A group led by Alstom SA (ALO) will sign a contract today to build 3,600 carriages for Passenger Rail Agency of South Africa in the decade through 2025, the agency said in an e-mailed statement.
South Africa is revamping its rail-passenger services to meet the needs of a growing population and replace trains that have been in use since the 1950s. The contract is a boon for Alstom, whose orders for the April-June period dropped 32 percent from a year earlier to 4.07 billion euros ($5.5 billion) because of falling demand for its thermal-power and rail equipment.
The Gibela consortium led by Levallois-Perret, France-based Alstom was last year named preferred bidder for a contract then valued at 51 billion rands ($5.14 billion). Alstom outbid six other companies, including Bombardier Inc. (BDRBF:US) from Canada and China CNR Corp. Ltd. The project will create 8,100 jobs in South Africa, the agency said in December.
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