Wabtec Subsidiary To Design, Install Train Control for Brazil’s MRS Logística
On March 2, Wabtec Corporation (NYSE: WAB) announced that its Xorail Inc. subsidiary has signed a $165 million contract to design and install communications-based train control for MRS Logística, which operates the Southeastern Federal Railroad Network in Brazil.
Wabtec said that under the contract, Xorail will provide turnkey project management; design and installation of signaling, communications and train dispatch equipment; and on-board electronic equipment for 500 locomotives and 50 auxiliary vehicles. The project is scheduled to be completed in 2013.
“This train control project represents Xorail’s entry into the growing rail market in Brazil, and a significant expansion of Wabtec’s presence in the region,” said Albert J. Neupaver, Wabtec’s president and CEO.
“This major investment in our infrastructure will improve the safety of our operations and is an essential part of meeting increased demand,” said Eduardo Parente, CEO of MRS. “Ours is a highly complex network due to the density of the track and geography of the region, which we believe makes this train control project a first in freight rail operations around the world. After a lengthy bidding process, we are convinced that Xorail is uniquely positioned to deliver a solution.”
Wabtec has expanded its activities in Brazil in recent years. In 2009, it opened a service center in MRS Logística’s Belo Horizonte maintenance shop, and at the end of last year it acquired Adantech, a Brazil-based manufacturer of friction products.
Wabtec said that under the contract, Xorail will provide turnkey project management; design and installation of signaling, communications and train dispatch equipment; and on-board electronic equipment for 500 locomotives and 50 auxiliary vehicles. The project is scheduled to be completed in 2013.
“This train control project represents Xorail’s entry into the growing rail market in Brazil, and a significant expansion of Wabtec’s presence in the region,” said Albert J. Neupaver, Wabtec’s president and CEO.
“This major investment in our infrastructure will improve the safety of our operations and is an essential part of meeting increased demand,” said Eduardo Parente, CEO of MRS. “Ours is a highly complex network due to the density of the track and geography of the region, which we believe makes this train control project a first in freight rail operations around the world. After a lengthy bidding process, we are convinced that Xorail is uniquely positioned to deliver a solution.”
Wabtec has expanded its activities in Brazil in recent years. In 2009, it opened a service center in MRS Logística’s Belo Horizonte maintenance shop, and at the end of last year it acquired Adantech, a Brazil-based manufacturer of friction products.