


RAIL EMPLOYMENT & NOTICES



Rail News Home Passenger Rail

11/8/2013



Rail News: Passenger Rail

Newspaper report: Talgo files $65.9 million claim against Wisconsin


advertisement

Spanish train-maker Talgo Inc. filed a $65.9 million claim against the state of Wisconsin over train sets the manufacturer built for the state but that the state never took possession of, according to a report posted yesterday on the Milwaukee Journal Sentinel website.

In a filing with the state's Claims Board, the company also maintained that Wisconsin owes bond holders an additional $70 million that the state borrowed for the train sets, which were built for use on the existing Milwaukee-to-Chicago Hiawatha passenger-rail line, as well as for a proposed high-speed rail line between Milwaukee and Madison that eventually could have extended to Minneapolis, the newspaper reported.

Talgo's request for more dollars is in addition to $40 million the state has paid the company, the article stated.

The Talgo-Wisconsin dispute stems from Wisconsin Gov. Scott Walker's rejection of $810 million in federal stimulus dollars for the high-speed rail line. He rejected the funds after previous Gov. Jim Doyle's administration signed a contract with Talgo to build the train sets. After the trains were built, the state declined to take possession of them.

In total, Talgo is seeking $65.9 million from the Wisconsin Department of Transportation, including $18.6 million in unpaid invoices and interest, $23.5 million in lost business, $10.5 million in damage by officials "continually defaming" Talgo's reputation and $9.8 million in lost maintenance work, according to the article.



Contact Progressive Railroading editorial staff.

More News from 11/8/2013