BUSINESS

Bombardier wins German locomotive rail order potentially worth US$2 billion

06/18/2013 09:55 EDT | Updated 08/18/2013 05:12 EDT
BERLIN - Bombardier Transportation has agreed to deliver up to 450 electric locomotives by 2020 to German railway operator Deutsche Bahn AG under a framework deal that is potentially worth US$2 billion.

The initial order for 130 locomotives is worth US$573 million.

The operator's locomotive fleet already includes more than 700 Traxx locomotives for freight and passenger service.

The locomotives can travel at speeds of up to 160 kilometres per hour.

The agreement announced Tuesday came more than two months after the rail division of Bombardier Inc. (TSX:BBD.B) won two orders involving Deutsche Bahn worth US$585 million.

Bombardier secured a contract in April worth US$440 million under a framework agreement with Siemens to design and supply major components such as body shells and trailer bogies for the next generation ICx high speed trains for Deutsche Bahn AG.

The rail operator also placed a US$145-million order for 12 additional double-deck commuter trains on top of the orders for 290 coaches already received. Bombardier has delivered almost 2,000 double-deck cars to Deutsche Bahn since 1992.

Berlin-based Bombardier Transportation is the world's largest rail transportation manufacturer with more than 100,000 rail vehicles in operations in more than 60 countries.