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Bombardier Consortium Wins Multi-billion Contract for Queensland New Generation Rollingstock Project

The Queensland Government today announced its order of 75 new six-car trains, maintenance services for a period of 30 years and the construction of a purpose-built maintenance centre under a 32-year public-private partnership. A consortium comprising rail technology leader Bombardier Transportation, John Laing, ITOCHU Corporation and Uberior will deliver the order. As previously communicated to the market on January 17, 2014, the total value of the contract is approximately 4.4 billion AUD (3.0 billion euro, $4.1 billion US) with Bombardier’s share valued at approximately 2.9 billion AUD (2.0 billion euro, $2.7 billion US).

The New Generation Rollingstock project will boost commuter services for the densely populated areas of South East Queensland and transport domestic and international tourists to some of Queensland’s world famous locations, including the beaches and theme parks of the Gold Coast. Bombardier’s scope for this project includes the supply of the 75 Electrical Multiple Units (EMUs) and maintenance for 30 years. The depot design and construction will be subcontracted to Laing O’Rourke.

Lutz Bertling, President and Chief Operating Officer, Bombardier Transportation, said: “Bombardier and its partners will deliver a new generation of high-performing and environmental-friendly commuter trains for Queenslanders to meet the region’s rising demand for rail services. Bombardier’s fleet maintenance will ensure that the new trains provide superior performance for the next 30 years, enabling Queensland Rail to continue to deliver reliable and cost-effective services for passengers enjoying a new standard of travelling environment.”

The new commuter trains are being designed and engineered in Australia and will be manufactured at Bombardier’s facility in Savli, India. The vehicle design is based on the Adelaide EMU train and the award-winning BOMBARDIER VLocitydesign, incorporating reliable and service proven technologies such as the BOMBARDIER FLEXX bogies and theBOMBARDIER MITRAC propulsion system. The new commuter trains will provide improved capacity, security and passenger flow and will feature the BOMBARDIER ORBIFLO advanced condition monitoring system to enhance vehicle reliability.

The project is being financed jointly by the public and private sector using an availability payment public-private partnership finance option, a similar model as successfully used for Australia’s Gold Coast Rapid Transit. The four consortium members are equity partners for the project. Macquarie Capital acted as financial adviser to the consortium.

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