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Bombardier signs deal for high-speed rail project in Saudi Arabia

File photo of the Bombardier ticker.

Fernando Morales/The Globe and Mail

Bombardier Transportation has signed contracts with Talgo SA to develop and supply components for 36 very high-speed trains for Saudi Arabia.

The contracts are worth about $367-million (U.S.).

Talgo, a member of a consortium led by the Spanish railway operator RENFE, was recently contracted to build and operate a 450 kilometre per hour high-speed line connecting Mecca and Medina.

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The deal include Bombardier's propulsion and control package and 12 year maintenance services for the trains and their components.

Most of Bombardier's manufacturing for the project will take place at its plant in Trapaga, Spain.

The Montreal-based transportation giant has participated in the development of many of the world's leading high speed rail systems, including four different generations of the TGV in France.

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