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Bombardier Confirms 3 Year East Midlands Railway Contract

  • New contract reaffirms long-standing relationships with Abellio and with Eversholt Rail
  • Derby Etches Park depot to maintain Bombardier Class 222s for East Midlands Railway mainline services until 2022

Rail technology leader Bombardier Transportation has announced today that it has signed a new Train Services Agreement (TSA) with Abellio and Eversholt Rail for the new East Midlands Railway franchise in the United Kingdom. Under the new agreement which lasts from today until December 31, 2022, Bombardier will maintain Bombardier class 222 diesel-electric multiple unit (DEMU) trains at Derby Etches Park depot for use on East Midlands Railway mainline services. The new agreement follows Bombardier’s previous role in maintaining the 125 miles per hour trains for the former East Midlands Trains franchise. The contract is valued at approximately £133 million GBP ($161 million US, €145 million euro).

Phil Hufton, President, Bombardier Transportation UK said, “We are delighted that we have reached agreement with Abellio to maintain the Class 222 fleet for East Midlands Railway’s mainline services. This important contract win is testament to our team at Derby Etches Park and their hard work and professionalism in continually delivering one of the highest performing and most reliable Intercity fleets.”

Steve Timothy, Client Relations Director, Eversholt Rail said, “We are pleased to be working in partnership with Bombardier Transportation to support the delivery of our Class 222 trains for the Sheffield – London mainline service to Abellio East Midlands Railway from 19th August”.

Under the Train Services Agreement, maintenance of the 27-strong fleet of Class 222 trains will take place at Derby Etches Park depot, where 130 staff are employed, with heavy component maintenance taking place at Bombardier Crewe.

Bombardier, Orascom, and Arab Contractors Win Egypt Monorail Contract

Bombardier Transportation, Orascom Construction PLC and Arab Contractors have signed an agreement today with National Authority for Tunnels in Cairo to design and build two new monorail lines in Egypt. On completion of the construction phase, the consortium will be responsible for the Operation and Maintenance (O&M) of both lines for 30 years. The total value of the design, build and O&M contract exceeds $4.5 billion US (4.1 billion euro). Bombardier Transportation´s share is $2.85 billion US (2.6 billion euro). Orascom Construction’s share of the overall contract is close to $900 million US. The agreement is subject to final signatures of supplementary documents.

Danny Di Perna, President of Bombardier Transportation, said, “To be selected as the monorail system supplier in Egypt is a great privilege and our fully-automated monorail system is the smart mobility solution for Cairo’s urban future.” He added, “Our INNOVIA Monorail 300 technology has proved to be a game changer in the industry, as it allows fast construction of high capacity transit lines at lower costs. With its advanced technology, unmatched safety features and attractive aerodynamic design, this proven platform will dramatically improve the quality of life for millions of residents by significantly reducing their daily commuting time as well as reducing traffic congestion and its impact on the city.”

H.E. Dr. Moustafa Madbouly, Prime Minister of the Arab Republic of Egypt, Danny Di Perna, President of Bombardier Transportation, H.E. Abelfattah Elsisi , President of the Arab Republic of Egypt, H.E. Kamel ElWazir, Minister of Transportation, Oscar Vazquez – President GROW Region Bombardier Transportation and H.E. Dr Assem Elgazzar, Minister of Housing, Utilities and New Urban Communities

Orascom Construction will design and build all infrastructure and civil works, including stations, guideway structures and new depot buildings.

Bombardier will design, supply and install the electrical and mechanical (E&M) equipment for the two lines including 70 four-car BOMBARDIER INNOVIA Monorail 300 trains (280 cars), BOMBARDIER CITYFLO 650 signalling and automatic train control technology, the Operation Control Centre, communication systems, platform screen doors and fare collection, power supply / power distribution systems as well as switch beams and depot equipment. It will also provide the overall E&M system integration, project management, systems engineering and integration, test and commissioning for the trains and signalling as well as operations and maintenance of the vehicles and wayside systems.

