August 26, 2008 / 6:51 PM / 9 years ago

TTC looks to reopen streetcar bidding

<p>Toronto Transit Committee (TTC) streetcars are lined up in a yard in Toronto May 29, 2006. REUTERS/Mike Cassese</p>

TORONTO (Reuters) - Toronto’s transit authority said on Tuesday it will recommend to its commissioners that it enter into a new bidding process with three major light rail manufacturers to replace the city’s aging streetcar fleet after the initial process was scrapped last month.

The Toronto Transit Commission said that it will propose starting discussions with Bombardier Inc, the Canadian arm of Siemens and Alstom.

The discussions on technical and commercial requirements will be part of a multi-step bidding process that will include a competitive pricing phase before the C$1.25 billion ($1.19 billion) contract is awarded.

The TTC said it had met with representatives from each of the companies, all of whom said they could build a streetcar that would meet the technical requirements set out in the original bidding process.

One of the terms stipulated by the TTC is that at least 25 percent of the content for the vehicles’ design and construction would have to be Canadian.

The contract for 204 new streetcars had at first looked likely to go to Montreal-based Bombardier, but the process hit a snag in late July when the TTC said the proposal it received from the company did not meet the technical specifications.

The TTC said the design would not be able to handle some of the tight turns on Toronto’s existing track network. But Bombardier disputed the claim and said that it stood behind its bid.

The only other bid submitted at the time was from Britain’s TRAM Power Ltd, which was determined to not be commercially compliant, and the original proposals process was canceled.

Germany’s Siemens and French-based Alstom had expressed interest in the contract, but had not submitted formal proposals.

The contract would have an option to purchase up to an additional 364 streetcars over the next 15 years, as part of a plan to expand the use of light rail and rapid transit across Toronto, Canada’s biggest city.

The recommendation will be discussed at a meeting with commissioners on Wednesday.

($1=$1.05 Canadian)

Reporting by Leah Schnurr; editing by Rob Wilson

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