W. K. Lis
Superstar
TTC's streetcar deal not to be signed until April
From Globe and Mail article of Monday, December 29, 2008:
From Globe and Mail article of Monday, December 29, 2008:
TTC's streetcar deal not to be signed until April
JEFF GRAY
December 29, 2008
The winner of a $1.25-billion contract to build Toronto's next generation of modern, low-floor streetcars won't be decided until April, the city's transit agency says, as negotiations with manufacturers continue after last summer's botched bidding process.
TTC chairman Adam Giambrone said this leaves the TTC only three months behind schedule and will still likely see the new streetcars - provided government funding is secured in coming federal and provincial budgets - roll into regular service by 2012.
He said he was confident the money would flow, as senior governments are scrambling to stimulate the economy and create manufacturing jobs, and the deal comes with a 25-per-cent Canadian content provision meant to force foreign firms to create jobs here.
"Wouldn't it be great for a new manufacturing plant to open in Ontario at a time when there's economic contraction, when people are losing their jobs?" he said.
For more than five months, the Toronto Transit Commission has been in talks with three leading firms - Montreal-based Bombardier, German-based Siemens and French-based Alstom - to see who will build the larger new streetcar fleet, which will be accessible to the disabled.
The TTC's plans to buy 204 new streetcars to replace its deteriorating fleet hit a snag in July when Siemens pulled out of the running and the TTC declared that the car design submitted by Bombardier would derail on the city's tracks.
Bombardier, which said it was stunned by the decision, accused the TTC of botching the process. It insisted that its vehicle would run with minor track repairs, but the TTC said would cost $1-billion.
Mike Hardt, Bombardier Transportation vice-president of services, launched into a vehement presentation at a summer commission meeting, protesting against the TTC's move to open new talks with his firm and his competitors.
Bombardier is building the TTC's new subway cars at its Thunder Bay plant, under a contract it won without competition that the mayor defended as necessary to preserve jobs in Ontario.
Mr. Hardt declined comment for this article. Siemens Canada Ltd. spokesman DL Leslie confirmed recently that his firm was still interested in the deal.
Representatives of Alstom Transportation Inc. did not return calls for comment, but TTC officials said the firm had not withdrawn.
The federal government has promised to invest in infrastructure to stimulate the economy in its Jan. 27 budget. The provincial government has already promised to fund the TTC's Transit City light-rail expansion plan, which calls for up to 350 extra streetcars and would bring the cost of the vehicle contract to $3-billion. Mr. Giambrone said TTC officials expect the money for the first batch of 204 replacement streetcars to flow in the province's spring budget.
By Jan. 5, negotiations on technical details and commercial arrangements between the TTC and potential bidders should be complete, leaving the firms seven weeks to submit their final prices. TTC staff would then recommend a winner to the commission of nine city councillors that oversees the TTC.