American Railcar Industries, Inc. said Thursday the Indian Railways Research Designs and Standards Organization (Indian Railways) has awarded ARI a global tender to design and develop certain railcars for service in India. The contract is valued at $9.6 million.
Under the agreement, ARI will work with Indian Railways to assess the operating conditions for freight railcar traffic, design four new railcar types for heavier axle loads, and build six railcar prototypes in the U.S. ARI also will provide training to Indian Railways personnel on design, testing, manufacturing practices, quality assurance, and maintenance.
ARI will receive payment based upon the completion of certain design, manufacturing, and development activities. ARI said it “expects the contract to extend over several years, with almost half of the steps being completed within the first few years.”
“ARI is very excited about the opportunity to work with Indian Railways. We believe this agreement will assist in establishing ARI as a high-quality and dependable producer of freight railcars for use in the Indian market,” said President and CEO James Cowan. “We remain committed to identifying and seizing new opportunities both domestically and abroad. The economy and railcar market have been challenging over the last couple of years and ARI is responding to those challenges with an expanded market strategy.”
The construction of the ARI Indian Railways joint railcar manufacturing facility near Chandigarh, India, is under way. The joint venture Amtek Railcar Industries Private Ltd. , of which ARI has a 50% ownership, may utilize the railcar designs being developed under this agreement, or similar railcar designs, for the joint venture’s product offerings in India.