Bombardier-led group wins $4.1 billion railway contract in Australia

Fri Jan 17, 2014 7:33am EST

Pierre Beaudoin, President and CEO, Bombardier Inc., takes part in a panel discussion titled ''Global Overview'' at the Milken Institute Global Conference in Beverly Hills, California April 29, 2013. REUTERS/Gus Ruelas

Pierre Beaudoin, President and CEO, Bombardier Inc., takes part in a panel discussion titled ''Global Overview'' at the Milken Institute Global Conference in Beverly Hills, California April 29, 2013.

Credit: Reuters/Gus Ruelas

(Reuters) - A group led by Bombardier Inc (BBDb.TO) has won a $4.1 billion passenger train contract with the Australian state of Queensland.

Bombardier, the world's largest trainmaker, said its share of the rolling stock contract was worth about $2.7 billion.

Bombardier will supply 75 electrical-powered trains, build a depot and provide maintenance for 30 years.

The depot design and construction will be subcontracted to UK-based construction company Laing O'Rourke, Bombardier said in a statement.

Queensland is looking to replace its aging passenger train fleet to meet an increase in demand as the south-eastern part of the state grows.

Specialist asset manager John Laing, Japanese trading house Itochu Corp (8001.T) and Llyods Bank (LLOY.L) unit Uberior are the other members of the consortium.

Bombardier won a $639 million order earlier this month for 365 additional rail cars from the San Francisco Bay Area Rapid Transit District.

Bombardier shares closed down 7.6 percent at C$4.17 on Thursday on the Toronto Stock Exchange after the company warned of a delay in deliveries of its new CSeries jets.

(Reporting by Ashutosh Pandey in Bangalore; Editing by Joyjeet Das and Saumyadeb Chakrabarty)

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