Monorail systems are perfect for congested cities needing a fast and cost-effective to build mass transit solution and the INNOVIA Monorail 300 system provides flagship performance in driverless operations. The compact, elevated system enables easy urban integration into existing infrastructure, and its iconic aesthetics and attractive infrastructure will help to shape Cairo’s identity as a modern thriving city.

Bombardier Delivers Final B-series Trains to Perth, Australia

  • Bombardier has supplied and maintained 78 B-series Electric Multiple Units over the last 15 years for Western Australia’s Public Transport Authority (PTA) in a joint venture with Downer EDI

Mobility solution provider Bombardier Transportation announced today that its Australian joint venture with Downer EDI, known as EDI Rail Bombardier Transportation Pty Ltd, is celebrating the final delivery of the B-Series Electric Multiple Unit trains for Western Australia’s Public Transport Authority (PTA). This occasion, which relates to the contract signed in 2016 for 30 additional railcars, was commemorated with an acceptance ceremony for the final train at the Nowergup Rail Depot which was attended by Rita Saffioti, Minister of Transport, Planning and Lands, Western Australia and Elwyn Gearon, General Manager, Transperth Train Operations.

Wendy McMillan, President, South East Asia and Australia region said, “We are very proud to complete the delivery of the B-Series EMU train fleet to the full satisfaction of PTA and providing a comfortable and reliable transport solution for over 60 million commuters every year.” She added, “Bombardier and PTA have worked together for over 30 years and we will continue as long-term partners on local initiatives including development of skilled and sustainable jobs, building a strategic supplier base, enhancing engineering capabilities and offering new technologies and expertise to the important Western Australia mobility ecosystem.”

The 15-year journey for Perth’s B-series train sets included the design, assembly and maintenance by the Bombardier Joint Venture (JV) in Australia. The trains have been manufactured at Downer’s facility in Maryborough, Queensland, with electrical pre-assembly work undertaken by Bombardier at its Australian manufacturing facility in Dandenong, Victoria. With an initial order of 31 three car trainsets, the first train entered service in 2004 and the final delivery will now see a total of 78 EMU trains in service. The Bombardier JV will also continue to provide Fleet Maintenance services to PTA for Transperth’s A- and B- series train fleets until 2026 and employ over 130 people across three sites including Nowergup, which manages the maintenance of the entire B-Series fleet.

The B- series EMU platform has been locally designed by Bombardier in Australia. This latest delivery adds to the more than 1,200-strong EMU vehicle fleet of various designs already operating at high reliability and availability delivered across Queensland, Victoria, South Australia and Western Australia by Bombardier over the past 40 years.

Bombardier has been investing in Australia for more than 70 years. As a trusted rail industry partner with over 1,000 employees, Bombardier designs, engineers, manufactures and maintains rolling stock across Australia, along with providing signalling, rail equipment, asset management and through-life support to customers and operators.

About Bombardier Transportation

Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services. Combining technology and performance with empathy, Bombardier Transportation continuously breaks new ground in sustainable mobility by providing integrated solutions that create substantial benefits for operators, passengers and the environment. Headquartered in Berlin, Germany, Bombardier Transportation employs around 40,650 people and its products and services operate in over 60 countries.

Bombardier to Provide 74 Additional Coaches to Israel Railways

  • Seventh consecutive order will increase Israel Railways’ fleet of Bombardier-built double-deck TWINDEXX Vario coaches to 586

Mobility solution provider Bombardier Transportation has signed a contract to provide 74 additional BOMBARDIER TWINDEXX Vario double-deck coaches to Israel Railways (ISR). This call-off is part of a framework agreement signed in October 2010 and is valued at approximately 147 million euro ($166 million US). Delivery of the new coaches is scheduled to be completed by December 2021.

Michael Fohrer, President Central and Eastern Europe and Israel at Bombardier Transportation said, “We are very proud to have signed a seventh consecutive order with Israel Railways, a result of exemplary collaboration and customer intimacy. It is testimony to the superior quality and reliable performance in customer service of all coaches delivered up to this point.”

