Siemens lands $277M light-rail contract
Sacramento Business Journal - by Melanie Turner Staff writer
Manufacturer Siemens Transportation Systems Inc. has landed a string of wins this week, including the biggest contract in its 24-year history at the company's light-rail assembly plant in Sacramento.
The $277 million contract calls for Siemens' Sacramento plant to build and deliver 77 light-rail cars for Salt Lake City's Utah Transit Authority in four years.
The order surpasses a Denver transit system contract to build 55 light-rail cars for $184 million, announced in February.
Siemens employs 550 people at its south Sacramento plant. Siemens spokeswoman Xanthi Pinkerton said the new contract will require additional hires, though she declined to be specific.
The plant began expanding its work force in 2006 to meet $1 billion worth of orders in the pipeline. That pipeline included a previous $88.4 million order for 34 cars for Denver's Regional Transit District. The job count at the Siemens manufacturing complex has increased at least 30 percent in the past 20 months.
The latest contract marks Utah's fourth order with Siemens, bringing the total number of Siemens vehicles for Salt Lake City to 117.
"Utah is the fifth-fastest growing state in the U.S. and the expansion of our rail system brings us closer to creating a more sustainable and less congested metro area," UTA general manager John Inglish said in a news release.
The UTA plans to build 70 miles of rail in seven years, including four new light-rail lines. All vehicles are scheduled to be ready for service by 2012 and the new contract includes an option for up to an additional 180 cars.
"Winning the Salt Lake City UTA contract demonstrates the confidence our customers have in Siemens," said company president Oliver Hauck, in the release.
Siemens Sacramento also landed its smallest contract this week, Pinkerton said. The Charlotte City Council voted Monday to purchase four more light-rail cars.
"In just five months the Charlotte Area Transit System has carried more than 1.9 million passengers on the LYNX Blue Line," said CATS chief executive Keith Parker, in a press release. "The rail vehicles are full with riders morning, noon and night."
Under Charlotte's original purchase agreement, an option was included to purchase up to 25 additional rail cars. Charlotte ordered the cars to ensure deliver within 24 months.
"We need to act now to secure these light-rail vehicles due to the rising costs of raw materials and the weakness of the dollar compared to the Euro," Parker said.
An original 16 rail cars were purchased for $2.8 million four years ago. The current price is approximately $3.8 million.
And, although it won't affect the Sacramento operation, Siemens' mobility division in Germany this week landed a record-breaking order from Belgium's state rail company worth $2.25 billion for 305 multiple-unit passenger trains.
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