Company News

Bombardier's rail unit named preferred bidder for $3.4 bln Egypt monorail project

May 28 (Reuters) - Bombardier Inc’s rail business was named the preferred bidder for a 3 billion euros ($3.36 billion) monorail project in Egypt, which would be the unit’s biggest in recent years if confirmed.

The design and build contract has potential value of 1.2 billion euros for Bombardier Transportation, while a 30-year operations and maintenance deal has a potential value of about 1.1 billion euros, the company said on Monday.

The project, which is in partnership with two Egyptian companies - Orascom Construction and the Arab Contractors - is for the building a 54-kilometre monorail system connecting the New Administrative City with East Cairo and a second 42-kilometre line linking 6th October City with Giza, Bombardier said.

The news comes as Bombardier’s rail division, its largest unit, has faced recent headwinds due to delivery delays and production problems at a handful of long-term projects, forcing the company to cut its first-quarter and full-year revenue targets for the division.

Earlier this month, the Canadian company said it would merge its corporate and regional jet units, besides selling off two aerostructures operations.

$1 = 0.8938 euros Reporting by Arathy S Nair in Bengaluru; Editing by James Emmanuel