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November 6, 2012
Nippon Sharyo., Inc.

Nippon Sharyo and Sumitomo Corporation receive the Contract Award for 130 Bi-Level Passenger Cars from Caltrans and IDOT

On November 6th, 2012, The California Department of Transportation (Caltrans) awarded the contract for 130 High-Speed Bi-Level Passenger Railcars to be built by Nippon Sharyo and the prime contractor Sumitomo Corporation of America (SCOA). The contract includes a base order of 130 railcars for $352 million along with an option to purchase an additional 300 railcars for $898 million, bringing the contract total to $1.25 billion.

Caltrans will execute the contract as the lead agency in a joint agreement with the Illinois Department of Transportation (IDOT) who is representing a Midwest Coalition for the states of Illinois, Michigan, and Missouri. 42 of the railcars will be delivered to California, while the Midwest Coalition will receive 88 railcars. The first cars are scheduled to be delivered in late 2015, with the final car to be delivered by early 2018.

Funding for the railcars will come from grants originated in The American Recovery and Reinvestment Act of 2009 (ARRA), which provided for improvements in high-speed intercity rail transportation as a way to stimulate economic activity. As a stipulation of the ARRA, the railcars covered in the award to Nippon Sharyo will be manufactured under a g100% Buy Americah plan which sharply aims to increase the amount of domestic content. To aid in meeting these requirements, Nippon Sharyo Manufacturing, LLC was established as a new production facility in July of 2012 in Rochelle, IL to conduct material procurement, carbody manufacturing, final assembly, and testing.

The contracted railcars will be built to conform to the specifications outlined in the Passenger Rail Investment and Improvement Act of 2008 (PRIIA). PRIIA was developed to aid in streamlining the procurement process by creating a standardized specification and this contract will be the first time it has been implemented to produce a railcar. The new Bi-Level railcars will become the standard for the coming generation of passenger railcars, and it is the goal of Nippon Sharyo and SCOA to gain a strong presence in the market and expand the business segment.

 Rendered Image of Railcar

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