Bombardier Transportation

Bombardier Transportation
Wholly owned subsidiary (of Bombardier Inc.)
Industry Rail vehicle manufacturing
Founded 1974 (1974)
Headquarters Montréal, Canada, St Pancras International, London
Key people
 Laurent Troger (President)
Products Locomotives
High-speed trains
Intercity and commuter trains
Trams
People movers
Signalling systems
Revenue

US$8.8 billion (2013);[1]

US$9.6 billion (2014)[2]
Number of employees
 34,900
Parent Bombardier Inc.
Website Bombardier.com/en/transportation

Bombardier Transportation is the rail equipment division of the Canadian firm Bombardier Inc. Bombardier Transportation is one of the world's largest companies in the rail vehicle and equipment manufacturing and servicing industry. Bombardier Transportation is headquartered in London and Montreal. There are many regional offices, production and development facilities worldwide.[3][4]

Bombardier Transportation produces a wide range of products including passenger rail vehicles, locomotives, bogies, propulsion and controls.

Laurent Troger is the president and chief operating officer of Bombardier Transportation.[5] In January 2011, the company had 34,900 employees, 25,400 of them in Europe, and 60 manufacturing locations around the world.[6]

History

20th century

1970s: Formation and first orders

Bombardier Transportation's first order for mass transit rolling stock was in 1974 for the Société de transport de Montréal (STM) (Montreal transport authority) to build metro trains for the Montreal Metro.[7]

The core of the Transportation group was formed with the purchase of Montreal Locomotive Works (MLW) in 1975.

1980s: Expansion to the US, France and Belgium

With the 1975 purchase, Bombardier acquired MLW's LRC (Light, Rapid, Comfortable) tilting train design which it produced in the 1980s. In 1987, Bombardier bought the assets of US railcar manufacturers Budd and Pullman-Standard.

In the late 1980s Bombardier Transportation gained a manufacturing presence in Europe with the acquisition of a 45% share in BN Constructions Ferroviaires et Métalliques[7] (whose principal site was in Brugge (Bruges), Belgium) in 1986, and the acquisition of ANF-Industries (whose principal site was in Crespin, France, near the Belgian border) in 1989.[7]

1990s: Expansion to Mexico, Germany and the UK

In 1990, Procor Engineering Ltd. of Horbury near Wakefield, UK; a manufacturer of bodyshells, was acquired,[7] and renamed Bombardier Prorail.[8]

In 1991 the group purchased Urban Transportation Development Corporation (UTDC) from the Government of Ontario, which had previously acquired Hawker Siddeley Canada. MLW was sold to General Electric in 1988. GE ended railcar operations in Canada in 1993. Bombardier Transportation continues to operate the railcar operations in Thunder Bay.

In 1991 the grouping Bombardier Eurorail was formed consisting of the company's European subsidiaries; BN, ANF-Industrie, Prorail, and BWS.[9][10] In 1992, the company acquired Mexico's largest railway rolling-stock manufacturer, Concarril, from the Mexican government.[11]

In 1995 Waggonfabrik Talbot KG in Aachen, Germany, and in 1998, Deutsche Waggonbau AG (DWA), and Ateliers de Constructions Mécaniques de Vevey in Vevey, Switzerland,[12] were acquired.[7] DWA encompassed the major portion of the railway equipment industry of the former East Germany ("Kombinat Schienenfahrzeugbau"), and had its principal sites in Bautzen and Görlitz.

21st century

2000s: Western world's largest rail-equipment manufacturer

In 2001 Bombardier Transportation acquired Adtranz from DaimlerChrysler, and became by many measurements the Western world's largest rail-equipment manufacturer.[13] The takeover was approved by the EU competition commission subject to a number of minor clauses including the divestment of Bombardier's stake in Adtranz/Stadler joint venture Stadler Pankow GmbH (sold to Stadler Rail), and an agreement to retain Kiepe as a supplier, and ELIN as a partner for a number of years after the acquisition.[14] The addition of ADtranz made Bombardier a manufacturer of locomotives along with its existing product lines of passenger carriages, multiple-unit trains, and trams. With the acquisition of ADtranz, Bombardier also gained competence in the electrical propulsion components business.

