SHANGHAI (Reuters) - A joint venture between Bombardier Inc (BBDb.TO) and China’s CRRC Corp Ltd (601766.SS)(1766.HK) has won a 1.79 billion yuan ($270.76 million) contract to build a monorail line for a Chinese city, the Canadian transport giant said on Monday.
Bombardier said in a press release that CRRC Puzhen Bombardier Transportation Systems Limited won the contract to supply Wuhu city in eastern China with its automated Innovia monorail system and 240 cars, the unit’s first monorail contract in China.
“We are confident that the monorail will become an icon for Wuhu city and we will see more Bombardier monorail systems in other Chinese cities in the future,” said Bombardier China President Zhang Jianwei in the statement.
Bombardier and CRRC own equal shares in the joint venture, which was established in 2014 to focus on the Chinese monorail market. Bombardier’s railway arm has six other joint ventures in China.
China has been ramping up investment in inner-city mass transit project to alleviate congestion. However, media has recently reported that subway projects in at least three cities have been halted over debt concerns.
Reporting by Brenda Goh; Editing by Robert Birsel