The commuter rail operator in Chicago area, Metra, has temporarily suspended its current search for a producer to build 367 new railcars. This is due to changes in the availability of capital to fund its USD 2.4 billion modernization plan.
Even without immediately pursuing, Metra anticipates being able to acquire some of the 367 new cars sooner than expected and at a substantial savings. Metra’s peer railroad Virginia Railway Express (VRE) has a remaining option to purchase 21 railcars from Japanese rolling stock manufacturer Nippon Sharyo at an estimated cost of $2.5 million per car. Because VRE uses the same type of railcars as Metra, the agency recently reached out to VRE about acquiring this option, since VRE may no longer need its full order.
The cost of the entire Metra purchase of 367 new railcars had been estimated at approximately USD 1.2 billion or USD 3.3 million per railcar. This is USD 800,000 more per car than the expected cost of each VRE car. If Metra is able to acquire the railcar option from VRE, it could result in savings of approximately USD 17 million, with delivery of the first set of new railcars in early 2018.
Metra has identified modernization of rolling stock as one of its highest capital priorities due to the age of its fleet and the fact that the condition of cars and locomotives is so essential to providing high-quality, reliable and comfortable service.
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