Toronto Transit Commission (TTC) has selected Bombardier's Flexity Outlook low-floor tram design for its next-generation fleet.
TTC plans to replace all of its 248 Canadian light rail vehicles and 51 derivative articulated light rail vehicles with 204 Bombardier trams, as reported by the Railway Gazette.
The initial order is valued at C$1.3bn including spare parts and other costs.
The 30m-long Flexity Outlook cars will have double the capacity of today's vehicles and will be customised for Toronto.
All vehicles will be assembled at the company's Thunder Bay Plant in Ontario, Canada.
The total value of the deal may exceed C$3bn, if an option for an additional 364 vehicles in the contract is exercised.
The delivery schedule calls for prototype testing to begin in 2011 and revenue service by 2012.