Toronto rail agency serves Bombardier over light rail delay

Wed Jul 20, 2016 2:50pm EDT
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TORONTO, July 20 (Reuters) - Metrolinx, the provincial agency in charge of transportation in and around Toronto, said on Wednesday that it had filed a notice of default against Bombardier Inc for delayed delivery of a fleet of light-rail vehicles.

The notice was served on July 12 and gave a short deadline for Bombardier to provide an updated schedule for delivery of the vehicles, none of which have yet been delivered.

"Metrolinx has exercised an option in our contract," a spokeswoman said in an emailed statement. "Serving notice is the right thing to do from a business perspective."

Bombardier did not immediately respond to requests for comment.

The Montreal-based plane and train maker in 2010 won a roughly C$770 million ($591 million) contract to deliver 182 vehicles between 2013 and 2020.

The light-rail vehicles are to be used in a new transit project crossing Toronto due to open in 2021.

Toronto's municipal transit authority has also complained of delayed delivery from Bombardier after receiving only a handful of streetcars it ordered in 2009.

News of the Metrolinx notice of default was first reported by the Toronto Star newspaper.

($1 = 1.3038 Canadian dollars) (Reporting by Alastair Sharp; Editing by Chizu Nomiyama)