Bombardier wins Korean contract

Bombardier Transportation has scored a contract with the Republic of Korea valued at $438 million to help build a $1.6-billion rapid transit system in South Korea.

The transit system will link Kimhae to Pusan, the second largest city in South Korea. Bombardier will be responsible for the core electrical and mechanical systems, including the first 46 vehicles.

Four years to build

The project is expected to take four years to build and is estimated to cost approximately $1.6 billion, with Bombardier's share totaling about $438 million.

Bombardier and Kumho Industrial Co. Ltd., will lead the consortium. They will form a jointly owned company that will operate and maintain the rapid transit system for 30 years.

Some of the other partners are Lotte Engineering and Construction Co. Ltd., Iljin Electric Co. Ltd., and Econ International Ltd.

"Outstanding opportunity"

Bombardier Transportation President and CEO Jean-Yves Leblanc said, "We welcome this outstanding opportunity to team up with leading Korean and global companies to deliver this world-class transit system.

"We are proud that our technology will be part of the transportation solution for the cities of Kimhae and Pusan and look forward to working with local suppliers and contractors."

Bombardier will be responsible for many aspects of the system such as design, engineering and testing. It will also provide operations and maintenance start-up assistance and training for Korean personnel.