CRRC unit wins contract in Philadelphia

CRRC is on a roll when it comes to securing railcar contracts in the US.

In Philadelphia on Thursday, the board of the Southeastern Pennsylvania Transit Authority (SEPTA) approved the purchase of 45 multi-level coaches from the Chinese train giant's subsidiary, CRRC MA, for its Regional Rail network.

The contract award was based on technical rating and pricing, said the authority, with CRRC's proposal offering the best value. The multi-level coaches will meet "Buy America" requirements, with 60 percent or more of the parts, labor and fabrication done in the US.

"This contract award allows SEPTA to advance a major service-improvement initiative at a cost that fits within our budget constraints," SEPTA Board Chairman Pasquale T. Deon Sr. said in a statement.

"SEPTA's Regional Rail ridership has grown by more than 50 percent over the last 15 years," said SEPTA General Manager Jeffrey D. Knueppel. "The addition of new multi-level coaches and electric locomotives are critical for expanding capacity and meeting the needs of our riders. These fleet upgrades will play a key role in advancing SEPTA's Regional Rail Service Improvement Program."

CRRC MA came in with a low bid of $137.5 million, easily besting competitors Bombardier of Canada, which bid $171.5 million, and Hyundai Rotem ($187.8 million) of South Korea.

CRRC MA's deal includes an option for 10 more cars, which, if exercised, would result in the contract's value rising to $161 million, still below the base bids by Bombardier and Hyundai Rotem.

The first of the coaches are expected to be delivered in late 2019. They will be paired with SEPTA's new electric locomotives, which are being built by Siemens of Germany.

The multi-level coaches will be produced at CRRC MA's main US manufacturing facility in Springfield, Massachusetts.

It is the latest win for CRRC. Last week, CRRC Sifang America broke ground in Chicago for a $100 million plant that will build cars for the city's transit authority.

In 2015, construction began on the $95 million plant in Massachusetts to build rail cars for Boston's transit authority. That plant is scheduled for completion this year, and the first cars are expected to be delivered to Boston in 2018.

CRRC was formed in 2015 by the merger of China's top two high-speed rail makers China North Railway (CNR) and China South Railway (CSR).

Paul Welitzkin in New York contributed to this story.

williamhennelly@chinadailyusa.com