Canada's Bombardier is expected to cash in on some $8 billion US in grants issued by the White House for 31 rail corridors crisscrossing 31 states.
Details of the grants were released online late Wednesday night with Illinois, California and Florida among the big winners.
One initiative plans to upgrade what the U.S. government calls “the backbone of intercity passenger rail in the Pacific Northwest” by extending tracks from Vancouver B.C. as far south as Eugene, Oregon.
The U.S. Federal Railroad Administration received 45 applications seeking roughly $50 billion US for large high-speed rail projects.
That's more than six times the amount allotted to the rail portion of the federal stimulus program. U.S. President Barack Obama had initially put aside $8 billion US for high-speed rail expansion to add jobs and boost productivity.
“That investment is how we can break ground across the country, putting people to work building high-speed rail lines, because there’s no reason why Europe or China should have the fastest trains when we can build them right here in America,” Obama said Thursday from Tampa, Florida.
Last month in Washington, DC, U.S. Transportation Secretary Ray LaHood held talks with more than 100 business leaders, union representatives, industry groups and rail experts on Obama's vision for the development of high-speed and intercity passenger rail.
Bombardier's North American President Raymond Bachant and Vice President Sales U. S. Bob Furniss were among the industry guests.
More than 30 rail manufacturers, both domestic and foreign, have agreed to establish or expand their operations in the U.S. if hired on some of theses high-speed rail projects, the government said.
In December, Bombardier spokesperson Maryanne Roberts said the company was anxiously awaiting the contract awards.
Montreal-based Bombardier Inc. is one the largest rail-equipment vendors in the world.
Bombardier profits took a 26% nosedive in the latest quarter, citing weakness mainly in its aerospace division. But land transportation continues to be a bright spot for the company.
The company wasn’t immediately available for comment.
