MONTREAL - Bombardier Inc. (TSX:BBD.B) has been awarded its largest automated people mover North American contract in a decade with a US$255-million deal for the Phoenix Sky Harbor International Airport.
The contracts are to supply, operate and maintain the rail project, the Berlin-based transportation division announced Tuesday.
The design and build portion of the contract is valued at US$186 million while a separate operate-maintain contract is valued at US$69 million over 10 years.
"We are confident it will serve as a role model for other cities and airports seeking modern transit solutions," stated Michael Fetsko, vice-president APM at Bombardier Transportation.
The design-build contract calls for the supply of all of the system-wide electrical and mechanical equipment, and the construction and equipping of the operations and maintenance and storage facility.
Completion of Stage 1 of the 3.5-kilometre PHX SkyTrain is scheduled in 2012.
Bombardier Transportation's plant in Pittsburgh will be responsible for the design and supply of the 18 driverless vehicles, automatic train control, power supply and distribution and communications systems.
The Pittsburgh facility will be responsible for the operations, maintenance and storage facility as well as project management, systems engineering and integration, and test and commissioning.
Bombardier's automated people movers have been in operation in cities and airports around the world for more than 35 years.
North American locations include Atlanta, Dallas/Fort Worth, Denver, Houston, Las Vegas, Miami, Orlando, Pittsburgh, Seattle-Tacoma, Tampa and San Francisco.
Meanwhile, Taipei's mayor has asked Bombardier to send a top official to solve problems with its Neihu Mass Rapid Transit Line.
Last Friday's breakdown of the line is believed to have been caused by the new integration with another line built more than a decade ago. The Neihu and Muzha lines lost all signal and communications for more than eight hours.
Politicians are considering reducing fares or offering one month of free service to help restore public confidence in the system.
UBS analyst Fadi Chamoun continues to have a "buy" rating on Bombardier shares, saying the transportation division is worth $3 alone.
He said the aerospace segment will well-placed to weather the downturn in orders from a liquidity/production perspective even though the business jet market continues to be near-bottom.
In a report on Tuesday, Strauss said the likelihood of further production cuts and risk of an extended downturn limit stock gains.
On the Toronto Stock Exchange, Bombardier shares lost eight cents at $3.65 in early afternoon trading.