After the Adtranz acquisition in 2001, Bombardier Transportation moved its core manufacturing strategy for Europe with a few legacy plants in North America for the smaller North American market:[15]

Additionally a number of plants would have specialised manufacturing roles, including Česká Lípa (Czech Republic) and the Pafawag facility in Poland which would supply parts and welded structures, and sites in Vienna (Austria) and Bautzen (Germany) which would specialise in light rail vehicle (LRV) manufacture whilst double deck trains for the German market would be manufactured in Görlitz. Other sites had their work mandate reduced in scope, or were closed.[16][17]

In 2004 due to overcapacity in the European passenger train industry, Bombardier announced a restructuring program resulting in the closure of several plants; in the UK, the bogie production site at Pride Park, Derby, Bombardier Prorail (Wakefield), and a maintenance facility in Doncaster were closed; in mainland Europe, the plants at Pratteln, Kalmar and Amadora were to be closed,[18] as well as plants in Ammendorf and Vetschau in eastern Germany which had been slated for closure in 2001.[16][18]

2010s: Global operations and consolidations

In late 2012 Bombardier announced the closure of the Bombardier Talbot plant in Aachen, and a reduction in workforce in the transportation division of 1,200 people.[19][20]

The company obtained two major orders in 2014: San Francisco Bay Area Rapid Transit District (BART) ordered an additional 365 rail cars from Bombardier in early 2014, to be assembled at Bombardier's plant in Plattsburgh, New York;[21] Transport for London (United Kingdom) awarded a £1.3 billion contract to provide 65 Aventra trains for Crossrail, and included the building of a maintenance depot at Old Oak Common.[22]

In May 2014 Bombardier extended its presence in Australia by purchasing a 100% stake in Rail Signalling Service (RSS), an Australian company focused on designing and constructing rail signalling solutions.[23] In Sep 2014 the downsizing and eventual closure of the Maryborough factory was announced,[24] the factory closed in Dec 2015.[25]

In January 2015 the government of Hungary nationalised the loss-making and under-utilised Bombardier carriage works at Dunakeszi (Bombardier MÁV Kft., Hungarian), acquiring a 64.9% stake for $7.8 million.[26]

Former headquarters in 2016

In May 2015 the parent company Bombardier Inc. announced that it intended to split or spin-off Bombardier Transportation as a separate publicly traded company, while retaining control as the majority owner.[27] Lutz Bertling, president and CEO of Bombardier Transportation stated that a primary motivation for the sell off was to increase the company's financial flexibility, for potential acquisitions or consolidations, allowing the company to better compete with an anticipated Chinese presence in the European market.[28] An IPO was planned for late 2015.[29] In late 2015 the public investor Caisse de dépôt et placement du Québec (CDPQ) acquired a 1.5 billion USD stake in Bombardier Transportation in the form of a bond/equity hybrid, with the shares returned to CDPQ dependent on the financial performance of the company. The investment initially representing a 30% stake - a valuation of $5 billion. The sale was required in part to continue the financing of the parent company's CSeries jet, a major cause of a $4.6billion loss for the parent company in 2015.[30][31]

In late 2015 the National Railway Company of Belgium awarded a Bombardier/Alstom consortium a large €3.3 billion contract for 1,362 M7 doubledecker passenger rail vehicles, with a value to Bombardier of around €2,1 billion.[32]

In August 2016 Bombardier opened a 6,000 square metres (65,000 sq ft) production facility in Isando, Johannesburg, South Africa. The site was specialised for the production of electric traction equipment (Mitrac).[33]

In December 2016 citing a 'challenging market environment', Bombardier said that a 'strategic realignment' would put 'a strong focus on product standardisation and site specialisation in order to become more efficient and effective'. Up to 2,500 jobs are expected to go, with the German plants in Hennigsdorf, Görlitz and Bautzen reportedly most affected.

