Setback for United Streetcar production noted

Portland, Ore., is dropping its streetcar order from Clackamas, Ore.-based United Streetcar LLC from six to five, reportedly due to manufacturing issues and the need to keep the city’s $148 million streetcar expansion project within budget.

Officials maintain that the 3.3-mile Eastside line will still open on Sept. 21, 2012, and say some of the difficulties were anticipated in general, if not by specifics.

“To reintroduce this industry to the United States, I think … it was never expected that this would be a perfect process,” said Dan Anderson, a transportation spokesman for the city of Portland, which will own the streetcars.

United Streetcar, a subsidiary of Oregon Works, Inc., also has an order of seven streetcars from Tucson, Ariz., and has competed for additional projects in other U.S. cities, including Washington, D.C. The company has touted itself as the only U.S.-based concern producing streetcars for the North American market.

Officials say Portland still may purchase a sixth streetcar by 2015, at an option cost of $3.5 million. But because of their investment to help guide the technology, coupled with a discount for not receiving the sixth car immediately, the cost could come in as low as $1.5 million.

“We are working on a way to be able to acquire the car,” said Rick Gustafson, a streetcar consultant and director of operations for Portland Streetcar Inc., the nonprofit operator. “Because it will be valuable for the fleet and, of course at that price, we ought to get it.”