Chinese firm wins $1.3b US railcar deal

846 unit order to cut Chicago's maintenance bill by $7m annually

CSR Sifang America, a subsidiary of China Railway Rolling Stock Corp, has been awarded a $1.3 billion order to supply up to 846 railcars to the Chicago Transit Authority, the biggest train order in the city's history.

The new cars, from the 7000-series, will look similar to those that have been in operation since the 1980s, the 2600-series, and will be locally assembled at a purpose-built plant.

CTA spokesman Brian Steele says the contract is expected to create around 169 jobs, including mechanical engineers and electricians.

CSR Sifang America is a joint venture between CRRC Qingdao Sifang Co Ltd, based in eastern China, and CSR America, based in Chicago.

Another CRRC subsidiary is also building railway vehicles in Springfield, Massachusetts, after sealing a deal with the local transport authorities to supply 284 railcars for the Boston transit system.

The last railcars ordered by CTA, the 5000-series, was a decade ago with Canada's Bombardier Inc, which lost out in the bidding this time by around $226 million, according to officials.

CTA started the process in 2013, but the bidding garnered little interest and a revised tender was launched in 2014.

The prototype railcars are scheduled for delivery to the CTA in 2019 and will go into service the next year. The base order of more than 400 railcars will arrive by 2024, with options for a further 446 vehicles.

Steele says the purchase, which will replace about half of its railcars, will give the city one of the youngest rail fleets in the United States, with the average age of a railcar dropping from 26 years in 2011 to 13 years once the order is delivered, as well as save $7 million a year in maintenance costs.

CRRC Qingdao Sifang says the 7000-series railcars will have a different seating arrangement in comparison with the Bombardier ones, which have mostly aisle-facing seats, and would provide more standing room during rush hour.

The new vehicles can be run at 112 kilometers an hour and will be equipped with LED lighting, passenger information systems and air conditioners.

Wang Mengshu, deputy chief engineer of China Railway Tunnel Group Ltd, hailed the new deal as "another major breakthrough for the Chinese railway industry in the North American market".

Contact the writers at zhongnan@chinadaily.com.cn and xiechuanjiao@chinadaily.com.cn

(China Daily Africa Weekly 03/18/2016 page27)