The Consortium of Bombardier/Alstom and Amtrak today announced an agreement, settling all current legal disputes associated with the comprehensive $1.2 billion US high-speed rail program. This program covered performance and maintenance, for a ten year period, of 20 high-speed Acela Express** trainsets, the purchase of 15 additional high-speed electric locomotives and the construction of three new maintenance facilities.
Under the terms of the agreement, the parties will drop all claims against each other relating to the program and the Consortium will be entitled to receive up to $42.5 million US against approximately $70 million US that Amtrak previously withheld. In addition, the parties will amend the maintenance services contract for the trainsets, allowing Amtrak to assume responsibility for the trains’ maintenance in October 2006.
“Instead of continuing to spend unnecessary time and money on costly and attention-diverting litigation, the full focus of our efforts will now be on improving the performance of Acela Express and delivering the best service we know how for the passengers who enjoy and depend on it,” said Amtrak President and CEO David L. Gunn.
“The Consortium is satisfied with the solution reached out of court with Amtrak,” commented Paul Tellier, President and Chief Executive Officer of Bombardier Inc. “The Consortium will respect Amtrak’s strategy to provide maintenance services and will take the necessary steps to ensure a seamless transition between now and October 2006,” added Mr. Tellier.
In November 2001, Bombardier filed a lawsuit against Amtrak in the U.S. District Court for the District of Columbia seeking damages in connection with the high-speed rail project. Amtrak then countersued, seeking its own damages in connection with the project. The agreement announced today settles Bombardier’s lawsuit and Amtrak’s countersuit, and speeds up the transfer of the maintenance responsibility from the Northeast Corridor Management Service Corporation (NECMSC) to Amtrak to October 2006. The transfer was originally foreseen in 2013.
Amtrak and NECMSC have committed to work closely together over the next three years to ensure and maximize the trains’ operational reliability.
“During the transition period, training will be provided to Amtrak employees and after October 2006, NECMSC will continue to provide equipment parts and technical advice to Amtrak’s Mechanical department, as needed,” explained Mr. Fred Einbinder, Chairman of the Board of NECMSC and General Counsel of ALSTOM Transport.
Acela Express is Amtrak’s premium service in the Northeast, with 10 daily roundtrips between Boston and New York, including intermediate stops, and 13 daily roundtrips between Washington and New York, with intermediate stops.
Development of the high-speed service began 1996, when Amtrak and the Consortium agreed to the design and manufacture of the Acela Express trainsets, the building of maintenance facilities in Boston, New York and Washington, and maintenance of the equipment for a period of ten years. (The 10-year term started in 2003.) The first of the trainsets was delivered in December 2000 and since its introduction into revenue service, more than six million passengers have ridden Acela Express.
