Canada-based Bombardier Inc. (BBD-B.TO, BBD-A.TO) said Tuesday that Bombardier Transportation signed a contract with Berlin's transport operator Berliner Verkehrsbetriebe, or BVG, for 99 Bombardier Flexity Berlin trams. The order is valued at around 300 million euros, or US$431 million.
Bombardier said that BVG's supervisory board has approved the order on June 29. The order includes 40 long and 24 short one-way vehicles as well as 35 short bidirectional vehicles trams. The order also follows a framework agreement for a maximum of 210 vehicles in 2006.
The new trams will be produced at Bombardier's sites in Germany, the company said. Body shell, final assembly and commissioning will be done at Bautzen and Hennigsdorf. Electronic works and bogies will be made at Mannheim and Siegen, respectively.
According to Bombardier, the first vehicles will be delivered in May 2011, with an expected completion date for all vehicles in 2017. This will coincide with the deployment of the GT6 series vehicles and the phasing-out of the Tatra high-floor vehicles. The Flexity Berlin trams will be well prepared for future applications and will be 100% barrier-free, the company noted.
There are 237 Tatra vehicles currently in service. These were modernized between 1994 and 1997 to be used for another 16 years. They will reach the end of their permitted operation at the start of 2010. These trams will no longer be suitable for use without additional costly renovations, the company said.
Generally, two Tatra vehicles can be replaced by one new tram in up to four different versions of the Flexity Berlin. In addition, BVG plans an order for 2010 comprising a further 33 anticipated vehicles.
Commenting on the contract, Andreas Sturmowski, Chairman of the Management Board of the BVG, stated, "This will result in lower operating costs and will further enhance the attractiveness of trams as a form of transportation for our passengers. We would especially like to thank the state of Berlin for assuming the financing defined within the framework of the transportation agreement."
Further, Bombardier said that the order for long bidirectional vehicles, which have not yet been included in the 99 vehicles, depends on decisions to be made by the state of Berlin regarding the development of the track network for the tram.
BBD-B.TO closed Monday's trading at C$4 on the TSX, down C$0.06, on a volume of 4.26 million shares.
BBD-A.TO dropped C$0.09, and closed Monday's trading at C$3.97, on a volume of 77,900 shares.
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