A Via Rail employee climbs aboard a locomotive at the train station in Ottawa on December 3, 2012. THE CANADIAN PRESS/Adrian Wyld

Via Rail places $989-million train order with Siemens for key rail corridor

MONTREAL — Via Rail has selected Siemens over Bombardier Inc. for a $989-million contract to modernize its passenger rail service along Canada’s key rail corridor between Quebec City and Windsor, Ont.

However, the German manufacturer could receive up to about $500 million more from the state-owned railway if it exercises options for another 16 trains on top of the 32 awarded Wednesday.

The increased order could take place if the federal government approves Via Rail’s plan to add frequencies between Quebec City and Toronto, said chief executive Yves Desjardins-Siciliano.

It expects Ottawa will announce a decision next year on the project that includes a rail network dedicated to passenger traffic.

Under the contract that doesn’t require any local content, Siemens will build the trains at its North American headquarters in California.

The new trains that will maintain Via Rail’s capacity of 9,100 seats should enter into service in 2022 with deliveries staggered until 2024.

Via Rail and Siemens also announced a 15-year technical services and parts agreement valued at $355.5 million.

Rumours of Via Rail’s decision not to select Bombardier have provoked resentment in Quebec where Bombardier is struggling to fill the order book at its La Pocatiere plant.

In a press conference, Siciliano repeated the arguments previously made by federal Transport Minister Marc Garneau that the decision to bypass Bombardier is justified because Canada’s free trade agreements with the European Union and the United States don’t allow Via Rail to favour Bombardier in the awarding of contracts.

He said Via Rail couldn’t consider economic benefits in its evaluation of tender bids.

“The opinions of our experts were that Via Rail is named in these (free trade) agreements and is prohibited from demanding Canadian content,” he told reporters. “We have complied with the rules. “

Siemens has opened the door to offer up to 20 per cent of the value of contracts announced Wednesday to Canadian subcontractors but there is no guarantee they will be selected from bids submitted.

A disappointed Bombardier Transportation said in a statement that it is “inconceivable” that a contract for a train that will pass “two national capitals” does not generate a maximum of local benefits.

It claimed that Via Rail twice refused to consider a revised proposal.

“This offer was supported by the Quebec government, had increased local economic benefits, and included the use of green technologies,” said Bombardier. “We will take the time necessary to analyze the Via Rail process and its decisions, and evaluate our options.”

Just Posted

Red Deer woman lives 102 years with humour, ‘gentle strength’ — and porridge

Minnie Deibert was surrounded by family and friends at her birthday party Sunday

Boy escapes serious injury after falling from third-storey window

SURREY, B.C. — A little boy is very lucky to have escaped… Continue reading

Harmonic singing for young women will be taught at a fall workshop in Red Deer

The Hearts of Harmony Chorus is presenting the Nov. 16 session

‘Crying out for help:’ Calgary radicalization program evolves to help others

CALGARY — The soft-spoken young man wasn’t being recruited by neo-Nazis or… Continue reading

Victoria pledges to plant 5,000 trees as part of United Nations challenge

Victoria is promising to plant 5,000 trees on public and private land… Continue reading

Your community calendar

Tuesday Bower Place Community Association Seniors Card and Coffee party at 1:30… Continue reading

Liberals pitch middle-class savings as second full week of campaign beckons

OTTAWA — The Liberals tried to turn the page on Justin Trudeau’s… Continue reading

Democrats blast latest Trump crisis. But what will they do?

WASHINGTON — A whistleblower’s complaint over President Donald Trump’s interactions with a… Continue reading

Face transplant recipient’s donor face now failing

MANCHESTER, N.H. — A woman who was severely burned in a domestic… Continue reading

Charity boat with 182 migrants waits to dock in Europe

A non-profit-run ship carrying 182 migrants rescued on the Mediterranean Sea sailed… Continue reading

Singh-Trudeau meeting will be private, say Liberals, but no time set yet

OTTAWA — The Liberal Party pledged Saturday to keep private the details… Continue reading

Glen Assoun calls for reform in how Ottawa considers cases of wrongful conviction

HALIFAX — Tethered to an ankle monitor and alone in a British… Continue reading

No winning ticket for Saturday nights $9 million Lotto 649 jackpot

TORONTO — There was no winning ticket for the $9 million jackpot… Continue reading

Most Read