SEPTA Philadelphia cancels order for Chinese commuter rail cars

The USD 185M order placed with CRRC MA for 45 double-deck commuter rail cars has been ’terminated with cause', but at a cost of more than USD 45M (which SEPTA is to take legal action to recover). 

 

Production had still not reached significant deadlines after seven years despite the first delivery being due in 2019. 

 

Because of ‘Buy America’ requirements, the cars were being assembled and fitted out in a new factory at Springfield, MA, with body shells shipped from China. 

 

The order was placed in 2017 when CRRC underbid Bombardier by USD 34M, but CRRC had not delivered any transit equipment to North America. The company has also won contracts for rapid transit cars in Boston, Chicago and Los Angeles, and MBTA Boston recently agreed to pay an additional USD 148M to ensure delivery of its USD 870M contract for 404 cars by 2029, retaining jobs at Springfield. 

 

SEPTA said that checks on production of the commuter rail cars showed issues with brakes, wiring, emergency exit windows and watertightness. 

 

After the orders were placed, politicians began to express security concerns about Chinese stock running on US systems and, because of this, no further orders have been placed with CRRC by US properties.