Bombardier Signs US $1,650 Million Contracts for Rapid Rail System in South Africa

The Bombela Consortium, of which Bombardier Transportation is a member, has finalized the terms of the Concession Agreement for a rapid rail transit system with the Gauteng Provincial Government of South Africa. In July 2005, the Gauteng Provincial Government selected the Bombela Consortium as preferred bidder. Construction of the new line will commence immediately.

The contract for the 54-month design-build portion of the contract is valued at approximately US $3.3 billion (€2.6 billion). Bombardier’s share of the design-build contract is approximately US $950 million (€750 million). Bombardier’s share of the separate 15-year maintenance services contract carries a value of approximately US $700 million (€550 million).

The project, to be implemented under a Public Private Partnership scheme, consists of financing, design-build, and operation and maintenance of the Gautrain Rapid Rail Link. The Bombela consortium consists of the following members: Bombardier; French civil contractor Bouygues Travaux Publics; South African civil contractor Murray & Roberts; and Strategic Partners Group (SPG), which is a group of several South African Broad Based Black Economic Empowerment companies.

The 80-km Gautrain Rapid Rail Link will connect Johannesburg, Tshwane (Pretoria) and the Johannesburg International Airport. Bombardier will be responsible for the core electrical and mechanical systems, including a fleet of 96 Bombardier Electrostar vehicles. The system will open in two phases. Phase 1 will include the Sandton, Marlboro, Midrand, Rhodesfield, and Johannesburg International Airport (JIA) stations and Phase 2 will extend the system to the Park, Rosebank, Centurion, Tshwane (Pretoria) and Hatfield stations.

Commenting on today’s announcement, André Navarri, President of Bombardier Transportation, said: “This decision by the leaders of Gauteng Province is an important step in the development of South Africa’s rail infrastructure and promises to deliver long-term economic benefits for the country and its people.”

Raymond T. Betler, President of Bombardier Transportation, Total Transit Systems, said: “As a global leader in the supply of complete transportation systems for worldwide markets, we are exceptionally proud to be associated with this project. We will deliver a world-class transit system for the people of Gauteng Province and South Africa. Through this contract, Bombardier is fully committed to making this project a lasting contribution to the empowerment and socio-economic development of the people of South Africa.”

Bombardier will be responsible for the design and supply of the Electrostar vehicles and the Bombardier CITYFLO 250 train control technology. In conjunction with its Broad Based Black Economic Empowerment partners, Bombardier will supply the power supply and distribution systems, communications systems, automatic fare collection, track work and maintenance equipment, as well as project management, systems engineering and integration, and testing and commissioning. The civil contractors will be responsible for all of the civil works, including tunnels, stations and the maintenance depot. The partnership also will be involved in maintaining the system during the 15-year operating period following construction.

Bombardier Transportation’s facility in Derby, United Kingdom, will be responsible for manufacturing the Electrostar fleet of vehicles, with final assembly performed in South Africa. The Electrostar vehicle is operating on a number of lines in the UK, including the c2c line, where it is achieving some of the highest reliability figures in the country.

Bombardier Transportation has its global headquarters in Berlin, Germany, with a presence in over 60 countries. It has an installed base of approximately 97,000 vehicles worldwide. The company offers the broadest product portfolio and is recognized as the leader in the global rail sector.

About Bombardier
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2006 were $14.7 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at

Bombardier, Electrostar and CITYFLO are trademarks of Bombardier Inc. or its subsidiaries.

For information
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