Products and services

Metro rolling stock

MBTA Red Line train (Boston Subway)
R142 car (NYC Subway)
Delhi Metro broad gauge train, manufactured by Bombardier.
Toronto TR subway car
Bombardier Innovia Metro 300 car at Vancouver Skytrain

Bombardier's standard metro vehicles are the mid-sized fully automated and driverless Bombardier Innovia Metro with the option for linear induction motor propulsion or a conventional rotary motor, and the high-capacity customizable Movia Metro, which is powered by conventional motors and can also be fully automated. In addition, Bombardier has produced many custom metro models not based on either model.

Monorails

Trams and light rail vehicles

Locomotives

LRC locomotive

Bombardier's locomotives are mostly linked to their acquisition of Adtranz and Montreal Locomotive Works, as well as joint venture with Alstom. Via the acquisition of Adtranz, Bombardier was able to obtain some cornerstone technologies, such as the three-phase drive technology developed by plant in Mannheim, which is the worldwide center of competence for the development of locomotives.

TRAXX electric locomotive

Other than the LRC, all other locomotives were based on European designs.

Passenger carriages

Via LRC coach
Multi-level car
Comet II car

Regular-speed multiple-unit trains

Talent DMU
Electrostar constructed for South Africa's Gautrain

High-speed trains

Acela Express train

People movers

Bombardier also supplies propulsion units, train-control systems, bogies, and other parts, and maintains train fleets.

Services

In addition to manufacturing a wide variety of passenger rail vehicles and locomotives, Bombardier Transportation provides services for commuter train providers.

  • Maintenance: Bombardier Transportation has several maintenance contracts for the servicing of commuter trains. This includes fuelling, storage, train washing and upkeep. Some of its key clients are GO Transit, MARC Train, Réseau de transport métropolitain, FrontRunner and Metrolink.
  • Train operation: Bombardier Transportation operates a number of commuter and light rail systems under contract with various transit agencies. It has been the operator for six of the seven GO Transit commuter train lines in Ontario since 2008. As of February 2015, It now operates all GO Transit rail train lines. In 2015, it also began the operation of the Union Pearson Express airport link in Toronto. Other systems operated by Bombardier include SunRail, MARC Train, Sprinter and Coaster, and the River Line.[42] The company also operates a number of airport people-mover systems, typically systems it built, such as the AirTrain JFK and AirTrain Newark in New York City under contract with the Port Authority of New York and New Jersey.
  • From 2012/2013, the Savli factory (India) is also planned to assemble Electro-Motive Diesel products for Asian customers.[43]
  • On November 2016, Bombardier Transportation signed an eight-year contract worth of $331 million to supply operating and maintaining services with Réseau de transport métropolitain's six commuter rail lines in Montreal.[44]

Facilities

Bombardier Transportation has production facilities or product development in:

Deutsche Bahn

In early 2013, Deutsche Bahn announced that it was suing Bombardier for €350 million because of some serious defects in trains used on the suburban S-Bahn rail network in Berlin. This was in addition to the €160 million it was asking for from Bombardier because of problems with more than 200 regional trains operating in southern Germany and problems with the brakes in regional and local trains in Munich.[50] The matter was settled out of court in March 2015. Lutz Bertling, head of Bombardier's transportation division at the time, confirmed the two firms had come to an agreement, saying: "The settlement is a positive signal for our future cooperation."[51]

Everline

In January 2015, the Canadian Broadcasting Corporation (CBC) reported[52][53][54] that South Korea's Special Investigation Unit for anti-corruption produced a report accusing Bombardier Transportation of corruption in the pursuit of the 2004 contract to build an 18 km elevated Light Rapid Transit (LRT) rail system called the Everline connecting the Giheung Station on the Bundang (Yellow Line) of the Seoul Metropolitan Subway system to a large amusement park named Everland, via Yongin, the 12th largest city in South Korea, about 30 km from central Seoul.

