Toronto's C$1.25bn Streetcar Plan Goes off Track

18 July 2008


Toronto's transit authority said Thursday that it has cancelled the proposals process to replace its aging fleet of streetcars after the bids it received from Bombardier Inc and Britain's TRAM Power Ltd were deemed to be non-compliant.

The Toronto Transit Commission (TTC) said that Bombardier's bid failed a technical evaluation related to negotiating the tight turns on the city's existing streetcar system, while TRAM Power's bid was determined to be not commercially compliant.

The TTC can now contact any vendor, including those who responded to an initial request for expressions of interest, to discuss what issues any of the companies had with the requirements of the proposal process.

The contract for 204 new streetcars, worth C$1.25bn ($1.24bn), had looked likely to go to Montreal-based Bombardier after Germany's Siemens AG decided not to enter the bidding, despite showing earlier interest.

Using the specifications outlined in the original request for proposals, the TTC said it will contact known manufacturers to discuss issues that either led the companies to not enter the bidding, or to submit a bid that was not compliant.

The contract would have an option to purchase up to an additional 364 streetcars over the next 15 years, as part of a plan to expand the use of light rail and rapid transit across Toronto, Canada's biggest city.

The Globe and Mail newspaper has put the total value of the contract at more than C$3bn.

The TTC said the latest process will take about four weeks to complete.

By Leah Schnurr, Reuters


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