Bombardier wins Ontario order for 125 commuter rail cars

By Allison Lampert

MONTREAL (Reuters) - Bombardier Inc (BBDb.TO) has won an order for 125 commuter rail cars from an Ontario regional transportation agency, the company said on Tuesday, even as a separate order from the agency for light-rail vehicles has suffered delays.

The latest order from Metrolinx, the provincial agency in charge of transportation in and around Toronto, is valued at C$428 million ($327.29 million), with final delivery expected during the first quarter of 2020, the Montreal-based manufacturer said in a news release.

The 125 rail cars are options exercised from a 2013 contract for a total of 200 Bombardier bi-level heavy rail cars, a model that has historically been produced "on time," Metrolinx spokeswoman Anne Marie Aikins wrote in an email.

Bombardier last year began delivering the first 75 bi-level vehicles for Toronto's commuter rail system, the country's largest, said Bombardier spokesman Marc-Andre Lefebvre.

"We are delivering on time right now," he said. "Our actions are our word."

Metrolinx recently filed a notice of default against Bombardier for delayed delivery of the separate order of light-rail vehicles.

"We are confident the extent of manufacturing issues seen elsewhere will not occur during production of these bi-level coaches," said Metrolinx's Aikins.

Even so, the new order for the Greater Toronto Area's GO Transit commuter network was structured with lower upfront payments so Metrolinx would "assume less risk if quality standards or delivery schedules are not met," she wrote.

The heavy-rail coach cars are being produced in the company's plant in Thunder Bay, Ontario. Bombardier will add capacity in Thunder Bay to complete the contract, Lefebvre said.

Separately, Toronto's municipal transit authority has also complained about deliveries from Bombardier after delays in an order for streetcars.

Bombardier shares were up 0.5 percent at C$1.97 in Toronto.

(Editing by Jeffrey Hodgson and David Gregorio)