Bombardier's share of S Africa rail contract amounts to $1.2 bln
TORONTO, April 2
TORONTO, April 2 (Reuters) - Bombardier Inc said on Tuesday that its share of a recently announced deal to supply 240 electric locomotives to South Africa's Transnet Freight Rail is worth $1.2 billion at list prices.
The Canadian train and aircraft maker said it would produce the locomotives in South Africa until the end of 2017, with first delivery expected in April 2016.
The order is part of a $4.7 billion contract to supply 599 electric and 465 diesel trains, awarded on March 17 to Bombardier, General Electric Co and China's top two train makers CSR Corp and China CNR Corp.
The trains will mainly be used for the transportation of general cargo. Transnet also moves coal, iron ore and other commodities to the country's ports an operates the country's main refined fuel pipelines.
"This landmark order demonstrates how Bombardier Transportation continues to grow local roots in key emerging markets such as South Africa," said Lutz Bertling, the train unit's chief operating officer.
Bombardier owns 74 percent of Bombardier Transportation South Africa, with the remainder held by South African employees and business trusts. (Reporting by Susan Taylor; Editing by David Gregorio)