Alstom Wins TTC Line 2 Subway Contract – Canada

Introduction

The Toronto Transit Commission (TTC) has been authorized to negotiate a single-source contract with Alstom Transport Canada for new Line 2 subway trains, following approval from Canadian government authorities. This decision, which involves an initial order of 70 six-car train sets, aims to support Canadian employment amid US tariffs and economic uncertainties.

Contract Authorization and Objectives

The Government of Canada, the Province of Ontario, and the City of Toronto have approved the TTC’s plan to pursue a single-source contract with Alstom Transport Canada for new Line 2 subway trains. The objective is to boost Canadian employment and ensure the delivery of dependable trains for Toronto commuters. The previous competitive bidding process has been canceled, and all participants have been notified. Alstom’s contract will require compliance with the TTC’s original requirements, maximizing Canadian content and job creation, and pricing verified by an independent third-party.

Procurement Details and Scope

The procurement includes an initial order of 70 six-car train sets. Of these, 55 sets are intended to replace the existing fleet on Line 2. The remaining 15 sets will be allocated to service the Yonge North and Scarborough extensions. The contract allows for additional trains based on future funding and Alstom’s performance.

Stakeholder Statements

TTC CEO Mandeep S. Lali stated, “I would like to thank our funding partners for their support of our new subway trains. With the intention of maximizing Canadian content and supporting Canadian jobs, we will enter into negotiations with Alstom to secure the best product at the best price.” Negotiations are expected to begin in the coming months, with a progress report scheduled to be presented to the TTC Board by the end of the year.

Ontario Minister of Transportation Prabmeet Sarkaria said, “Our government is proud to protect Ontario from US tariffs by ensuring the TTC’s Line 2 subway trains will be made in Ontario, by Ontario workers. Working with our federal and municipal partners, we’ll continue to support Ontario workers and businesses while investing $70bn in the largest subway expansion in Canadian history.”

Union Support and Economic Impact

Unifor, the Canadian private sector union, expressed satisfaction with the tri-level government confirmation. This decision secures positions for workers of Unifor Local 1075 with Unifor members to construct the 70 six-car trains. Unifor national president Lana Payne stated, “This decision to formally award this contract to Alstom speaks volumes with respect to how we must support Canadian workers, local industries, economies, and communities. We need to see more of this if we are to build a more resilient Canadian economy.”

Conclusion

The TTC is authorized to negotiate a single-source contract with Alstom Transport Canada for new Line 2 subway trains. This contract, approved by Canadian governmental bodies, includes an initial order of 70 six-car train sets, with 55 sets for Line 2 replacement and 15 for the Yonge North and Scarborough extensions. The contract aims to bolster Canadian employment, maximize Canadian content, and ensure reliable train delivery. Negotiations are anticipated in the coming months, with a progress report due to the TTC Board by the year’s end.

Company Summary

Alstom Transport Canada: Alstom Transport Canada is involved in the manufacturing of new Line 2 subway trains for the TTC.

Toronto Transit Commission (TTC): The TTC is a public transit agency in Toronto, Canada. It is responsible for operating subway, bus, and streetcar services within the city.