LA Metro and China Railway Rolling Stock Corporation Sign $178 Million Subway Car Contract

Los Angeles–Los Angeles County Metropolitan Transportation Authority (Metro) officials today joined executives from China Railway Rolling Stock Corporation Ltd. (CRRC) in a signing ceremony at the Union Station Red Line Station to launch a $178-million, 64 rail car purchase.

Mr. Xi Guohua, President of CRRC, presents car model to Mr. John Fasana, Chair of LA Metro Board of Directors (Credit: Nick Ni)

Coupled with up to five options to buy additional subway cars, the total value of the contract is 282 cars for $647 million.

Of the 64 HR 4000 rail vehicles to be delivered, 30 will be used to replace existing Metro Red and Purple Line trains now traveling between downtown Los Angeles, Mid-Wilshire District and North Hollywood. The remaining 34 rail cars will be used for the Metro Purple Line’s first four-mile extension from the Mid-Wilshire District to Beverly Hills when the line officially opens in 2023.

The rail car manufacturer has committed to delivering the first pilot rail vehicle by the spring of 2020, and the entire base order of 64 subway cars by September 2021.

The contract is funded by a combination of local and federal sources, including a percentage of Measure R sales tax revenues.

Conceptual renderings of the new subway cars (Credit: Metro)

The contract will create approximately 50 local jobs generating up to $38 million in local wages and benefits.  Approximately 10 percent of all new jobs created will go to targeted disadvantaged workers.

A new facility will also be purchased in the L.A. region to manufacture major components for propulsion, heating, ventilation, air conditioning and lighting systems. Manufacturing the subway cars’ exterior shell will take place in the company’s facility in Changchun, China, and final assembly will be done in Springfield, Massachusetts. The contract exceeds the federal government’s “Buy America” provisions, which require 60 percent of component parts be American-made.

During the procurement process, Metro determined that CRRC offered the overall best value proposal. CRRC had the highest rated technical offer and lowest price while offering the most robust Local Employment Program and highest U.S. component content. The firm also has an excellent record for on-time vehicle delivery and quality.

 

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