Together with Bombardier Transportation of Canada, Receive Order from New York State for Next-generation Suburban Commuter Rail Cars
Oct. 25, 2002
TOKYO(October 25, 2002)--Mitsubishi Electric Corporation and Nissho Iwai Corporation, in collaboration with Bombardier Transportation, received an order for 532 Bombardier "M-7" commuter rail cars from the New York State Department of Transportation. The order is for a total value of approximately 110 billion yen, out of which 2 billion yen worth of in-vehicle electrical machinery and appliances in relation to train propulsion controls, such as electric drive control equipment (inverter systems), motors, drive units and so on, will be delivered by Mitsubishi Electric and Nissho Iwai. The New York State Department of Transportation has plans to purchase a maximum of 1,600 rail cars, totaling 330 billion yen including options, for Metro North Railroad and Long Island Railroad, which are under the jurisdiction of said department. This will be the world's largest order for a rail car blanket purchase.
In addition to the fact that Mitsubishi Electric and Bombardier provide the world's most sophisticated products in terms of technology, after receipt of the 326 rail car order from the Long Island Railroad 3 years ago, the efforts of Mitsubishi Electric and Nissho Iwai have come to be highly evaluated in the US railway market. As a result, 180 out of the 532 railcars ordered will constitute the first delivery ever to Metro North Railroad.
This project is based on a contract that was concluded, with options, in 1999 and which serves as a purchase utilizing New York State government funds. The project has a proviso that tenderers must follow the "New York State Content (Intrastate Procurement)", which requires tenderers to employ companies in New York State wherever possible, and to contribute to the promotion of local industries.
Not only is the technical evaluation of the group highly regarded, but their efforts in meeting the "New York State Content", such that the group purchases key materials/parts from New York State-based companies and carries out end-product assembly/tests in New York State, are also highly thought of. These factors are cited as one of the major reasons for the New York State Department of Transportation to attach a high value to the group.
The New York State Department of Transportation order is for rolling stock to replace aging 938 "M-1" commuter rail cars that were delivered in the early 1970s. The ordered "M-7" commuter rail cars will be put into operation sequentially from October 2002.
With this order receipt as an opportunity, Mitsubishi Electric and Nissho Iwai are focusing on an advancement into the US transport business, and intend to expand sales not only in the railcar field, but also in the bus and railway freight transport fields.