Via Rail places train order with Siemens

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 16 more 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, chief executive Yves Desjardins-Siciliano said. It expects Ottawa will announce a decision next year on the project that includes a rail network dedicated to passenger traffic.

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

The new trains will maintain Via Rail’s capacity of 9,100 seats and 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 i n Quebec where Bombardier is struggling to fill the order book at its La Pocatière plant.

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