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3/17/2004



Rail News: Rail Industry Trends

Amtrak settles Acela lawsuit with Bombardier/ALSTOM consortium


Amtrak and a Bombardier Transportation/ALSTOM Transport consortium recently settled lawsuits pertaining to high-speed Acela Express service.

In November 2001, Bombardier filed a lawsuit against the national passenger railroad seeking damages in connection with the consortium’s $1.2 billion contract, which included building, delivering and maintaining 20 Acela Express trainsets for 10 years, supplying 15 additional high-speed electric locomotives, and constructing three new maintenance facilities. Amtrak then countersued for damages.

The parties have agreed to drop all claims relating to the program and enable the consortium to receive up to $42.5 million of the $70 million Amtrak previously withheld. The agreement also amends the maintenance services contract for the trainsets, pushing up the date to transfer maintenance responsibility from the Northeast Corridor Maintenance Service Co. (NECMSC) to Amtrak in 2006. Amtrak previously would have assumed responsibility in 2013.

During the transition period, NECMSC will train Amtrak employees to perform maintenance work. After 2006, the consortium will continue to provide equipment parts and technical advice to Amtrak mechanics as needed.


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