Sacramento train builders to overhaul Amtrak’s fleet with Siemens’ record $3.4 billion deal
One of Sacramento’s largest manufacturers, Siemens Mobility, has received a record $3.4 billion contract to build the latest line of energy-efficient trains for Amtrak, officials said Wednesday.
This contract is the largest ever for the North American branch of Siemens Mobility, which has been headquartered in Sacramento for the past 30 years, and one of the largest private contracts ever for any company in this region, said Barry Broome, head of the Greater Sacramento Economic Council.
“It’s a stunningly large contract,” Broome said. “Usually a contract like that, you only see in defense industries.”
Beginning in 2024, the company will provide 73 new trains to Amtrak, with the possibility of expanding to up to 140 trains along with maintenance contracts, the companies announced Wednesday.
The trains will operate primarily on the East Coast and along the Northeast Corridor line, which currently uses trains built up to 50 years ago. Amtrak officials pointed to the partnership as an important way to make trains more sustainable while also creating jobs and manufacturing opportunities in America.
“These new trains, some of which will be our first hybrid battery operations in the United States, will transform the way Americans travel,” said Michael Cahill, president of Siemens Mobility, Rolling Stock in North America, in a news release. “Offering a more sustainable and comfortable travel experience, they will be built for excellence and built with pride in Sacramento.”
Siemens, the third-largest manufacturer in the region behind Intel and PRIDE Industries, will build the 73 trains in sets that include a locomotive and six-to-eight train cars. The new trains will use multi-power systems that reduce carbon emissions, and a small portion of the fleet will use a hybrid battery system for increased sustainability.
The trains will also feature new interior designs and cutting edge safety features, Amtrak said. The design will also include more wheelchair-friendly features throughout the cars.
The Siemens Mobility deal comes as part of Amtrak’s $7.3 billion investment in upgrading equipment throughout its rail lines. Amtrak expects the new trains to add over 1.5 million riders each year.
“These new trains will reshape the future of rail travel by replacing our aging 40-to-50-year-old fleet with state-of-the-art, American-made equipment,” Amtrak CEO Bill Flynn said in the news release. “This investment is essential to preserving Northeast regional and state supported services for the future and will allow our customers to travel comfortably and safely, while reducing carbon emissions.”
All trains will be manufactured at Siemens Mobility’s facility in Sacramento, which currently employs 2,100 people. Customer service and maintenance will also be managed in Sacramento, in Siemens’ McClellan Park repair plant.
Chris McKniff, a spokesman for Siemens Mobility, told The Bee that Siemens’ Sacramento team of 2,100 employees will “continue to grow,” although job additions are not currently planned specifically for this project.
Siemens’ Sacramento plant is one of the largest train manufacturing facilities in North America, and one of the most sustainable, as it generates most of its power from a large network of solar panels, according to the Sacramento Business Journal.
Broome, president and chief executive of the Greater Sacramento Economic Council, said his organization has engaged in talks with Siemens about how to add more high-skilled jobs in hardware design to the region, and this new contract provides a large opportunity to do so. A priority is ensuring that new hires represent the diversity of the region, Broome added.
Siemens’ facilities plan to produce the Amtrak trains at least through 2030. They will first produce the multi-power trains, and in 2025, they plan to begin testing on the new hybrid battery trains, officials said. Throughout, they will continue to produce standard and light rail trains that serve cities on the West Coast and beyond.
State and local politicians applauded the new contract Wednesday. New California senator Alex Padilla called it “welcome news” and Gov. Gavin Newsom said that the contract “proves that California is a great place to do business.”
“In Sacramento, Siemens Mobility is not only an important local job creator, but an active member of our tight-knit community,” said U.S. Rep. Doris Matsui, D-Sacramento, in a news release. “With this announcement, their innovation will bring state-of-the-art and environmentally friendly fleet improvements to travelers across the nation.”
This story was originally published July 7, 2021 at 10:56 AM.