Alstom to build Metrolinx LRT cars in Toronto region

The French company whose light rail vehicles will replace Bombardier Transportation transit vehicles under a revised contract with Metrolinx is going ahead with a plan to build those vehicles in the Toronto region.

Alstom Canada spokeswoman Marilena Varano confirmed Thursday that her firm will establish a manufacturing plant in Brampton, Ont., to build future cars on the Sheppard East LRT and Finch West LRT projects in Toronto.

She initially said the project, which has not been formally announced, would create some 200 jobs but later revised that to 120 jobs. The firm already employs more than 300 Canadians at facilities in Ottawa and near Montreal.

Metrolinx — a provincial government agency in charge of transportation for the Greater Toronto and Hamilton Area — announced Thursday it will accept only 76 light rail vehicles of the 182 originally ordered for $770 million from Bombardier.

A source confirmed the new contract is worth $392 million.

Metrolinx CEO Phil Verster said the 106 Bombardier vehicles that were to be used on the two lines will be replaced by 61 larger cars bought through a $528-million deal signed last spring with Alstom.

Future cars on those lines will likely also be built by Alstom.

“We brought a second supplier into the market, which creates a totally different competitive dynamic and Alstom will now build vehicles right here in Toronto for Toronto on those projects,” he said. “And that’s very exciting for us.”

The Bombardier cars will now be used only on Toronto’s $5.3-billion Eglinton Crosstown project.

Metrolinx had previously asked a court for the right to cancel the contract with Bombardier over doubts about its ability to fulfil train orders in a city where gridlock has become an increasing frustration for commuters. But a judge said it couldn’t without first going through a dispute resolution process.

Metrolinx says its new deal with Bombardier includes harsher penalties if vehicles aren’t delivered on time or if the quality of the vehicles is unacceptable.

Verster said details of the penalties are confidential but confirmed his agency is liable to pay $500,000 per day to the consortium building the Eglinton Crosstown project if the cars are late.