The investigation report alleges that Bombardier provided gifts and trips to Canada for civil servants and politicians involved in the contract decision, which was based on revenue expected from an inflated estimate of 180,000 passengers per day using the service. It also alleges that Bombardier created a $2-million slush fund for the Canadian citizen Kim Hak-Pil, a high-ranking Bombardier executive in South Korea. Bombardier has consistently denied the corruption allegations, stating that "They were not pleasure trips. There is a need to convince the people that our technology works well.... If it had been corruption, they would have charged us." The statute of limitations has now expired, due to lack of evidence according to Bombardier.

Everline operation has been financially troubled since construction was completed in 2010.[55] The system remained dormant until service began in 2013[56] while the line owner successfully negotiated with the city of Yongin a minimum revenue guarantee of 29.5 billion KRW[57] per year regardless of passenger load.[58] This is said to be a serious burden for the city because ridership is reported to have risen to only about 20,000 passengers per day on the 30 carriages, or about a quarter of the maximum possible capacity of the fleet in a 12-hour day. A reason suggested for this is the fare of 1100 KRW (about US$1 in 2015); it is impossible to pay for Everline trips via a transfer surcharge on a connecting subway ticket. A 2014 web page[59] of a Seoul tour service retailer makes no mention of the Everline among the suggested modes of bus transport between Seoul and Everland. A lawyer who filed legal action on behalf of the citizens of Yongin is reported to have provided details about Bombardier's pursuit of the contract. He said that "between 2003 and 2005, Bombardier funded three luxurious trips to Canada to each of 37 people" including 18 Yongin city councillors on so-called "LRT field trips".[52][53]

Toronto Transit Commission

On 16 October 2015, the Toronto Transit Commission (TTC) announced that it has asked its board to consider legal action against Bombardier. TTC staff is recommending that the TTC board "commence legal action, or make a claim allowed for already in the contract, of $50 million for late delivery" against Bombardier. Bombardier had committed to delivering 67 custom-built Flexity Outlook streetcars to the TTC by October 2015 for its streetcar system, but only 10 were in service at the time.[60][61]

On 28 October 2015, the TTC board voted in favour of a lawsuit against Bombardier "for at least $50 million to recoup lost costs", according to Chair Josh Colle, because of the company's failure to deliver the additional new streetcars.[62]

See also

Competitors:

