Boston Herald

The MBTA’S $870.5M contract with China’s CRRC

- By Gayla Cawley gcawley@bostonhera­ld.com

Even before the MBTA inked its then roughly $566 million deal with low bidder CRRC MA in 2014 to produce new Orange and Red Line trains, concerns were already being raised.

Critics pointed to the Chinese-state-owned company significan­tly underbiddi­ng its competitor­s and its ties to the Communist Party, with some even asserting there was the potential for spyware installati­on in trains.

Still, the contract was extended in 2017, before the first new rail car shells arrived for assembly at CRRC’s $95 million factory in Springfiel­d.

Flash forward to today, and the new cars have been taken out of service multiple times for various mechanical defects and final delivery deadlines have been pushed beyond 2026, already three years later than the contractua­lly required dates. Here is the timeline of the contract:

December 2014

Under Gov. Deval Patrick, Chinese state-owned company CRRC MA, then known as CNC MA, was awarded a $565.18 million contract to design and manufactur­e 152 Orange and 132 Red Line subway cars for the MBTA, coming in roughly $155.5 million lower than the bid above it.

September 2015

CRRC breaks ground on a new $95 million railcar manufactur­ing facility in Springfiel­d.

Winter 2017

CRRC Springfiel­d manufactur­ing facility constructi­on is completed.

January 2017

Under Gov. Charlie Baker, the MBTA expands the contract, ordering an additional 120 Red Line cars for $249 million, bringing the total order to 404 rail cars. The contract now stands at $870.5 million, when factoring in a $56.3 million change order.

April 2018

First rail car shells arrive at the CRRC Springfiel­d facility for assembly.

December 2018

First pair of new Orange Line cars are finished at the Springfiel­d factory.

June 2018

Under President Donald Trump, the United States Trade Representa­tive increased existing tariffs on Chinese goods to 25%, which impacts large portions of the cars that CRRC sources in China. The company has asked for relief from the MBTA on these tariffs, which it says stand at $18 million and are expected to grow to $35 million by the end of the contract.

August 2019

MBTA introduces the first new Orange Line train into service, with six CRRCbuilt cars.

December 2019

MBTA pulls new Orange Line trains due to what it described as an uncommon noise issue.

December 2019

Under Trump, Congress passes the National Defense Authorizat­ion Act for Fiscal Year 2020, which bans mass transit agencies from using federal funds for the purchase of rail cars and buses from Chinese-owned companies. CRRC is grandfathe­red in and permitted to continue doing business with its current U.S. contracts — MBTA in Boston, SEPTA in Philadelph­ia and LA Metro — and compete for new rail car contracts for a two-year grace period, with the exception of Washington, D.C. This House amendment included in the final bill was introduced by U.S. Rep. Richard Neal, a Massachuse­tts Democrat who represents Springfiel­d.

March 2020

New Orange Line trains are taken out of service after MBTA inspectors find fault with the vehicle bolsters.

March 2021

New Orange and Red Line trains are taken out of service after a new two-car train set is involved in a derailment.

June 2021

The CRRC plant in Springfiel­d takes on additional work: assembly for a $647 million contract with LA Metro.

January 2022

CRRC was contractua­lly required to deliver all 152 Orange Line cars by the end of this month. To date, 78 Orange Line cars have been delivered.

May 2022

MBTA pulls new Orange and Red Line trains from service after a breakdown at Wellington station. The T later says a train became disabled because a bolt was improperly installed in a car’s braking unit.

June 2022

MBTA pulls new Orange and Red Line trains after a battery failure in an out-ofservice Orange Line car. T later says the failure was a battery explosion.

July 2022

All Orange and Red Line car shipments are suspended to address manufactur­ing-related defects identified by the MBTA.

September 2022

MBTA starts to scrap old Orange Line trains to make room for the new fleet.

November 2022

CRRC halts Red Line car shell production due to a surplus of car shells currently stored in Springfiel­d. Fourteen of 44 produced Red Line shells are in storage at the facility. All 152 Orange Line shells have been produced, with 26 housed in Springfiel­d.

December 2022

MBTA cuts service on the Orange Line and pulls new trains, after mechanical failures were found in nine CRRC cars. The T later says that faulty design and ill-fitting materials are to blame. This same month, the MBTA sends a scathing letter to CRRC, describing the Chinese company’s failure to produce quality trains and meet delivery deadlines.

January 2023

MBTA Interim General Manager Jeffrey Gonneville tells the T’s board of directors CRRC won’t be able to meet the extended deadlines it requested in the fall, of December 2023 and September 2026 for Orange and Red Line cars.

February 2023

Gov. Maura Healey says she directed the MBTA to form an independen­t team

of experts to stamp out problems hindering the procuremen­t of the new cars. Transporta­tion Secretary Gina Fiandaca visits the Springfiel­d factory, part of what Healey describes as her administra­tion’s intent to have a continued physical presence there. This will mainly be through the newly assembled consulting group.

February 2023

Rail car shipments resume, with the MBTA expecting to take delivery of four cars per month, half of the contractua­lly-required eight cars per month.

September 2023

CRRC was contractua­lly required to deliver all 252 Red Line cars by the end of this month. To date, 12 Red Line cars have been delivered.

December 2023

CRRC’s extended deadline for Orange Line car delivery that the MBTA GM says the company will no longer be able to meet.

September 2026

CRRC’s extended deadline for Red Line car delivery that the MBTA GM says the company will no longer be able to meet.

 ?? STUART CAHILL — BOSTON HERALD ?? A Chinese flag flies alongside a USA one at the CRRC manufactur­ing facility in East Springfiel­d on Oct. 7, 2020.
STUART CAHILL — BOSTON HERALD A Chinese flag flies alongside a USA one at the CRRC manufactur­ing facility in East Springfiel­d on Oct. 7, 2020.

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