Eran Cohen, Chief Country Representative Israel at Bombardier Transportation, said, “Sustainability over the entire lifecycle, safety, reliability, higher capacity and performance; those are the ingredients that make our double-deck TWINDEXX Vario trains so successful. We are grateful that Israel Railways has once more decided to put their trust into this well-proven product and the team behind it.”

“This order will strengthen and also benefit from the ongoing transformation of our two sites in Saxony, Germany,” added Michael Fohrer. “Görlitz, as the competence center for carbody production, and Bautzen, as our industrial lead site for serial production, will decisively contribute to the successful execution of this order. In addition, we will continue progressively developing our local supply base and the railway industry in Israel, in particular through the increased involvement of our final assembly site of M.T.R. Dimona, Israel.”

The new order consists of eleven control cars for operation with TRAXX electric locomotives, also compatible with diesel locomotives, eleven intermediate coaches with dedicated space for people with reduced mobility and 52 trailer cars. Additionally, the driver’s desk in the control car will be re-designed to be identical to one in the TRAXX electric locomotives.

This single-car concept enables ISR to configure the loco-hauled trainsets according to the required capacity. Each of the eight-car trains currently in-service feature seating capacity for 1,000 passengers. The popular trainsets, based on a proven platform concept in operation across Europe, are in daily service in Israel and compliant with all current safety, comfort and efficiency standards. They represent great strides in helping alleviate congestion in Israel. As a full solution provider, Bombardier Transportation operates a service depot in Haifa where 293 double-deck coaches out of ISR existing fleet are being upgraded for a speed of 160 km/h and for electric traction.

About Bombardier Transportation

Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services.

Tesla Cuts 9% of Work Force

(Reuters) – Electric car maker Tesla Inc (TSLA.O) is cutting several thousand jobs across the company as it seeks to reduce costs and become profitable without endangering the critical production ramp-up for its Model 3 sedan.

In an email he said had been sent to staff, billionaire Chief Executive Elon Musk said on Tuesday that the cuts were part of a simplification of Tesla’s management structure promised last month.

“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9 percent of our colleagues across the company,” the email read.

“These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.”

Tesla has been trying to hit a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups. Last week, Musk said the carmaker should achieve its target by the end of June.

Shares rose as much as 7 percent and were last up 3.6 percent at $344.18.

The layoffs mean there likely will not be more job cuts in the near-term, said Efraim Levy, analyst at CFRA Research, adding that Tesla will likely raise capital early in 2019.

“I don’t think if Tesla becomes profitable in Q3 and Q4, that will be sustainable because of ramping up of the production. The layoffs may help them to achieve profitability in the near-term but not sustain it.”

Tesla has been burning through cash as it continues to spend on its assembly line and prepares for new investments on projects such as the Model Y crossover and its Gigafactory.

Free cash flow, a key metric of financial health, widened to negative $1 billion in the first quarter from negative $277 million in the fourth quarter, excluding costs of systems for its solar business.

Several Wall Street analysts anticipate a capital raise this year despite Musk’s statements that it will not be necessary due to profitability and positive cash flow in the third or fourth quarters.

Tesla said it began notifying impacted workers on Tuesday and would continue to do so throughout the week. A spokesman said it would reduce overall employment back to around 37,000 – roughly in line with numbers at the end of last year.

Musk also said that Tesla had decided not to renew a residential sales agreement with Home Depot (HD.N), and would focus instead on selling its solar products through its own stores and website. The company will seek to re-employ most Tesla employees at Home Depot stores at its own locations.

Musk told employees in May that the company was undergoing a “thorough reorganization” as it contends with production problems, senior staff departures and recent crashes involving its electric cars.

At the start of April, the company’s shares had fallen by around 35 percent from a peak hit last September but signs that it is on course to meet an output target of Model 3 cars have wiped out almost all of this year’s losses.

(Reporting by Laharee Chatterjee and Vibhuti Sharma in Bengaluru; Editing by Saumyadeb Chakrabarty, Patrick Graham and Nick Zieminski)

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