References

  1. ↑ "Announces Financial Results for the Fourth Quarter and the Fiscal Year Ended December 31, 2013". Bombardier.com. 13 February 2014. Retrieved 1 March 2017.
  2. ↑ "Announces Financial Results for the Fourth Quarter and the Year Ended December 31, 2014 / Pierre Beaudoin becomes Executive Chairman of the Board / Appointment of Alain Bellemare as President and CEO of Bombardier Inc. / Corporation Announces Financing Plan". Bombardier.com. 12 February 2015. Retrieved 1 March 2017.
  3. ↑ Bombardier Inc. "Bombardier Transportation Relocates Global Headquarters within Berlin". bombardier.com l. Retrieved 4 July 2017.
  4. ↑ Bombardier Inc. "Bombardier Transportation | Phone 4930986070 | Berlin, Germany". 2findlocal.com. Retrieved 1 March 2017.
  5. ↑ "Dr. Lutz Bertling". Bombardier Inc. Archived from the original on 13 November 2013. Retrieved 13 November 2013.
  6. ↑ "About Transportation". Bombardier Inc. Retrieved 20 June 2011.
  7. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 JRTR No.42 (December 2005)
  8. ↑ "Bombardier Prorail Limited". investing.businessweek.com. Bloomberg. Retrieved 29 June 2010.
  9. ↑ "Geschiedenis (1855 - ....)". www.abvv-bombardier.dommel.be (in Dutch). ABVV (General Federation of Belgian Labour. Archived from the original on 6 July 2011. Retrieved 29 June 2011.
  10. ↑ Miville Tremblay (1994). Le sang jaune de Bombardier: la gestion de Laurent Beaudoin (in French). PUQ. p. 56.
  11. ↑ "Company News: Mexican Unit To Bombardier". The New York Times. Associated Press. 10 April 1992. Retrieved 23 December 2013.
  12. ↑ "History", Bombardier-transportation.ch, archived from the original on 26 June 2015, retrieved 1 March 2017
  13. ↑ "History of Bombardier - Planes and Trains". Bombardier.com. Retrieved 1 March 2017.
  14. ↑ "Commission clears takeover of ADtranz by Bombardier, subject to commitments", europa.eu, 3 April 2001
  15. ↑ "Not in service: Inside Bombardier's delayed TTC streetcar deliveries". thestar.com. Retrieved 9 October 2017.
  16. 1 2 "Bombardier Sets Course for the Future With New European Passenger-Vehicle Manufacturing Network Strategy", www.thefreelibrary.com, Business Wire, 13 November 2001
  17. ↑ "The Passenger-Vehicle Manufacturing Network Strategy in Europe" (PDF), 2.bombardier.com, Bombardier Transportation, 13 November 2001, archived from the original (PDF) on 14 October 2013
  18. 1 2 David Briginshaw (June 2004), "Bombardier addresses overcapacity", findarticles.com, Railway Age
  19. ↑ Bombardier Announces Financial Results for the Third Quarter Ended September 30, 2012 (Press release), Bombardier, 7 November 2012, archived from the original on 15 May 2013
  20. ↑ "Bombardier schließt Bahn-Fahrzeugwerk in Aachen", www.welt.de (in German), 18 October 2012
  21. ↑ "Bombardier wins $639m additional rail car order from San Francisco BART", www.railway-technology.com, 8 January 2014
  22. ↑ "Contract signed for bombardier to deliver crossrail rolling stock and depot", www.crossrail.co.uk (press release), 19 February 2014
  23. ↑ "Bombardier Acquires Australia's Rail Signalling Services (RSS)", www.wallstreet-online.de, 1 May 2014
  24. ↑ "Bombardier to downsize and close M'boro factory", www.frasercoastchronicle.com.au, 22 September 2014
  25. ↑ Adcock, Francis (18 December 2015), "Maryborough train manufacturing base closes after nearly 40 years in operation, 19 finish up work", www.abc.net.au
  26. ↑ Joo, Ference (8 January 2014), "Hungary nationalises Bombardier plant", www.railjournal.com
  27. ↑ The Canadian Press (7 May 2015). "Bombardier to spin out rail unit in IPO but maintain control". CBC.
  28. ↑ Reguly, Eric (9 June 2015). "Chinese market drives Bombardier Transportation IPO". The Globe and Mail.
  29. ↑ "Bombardier confirms plans for Transportation IPO", www.railwaygazette.com, 7 May 2015
  30. ↑ "Caisse de dépôt buys US$1.5-billion stake in Bombardier rail division". Montreal Gazette. 19 November 2015.
