Montreal reissues bid call for subway cars

Montreal Transit Corp. (Société de Transport de Montréal, or STM) said Tuesday it will issue an international call for bids on its pending subway car order.

The move was seen by some as a setback to both Bombardier Transportation and Alstom, who in partnership had anticipated a contract with STM worth up to C$4 billion (US$3.9 billion) to supply 765 cars, with an option for 288 additional cars. STM said it has received expressions of interest from Beasain, Spain-based Construcciones y Auxiliar de Ferrocarriles SA (CAF).

Bombardier and Alstom recently lost a court bid to quash STM’s efforts to reopen bidding. The companies said it was unfair to allow CAF to bid because conditions in a new bidding procedure launched in January were “far less restrictive and demanding” than the requirements they had to meet. But STM’s Board of Directors decided Tuesday that CAF meets its conditions as a qualified bidder, based on recommendations by both inside and outside experts, including SNC-Lavalin Group Inc.

Bombardier has warned that the company and its 90 suppliers could be forced to lay off hundreds of workers at Quebec facilities if it fails to win the contract.