Bombardier in the lead for New Jersey rail deal
Plane and train manufacturer Bombardier is (reportedly) leading the pack in a New Jersey Transit (NJT) rail deal. The deal, which is for 999 new multilevel passenger cars “including options”, will be one of the largest contracts awarded in years (assuming the options are excised). If it gets the win, that’ll be a big boost for Bombardier, which has had a spate of ill fortune when it comes to delivery delays and orders lost to competitors.
Bombardier’s share price has stayed put over the last five days
Source: Yahoo Finance
Two sources, who are familiar with the matter but asked not to be named, broke the news last week, and added that CRRC Corp (the Chinese state rail company) had been in the running, but was eliminated early on. CRRC Corp and NJT did not respond to a request for comment, and Bombardier spokesman Eric Prud’Homme declined to comment over email, as the deal is an “ongoing procurement,” and the “agency has not awarded the contract yet.”
NJT is the US’s largest state-wide public transportation, and deals with over 900,000 daily passengers. But it’s come under fire recently, as an audit published in October concluded that its operations were “inefficient” and “unsustainable”.
One of the anonymous sources claimed that Bombardier has the advantage as NJT is a long-term customer, and suggested that a deal could be finalised as early as December. The final value of the deal is unknown as it depends how many options are excised by the agency.
Dominion holds Bombardier in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.