Saturday, September 29, 2012

Rail giants sign $367 million deal to develop Saudi railway system

Employees and guests tour a Bombardier LRV train at the manufacturing facilities in Toronto May 29, 2012. (Reuters)
Employees and guests tour a Bombardier LRV train at the manufacturing facilities in Toronto May 29, 2012. (Reuters)
Bombardier Transportation, the rail equipment division of the Canadian firm, Bombardier Inc., has signed a $367 million deal with Spanish-based Talgo SA to develop a high-speed railway system for Saudi Arabia by supplying parts for 36 trains.

Intercity passenger train manufacturer Talgo, a member of al-Shoula consortium, was recently contracted by the Saudi Railways Organization to build and run a 450 kilometer high-speed rail line connecting Mecca and Madina.

Bombardier has previously taken part in developing four different generations of the TGV in France, as well as the ICE trains in Germany and the Netherlands.

The world's largest train maker said the deal is likely to include propulsion and control packages and high-speed bogies.

The technology to be used is similar to the 46 AVE 102 and AVE 112 trains created for Spanish railway operator, RENFE between 2001 and 2010. The majority of the project will be manufactured in Bombardier’s factory in Trapaga, Spain.

It anticipates transporting 3 million commuters per year.

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