Canada's Via Rail picks Siemens for new contract, Bombardier loses out

(Reuters) - Bombardier Inc on Wednesday missed out on its second contract in Canada this year after state-owned Via Rail picked Germany's Siemens AG for fulfilling a fresh order of locomotives.

Siemens Canada will replace Via Rail's current fleet operating in the Quebec City-Windsor Corridor with more fuel-efficient trains for a contract worth C$989 million ($741.49 million).

In February, Bombardier lost a C$1 billion contract to France's Alstom SA to provide rail cars for one of the world's biggest light rail systems in Montreal, a project led and financed by its biggest shareholder.

Bombardier did not immediately comment on the Via Rail deal. However, company spokeswoman Maryanne Roberts said the company won a contract from New Jersey Transit's board. Roberts did not comment further as the contract has not been finalised.

 

In 2016 Bombardier launched a turnaround plan for its rail operations in the Americas, following complaints by customers of delivery delays and manufacturing concerns.

Bombardier Transportation, the company's largest unit by revenues with a $34 billion backlog, aims to lower costs and boost margins by expanding its more lucrative signalling and services business.

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