More info about the $1 Billion contract
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Thursday April 16, 2:26 pm Eastern Time
Company Press Release
Bombardier Selected For JFK Airport Light Rail System
ST. BRUNO, Quebec--(BUSINESS WIRE)--April 16, 1998-- (TSE:BBD.A. - news; ME:BBD.A. - news; TSE:BBD.B. -
news; ME:BBD.B. - news) The Board of Commissioners of the Port Authority of New York and New Jersey today
announced its decision to select the AirRail Transit Consortium, led by Skanska USA and Bombardier Transportation, for the
design, construction, operations and maintenance of the New York JFK International Airport Automated Light Rail System.
The contract is expected to be finalized within the next few weeks.
Under the ''Design-Build-Operate-Maintain'' (DBOM) approach, the Consortium is responsible for the turnkey design and
construction of the driverless light rail system, as well as for its operation for a period of up to 15 years.
The system which consists of 14 kilometers (8.4 miles) of predominantly elevated, double track guideway with 10 stations and
32 vehicles will move passengers between six terminals at John F. Kennedy International Airport and link the airport's Central
Terminal Area to regional inter-modal hubs at the Howard Beach Subway Station and Jamaica Transportation Center.
The total capital cost of the project is estimated at CAN $1.3 billion ($930 million US); in addition the Operation and
Maintenance (O & M) portion for the first 5-year period is worth CAN $150 million ($105 million US). The share of the
contract for Bombardier Transportation is valued at CAN $385 million ($285 million US) of which CAN $240 million ($ 180
million US) is dedicated to the transportation systems and the rolling stock. With the two additional five-year O & M options,
the overall project value for Bombardier Transportation would reach CAN $700 million ($500 million US).
The Bombardier Transportation mandate includes overall system design, engineering and integration, the supply of vehicles
powered by linear induction motors, train control, traction power, platform doors and communication system, system testing
and commissioning as well as operations and maintenance of the system.
This mandate will be executed by its Kingston, Ontario-based Transit Systems unit with the participation of Mass
Transit-North America's Kingston plant. These two units also built the Vancouver SkyTrain System and are currently delivering
the Kuala Lumpur LRT-2 System which will be in revenue service in September 1998.
The Construction Joint Venture composed of New York-based subsidiaries of Skanska USA along with Framingham,
MA-based Perini Corporation [AMEX:PCR - news] will be responsible for the design and construction of the civil works
including stations and maintenance facilities with design and engineering services provided by STV Inc., a New York transit
engineering firm.
Revenue service for the Central Terminal Area at JFK and the Howard Beach Subway Station is scheduled to start in April
2002. The Jamaica link will open approximately three months later.
Commenting on behalf of Bombardier Transportation, President and Chief Operating Officer Jean-Yves Leblanc said: ''We
are very pleased to participate in the renewal of the JFK International Airport. Winning the JFK Automated Light Rail project
confirms the technical superiority of our Advanced Rapid Transit technology in driverless steel wheel steel rail application.'' Mr.
Leblanc added: ''Following our involvement in the current and recent supply of the 680 subway cars for New York City's
MTA New York City Transit, the 18 high speed tilting trains for Amtrak's Northeast Corridor, the 99 commuter cars for NJ
Transit of New Jersey, the 50 commuter cars for the MTA Metro-North Railroad in New York, this project further enhances
Bombardier's continued presence and strong commitment to the New York and New Jersey areas.''
The world's second largest passenger rail car manufacturer and the first in North America, Bombardier Transportation is
responsible for all Bombardier's operations in the field of rail transportation equipment, offering a complete range of urban,
suburban and intercity vehicles as well as turnkey rail transit systems worldwide. In North America, its activities are carried out
by Mass Transit - North America and Transit Systems (Canada), Bombardier Transit Corporation (USA) and Concarril
(Mexico). In Europe, Bombardier Transportation operates manufacturing facilities in Austria, Belgium, Czech Republic,
France, Germany, Switzerland and the United Kingdom.
Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the field
of transportation equipment, aerospace and recreational products. It also provides financial services and services related to its
products and core competencies. The Montreal-based Corporation operates plants in Canada, the United States, Mexico,
Austria, Belgium, Czech Republic, Finland, France, Germany, Switzerland and the United Kingdom, employing 47,000 people.
Bombardier's revenues for its fiscal year ended January 31, 1997 totalled 8 billion Canadian dollars, and more than 85 percent
of its revenues are generated in markets outside Canada.
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STVI is also in volved in the Amtrak and NJ projects mentioned above.
This stock should definitely be trading much higher. This is a five year deal and STVI gets a healthy piece of the action !!!!
Amigo Mike |
