Over the holidays, Metrolinx negotiated new contract terms with Bombardier, the transit agency responsible for producing light rail vehicles for Toronto’s Eglinton Crosstown light rail transit (LRT) system. According to a press statement, these new terms offer “significant financial penalties for Bombardier if they fail to deliver quality vehicles on-time.”
“This clearly resets the relationship with Metrolinx under its new leadership, and provides a clear path forward to ensure certainty on the technical and financial obligations of both partners,” a Bombardier press statement said.
Bombardier is contracted to manufacture 76 light rail vehicles, which is 106 less than the original contract for 182.
“We want our suppliers to succeed,” Metrolinx CEO Phil Verster said in a statement. “The new agreement provides compelling incentives for Bombardier to allocate the right resources and attention to the production of our Eglinton vehicles.”
The new agreement includes performance deadlines and a new late delivery penalty. Bombardier has also committed to be more transparent when it comes to production plans and progress, which means that Metrolinx will have the opportunity to address progress on a regular basis. Bombardier will ensure vehicle quality is sustained throughout the lifespan of the vehicles.
The GO Transit Operations and Maintenance contract was extended by 18-month.
In May, the provincial government signed a new agreement with Alstom Canada to provide vehicles that would be used on the Eglinton Crosstown. Alstom is still contracted to manufacture 61 cars, but they will be used on other transit lines such as Finch West LRT.
“We have always been resolved to find a clear negotiated path forward, one that delivers value to all parties, and foremost to the people of Ontario. Bombardier is fully committed to the Metrolinx project and to the people of the Greater Toronto Hamilton Area (GTHA),” said Benoit Brossoit, President, Americas Region at Bombardier Transport. “I look forward to working with Metrolinx’s CEO, Phil Verster’s, to advance this project and ensure that riders have the most efficient, comfortable and reliable transit system in the world.”