Metra, the commuter railroad in the Chicago metropolitan area, has temporarily suspended its request for proposals (RFP) for a vendor to build 367 new railcars due to state funding issues. Illinois has put on hold more than $300 million in funding previously budgeted in Metra’s capital program.
“The most important thing we can do right now is be flexible and creative in our efforts so that we can continue to achieve what we set out to do – invest in infrastructure and enhance service and reliability for the benefit of our customers,” stated Metra Chairman Martin J. Oberman.
Metra recently reached out to Virginia Railway Express (VRE) about acquiring VRE's option to purchase 21 railcars from Japanese manufacturer Nippon Sharyo at an estimated cost of $2.5 million per car, a savings of $800,000 per car. VRE uses the same type of railcars as Metra, and VRE may no longer need its full order.
If Metra is able to acquire the railcar option from VRE, it could result in savings of approximately $17 million, with delivery of the first set of new railcars in early 2018.
The projected availability of capital funding for the entire purchase has changed since Metra’s modernization plan was first proposed. This is likely to result in the need to spread out over a longer period of time the acquisition of the remaining 346 cars and the planned acquisition of new locomotives.
“It makes greater financial sense for Metra to buy the VRE cars and pursue other options now,” Oberman said. “At the end of that process, we can resume our search for new cars with a better handle on how many we still need and, hopefully, with a better handle on our funding issues.”
Metra is also looking into acquiring and rehabilitating later model cars from other commuter railroads that may no longer have a need for them. This may result in lowering the need for as many new cars, while providing upgraded and completely renovated cars for Metra’s customers at a lower overall cost.
“Metra’s railcars and locomotives are the oldest of any of our peer railroads and the Metra Board has made it a priority to invest in our fleet,” said Don Orseno, Metra executive director and CEO. “We are committed to finding cost-efficient ways to get new or newer cars to add to our fleet while we continue to rehab about 40 railcars and 20 locomotives each year.”
Metra will proceed with the RFP at a later date once it has pursued all other alternatives to complete its modernization plan.