Bombardier gets $428 million deal from Ontario transportation agency

While their planes have been making the headlines as of late, it’s a banner day for Bombardier’s ground transportation division as they secure an order from Metrolinx, the Greater Toronto and Hamilton Area’s transportation agency.

The deal, valued at approximately $428 million, will see 125 next-generation double deck rail cars added to the GO Transit fleet in early 2020, according to a press release.

“This is exciting news for Bombardier and our region,” said Michael Gravelle, MPP for Thunder Bay-Superior North, where the Bombardier (BBDb.TO) plant is located and where construction of the commuter cars will take place.

“Instruments like this, will create jobs and keep people right here in Thunder Bay working and our community strong for years to come.”

The news comes just months after Bombardier laid off 60 employees at its Thunder Bay plant in May.

The same plant has been responsible for the construction of the new Toronto Transit Commission (TTC) streetcars, which have been a recent point of contention. Bombardier has a production deadline of 204 streetcars to be delivered to the City of Toronto by the end of 2019.

The 2012 deal promised to deliver 73 new streetcars by the end of 2015, but as of June, according to The Star, only 22 have been received.

Production of the new Metrolinx rail cars will begin in Thunder Bay in Q2 2018.

Metrolinx exercised its purchase option for the new rail cars in December, but the deal was not made public until now as the two companies worked out details.

No information has been made public yet on whether the new order will affect the production of TTC streetcars at the Thunder Bay plant, or whether Bombardier will be hiring new staff for the increased order volume.