Winnipeg Free Press - PRINT EDITION
Posted: 02/8/2013 1:00 AM | Comments: 0
Winnipeg bus maker New Flyer Industries now has a firm contract in its hands for a mammoth order of 550 buses from the Los Angeles County Metropolitan Transportation Authority (LA Metro) and an option for another 350.
The five-year contract for up to 900 Xcelsior 40-foot heavy-duty compressed natural gas (CNG) buses could be worth as much as $500 million in revenue for the largest bus maker in North America over the next few years.
The LA Metro order is anticipated to begin production in the fourth quarter of 2013 and will be completely made and assembled at New Flyer of America's St. Cloud, Minn., manufacturing facility.
The news was part of a significant few weeks for the company.
Last month, it landed a $116-million investment for 20 per cent of the company from Brazilian bus maker Marcopolo S.A.
Between 1998 and 2001, New Flyer manufactured 466 CNG buses for LA Metro. It will be the first time New Flyer has built for Metro in more than 10 years and the first time the New Flyer Xcelsior model will be included in LA Metro's active transit fleet of more than 2,200 buses.
"We are thrilled to be awarded the Metro contract," said Paul Soubry, president and CEO of New Flyer. "With our last Metro build more than 10 years ago, we're excited to have this opportunity to once again build, deliver our best-in-class Xcelsior and provide service and support for the life of Metro's buses."
On Jan. 8, 2013, LA Metro issued New Flyer a notice of intent to award this contract but advised that its safety committee and board of directors approvals had to be achieved before a contact could be issued.
At the end of the third quarter of 2012, New Flyer's backlog totalled 6,206 equivalent units (EQs) with a total value of $2.64 billion. An equivalent unit gives an approximate measure of the size of a bus, and a longer-than-typical 40-foot bus represents two units.
Since then, the company has announced new orders and options totalling about 1,500 EQs.
That includes a contract to build up to 90 heavy-duty diesel buses for the Milwaukee County transit system, also announced Thursday.
That order calls for New Flyer to provide 55 of the Xcelsior buses this year.
There's an option for Milwaukee to purchase another 35.
New Flyer has provided almost 700 buses to the county in the last 16 years.
Republished from the Winnipeg Free Press print edition February 8, 2013 B10
Having problems with the form?Contact Us Directly
U-Haul staff find deceased infants inside "delinquent storage locker"
One of two officers acquitted of attempted murder staying with WPS
Jets boss Maurice mad enough to start cussing
Jets make roster changes for Hurricanes game to turn around recent nosedive
Unfazed by poll dip: Judy W-L
Ottawa issues new guidelines on use of drones
Body found in river identified as man missing since August
Drop by News Café on election night
St. Boniface selected as finalist in Great Places in Canada contest
Oscar de la Renta remembered for fun, romance
Sanders makes last-minute plea to voters as poll shows his support has all but vanished
KE kids returning to school Wednesday
Father-killer seeks freedom
Vision: n. ability to plan or form policy in a far-sighted way
EIC sells U.S. cell tower company, retains Canadian operations
Investigated cop suing police, fellow officer
HSC shows off special isolation rooms
Canadians' favourite chip Jalapeno Mac 'N Cheese
Door-to-door mail ends quietly
Warm again today, chance of showers Wednesday
Think tank calls for review of charity audits
Scientists are exploring ways to lessen impact of traumatic memories
Reports: Televangelist urged vasectomies, abortion
Oscar Pistorius sentenced to 5 years in prison
Poll could be bad for Bowman
Blaney says terrorist threats are real
Spotlight on strikers as Madrid visits Liverpool
Canadians hail de la Renta as fashion force
Brandon priest under investigation for alleged fraudulent purchases