Keolis Commuter Services, which has incurred heavy financial losses since taking over operation of the state’s commuter rail system, would receive from Massachusetts Bay Transportation Authority (MBTA) more than USD 15 million in additional payments over the next 12 months under contract revisions aimed at improving service and reliability.
The additional payments would include USD 4.2 million annually to increase the number of working locomotives and coaches available on a daily basis; USD 3.7 million for maintaining new locomotives purchased by the MBTA; and USD 3.1 million to offset costs from commuter rail schedule changes that took effect in May. Those funds would come from the MBTA’s operating budget.
MBTA will also increase the maximum financial penalties that Keolis Commuter Services could be charged for failing to reach daily performance goals.
The company won an eight-year, nearly USD 2.7 billion contract from the MBTA in 2014 to run the 634 km commuter rail system. Over the first 18 months of operation, the company reported net losses of more than USD 40 million, and has indicated it expects the losses to continue at least through 2016.
Share on:
