BEIJING: A Chinese rail company has won a contract in the United States recently despite President Donald Trump’s ‘America First’ campaign and promise to support local industry.
Train and rail equipment manufacturer, China Railway Rolling Stock Corp won the contract beating Canada’s Bombardier Inc and South Korea’s Hyundai Rotem.
Philadelphia city government on Thursday approved the purchase of 45 multilevel coaches from the Chinese train giant's subsidiary, CRRC MA, for its regional rail network, People’s Daily reported Saturday.
The contract award was based on technical ratings and pricing, said the authority, with CRRC's proposal offering the best value. The multilevel coaches will meet "Buy America" requirements, with 60 percent or more of the parts, labor and fabrication done in the US.
CRRC MA came in with a low bid of $137.5 million, easily besting competitors Bombardier, which bid $171.5 million and the $187.8 million bid by Hyundai Rotem.
CRRC MA's deal includes an option for 10 more cars, which, if exercised, would result in the contract's value rising to $161 million, still below the base bids by Bombardier and Hyundai Rotem.
The first of the coaches are expected to be delivered in late 2019. They will be paired with SEPTA's new electric locomotives, which are being built by Siemens of Germany.
The multilevel coaches will be produced primarily at CRRC MA's main US manufacturing facility in Springfield, Massachusetts.
It is the latest win for CRRC. Last week, CRRC Sifang America broke ground in Chicago for a $100 million plant that will build railcars for the city's transit authority.