  31. ↑ Tomesco, Frederic; Deveau, Scott (19 November 2015), "Bombardier Gets $1.5 Billion Caisse Deal, Drops Rail IPO", www.bloomberg.com
  32. ↑ Sadler, Katie (21 December 2015), "Belgian National Railways orders 1,362 double-deck train cars", www.europeanrailwayreview.com
  33. 1 2 "Bombardier opens South African factory", www.railwaygazette.com, 25 August 2016
  34. ↑ Josh Richman (5 October 2012). "BART board approves contract for 410 new train cars". San Jose Mercury News.
  35. ↑ Douglas John Bowen (11 May 2012). "BART taps Bombardier; U.S. content at issue". Railway Age.
  36. ↑ "Bombardier set to deliver 162 coaches to DMRC".
  37. ↑ "Bombardier Wins Contract to Provide 162 MOVIA Vehicles to India's Delhi Metro".
  38. ↑ http://www.crossrail.co.uk/route/new-trains/
  39. ↑ "Carowinds: The Early Years". Carowindsearlyyears.com. Retrieved 1 March 2017.
  40. ↑ "Home". Bombardier.com. Retrieved 1 March 2017.
  41. ↑ "ZEFIRO - High Speed Trains - Bombardier Transportation websiwe=Zefiro.bombardier.com". Retrieved 1 March 2017.
  42. ↑ "Wins New Operations and Maintenance Contract in New Jersey". Bombardier.com. 1 October 2014. Retrieved 1 March 2017.
  43. ↑ "Bombardier to assemble EMD locomotives for southeast Asia - Railway Gazette". Railway Gazette International. Retrieved 24 September 2012.
  44. ↑ "Bombardier signs with AMT for new eight-year, $331-million contract". Montrealgazette.com.
  45. ↑ "Investing in India" (PDF), Bombardier.com, Bombardier, p. 3, archived from the original (PDF) on 30 April 2014, retrieved 1 March 2017
  46. ↑ Bombardier Transportation - Facilities in China - Three Manufacturing Joint Ventures (PDF), Bombardier Transportation, 2009
  47. ↑ Sybille Maas-Müller (12 March 2015). "SITE FACT SHEET Mannheim Germany" (PDF). Bombardier. Archived from the original (PDF) on 5 April 2016. Retrieved 12 March 2015.
  48. ↑ "Bombardier Transportation in Poland" (PDF). www.bombardier.com. Bombardier. Archived from the original (PDF) on 4 February 2013.
  49. ↑ Bombardier in Canada (PDF), archived from the original (PDF) on 13 March 2012
  50. ↑ "German railway files new suit against Bombardier", www.globalpost.com, 4 March 2013, archived from the original on 14 October 2013
  51. ↑ "UPDATE 1-Deutsche Bahn says has settled disputes with Bombardier". Reuters. 20 March 2015. Retrieved 17 June 2016.
  52. 1 2 Marie-Maude Denis and Martyne Bourdeau (28 January 2015). "Bombardier Transportation accused of corruption in South Korea". CBC. Retrieved 2 February 2015.
  53. 1 2 Marie-Maude Denis and Martyne Bourdeau (28 January 2015). "Allégations de corruption contre Bombardier en Corée du Sud" (in French). Radio-Canada. Retrieved 2 February 2015.
  54. ↑ Marie-Maude Denis with Chantal Cauchy (29 January 2015). Un Train Nommé Délire (Television production). Enquête (in French). Canada: Radio-Canada. Retrieved 2 February 2015.
  55. ↑ "YongIn Everline - Yongin's White Elephant". Kojects.com. 20 November 2011. Retrieved 1 March 2017.
  56. ↑ "No Passengers on Yongin's Everline – Kojects". Kojects.com. 2 June 2013. Retrieved 1 March 2017.
  57. ↑ "YongIn Everline to Finally Open (For real this time!) – Kojects". Kojects.com. 20 November 2011. Retrieved 1 March 2017.
  58. ↑ Kwon Sang-soo (1 June 2013). "Yongin EverLine: New train, few passengers". Korea JoongAng Daily. JoongAng Ilbo. Retrieved 2 February 2015.
  59. ↑ "How to get to Everland from Seoul (Transportation guide and discount ticket info) - Funtastic Korea Blog". Funtastickorea.com. Retrieved 1 March 2017.
  60. ↑ "TTC asks its board to consider legal action against Bombardier". CP24.
  61. ↑ "TTC considers suing Bombardier after new streetcar delay". The Toronto Star.
  62. ↑ "TTC board votes to sue Bombardier over streetcars". Citynews.ca. 28 October 2015. Retrieved 1 March 2017.

Literature

  • "Bombardier Transportation - A Global Transportation Leader" (PDF), Japan Railway & Transport Review (42): 17–25, December 2005
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