Philadelphia Transit Authority Cancels $185 Million Contract with CRRC MA
PHILADELPHIA — According to a report in the Philadelphia Inquirer, the Southeastern Pennsylvania Transportation Authority (SEPTA) has “terminated for cause” a $185 million contract with Springfield-based CRRC for 45 double-decker passenger cars. The project was about four years behind schedule.
According to SEPTA officials, the newspaper reported, Chinese-owned CRRC had performed shoddy work and repeatedly failed to meet production deadlines.
“The authority is assessing its options for recouping funds that have been spent on the project,” SEPTA spokesperson John Golden said in a statement, adding that SEPTA has paid more than $50 million, the Boston Globe reported.
In response, CRRC MA spokesperson Lydia Rivera issued a statement that, “having worked closely with SEPTA’s project team, beginning with rail-car design through initial vehicle production, CRRC MA remains committed to completing the project and continues to seek further discussions to resolve SEPTA’s concerns.”
According to the Inquirer, CRRC’s bid price on the SEPTA project was $34 million below its nearest competitor, the Canadian company Bombardier, which had more than a decade of experience building rail cars in America.
In 2014, the Massachusetts Bay Transportation Authority hired CRRC MA to build new cars on the Red and Orange lines of Boston’s T network. After significant delays, the company now promises all cars will be delivered by the end of 2027. Rivera said the company has delivered 114 of 152 new Orange Line cars and 18 of 252 Red Line cars to the T.
