December 12, 2018 / 5:40 PM / 7 months ago

Bombardier loses out to Siemens for Canada's Via Rail contract

FILE PHOTO - A Via rail sign is seen at Union Station in Toronto July 16, 2009. REUTERS/Mark Blinch

(Reuters) - Bombardier Inc said on Wednesday it would “evaluate” its options, after losing a C$989 million ($741 million) rail order in Canada when state-owned Via Rail picked Germany’s Siemens AG to supply new locomotives.

This is the second deal the Canadian plane-and-train maker has lost out on its home turf, after France’s Alstom SA won a contract to supply rail cars to one of the world’s biggest light rail systems in Montreal.

However, Bombardier spokeswoman Maryanne Roberts said the New Jersey Transit (NJT) board had approved a separate deal with the company, without giving further details since the deal had not been finalised.

Shares of the company rose 5 percent to C$2.30 on the Toronto Stock Exchange.

Bombardier was in the race for the NJ Transit order worth $669 million to make 113 cars. The contract could be worth up to $3.6 billion for 999 cars over several years if all options are exercised.

The company already works with the largest statewide public transportation system in the United States, which has over 900,000 daily riders, on other projects. Bombardier Transportation, the company’s largest unit by revenue with a $34 billion backlog, aims to lower costs and boost margins by expanding its more lucrative signaling and services business.

Reporting by Allison Lampert in Montreal and Nivedita Bhattacharjee in Bengaluru; Editing by Shounak Dasgupta

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