Cancelling Bombardier order not an option, TTC says

‘We need the streetcars,’ chair says amid criticism over recall of 67 vehicles

The chair of the TTC board says the transit agency doesn’t have the “luxury” of cancelling its contract with Bombardier, despite repeated problems with the $1-billion order.

As the Star reported Tuesday, 67 of the 89 vehicles Bombardier has already built for the TTC will have to be shipped to Quebec to fix a welding defect.

Bombardier and the TTC both say the manufacturing flaw poses no danger to the public, and both parties will cooperate to minimize the recall’s effects on service.

“Through the quality testing that we have along the line, we found out this issue, and as a proactive measure, we’re doing the maintenance,” said Bombardier spokesperson Eric Prud’Homme. “We’re transparent about it, and we’ll assume every cost related to the repair program.”

The repair issue comes after years of Bombardier falling behind on delivery schedules on the order for 204 cars, and has prompted a fresh round of public criticism of the company.

In an interview Wednesday, TTC Chair Josh Colle said in light of the latest setback he understands “why people would want to never have anything to do with this company again.”

“But I don’t think cancellation of the existing order is an option. We need the streetcars, but I don’t think we have the luxury of the kind of delay that might bring.”

Colle, who represents Ward 15 Eglinton-Lawrence, predicted the weld repair issue could affect the board’s decision about whether to exercise an option in the Bombardier contract for additional cars, however.

The original deal, which the company and TTC inked in 2009, included a provision for the agency to order up to 100 extra vehicles from Bombardier.

The TTC has been considering buying 60 additional streetcars, at a cost of roughly $360 million.

Citing Bombardier’s production struggles, some members of the TTC board have advocated putting the order for 60 cars out to tender. According to a 2015 TTC report, the agency might be able to bar Bombardier from participating in the bid, if an agency evaluation determined the company had performed unsatisfactorily. Bombardier would have the right to appeal the evaluation, however, or create a plan to remedy outstanding problems. Prud’Homme, the Bombardier spokesperson, said the company has a long track record building trains for the TTC and GO Transit, and shouldn’t be judged solely from problems with the streetcar order. He said the company has invested to improve its production process and would be well positioned to deliver on a future TTC order.

“The product does perform and is appreciated,” he said. “In terms of pricing and timing of delivery it would be hard for anybody (else) to compete.”

Awarding the contract for additional cars to another company would carry significant risks, according to the TTC. A new manufacturer would have to design and build from scratch vehicles that would fit the agency’s specifications, and would take years longer to supply the cars.

According to a report going to the TTC board next Tuesday, the delay in getting new cars “would put significant strain” on the existing bus and streetcar fleet. Having two models of streetcar in operation would also increase the cost of maintenance, training and spare parts.

Rather than go back to Bom- bardier or select a new manufacturer, Colle suggested the TTC board could decide not to order additional streetcars after the initial purchase is complete. He predicted that would force the transit agency to replace streetcar service with buses on some lines as demand for transit downtown grows.

“If we ever limited our fleet at (roughly) 200, forget about who’s building them and assembling them, we couldn’t continue to serve all of the routes that we currently do,” he said. “I think the question is whether or not we need the streetcars, or could they just be replaced by buses, said TTC board member Councillor John Campbell. “I don’t know if there’s any point in adding to a fleet that obviously has some flaws.”

Using buses instead of streetcars would likely be more costly, however, because buses have less carrying capacity and require more drivers.

Councillor Joe Mihevc (Ward 21 St. Paul’s), another board member, argued the transit agency should stick with plans to enlarge its streetcar fleet after the initial Bombardier order. He said the contract for additional cars should be put out to tender, and Bombardier should be allowed to bid.

He said the company has been more successful at hitting delivery targets this year, and “if they show themselves able to deliver for the last months of 2018 and into 2019, then that bodes well for them being considered as a legitimate supplier.”

The company maintains that despite its production problems it will still be able to deliver all 204 vehicles by the agreed-upon deadline of the end of 2019.

The report going to the board next week recommends deferring the decision on the streetcar option until next year.