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Posted by Daniel Workman Nov 7, 2006 |
From an international trade perspective, the big winner for this deal is China. The 306 Movia subway trains will be used in China's largest metro system in one of Asia's busiest urban centres. Transportation systems are vital to moving people and other resources, and China's commitment to building an efficient infrastructure for its traffic flow and economic growth bodes well for the future.
Bombardier has a proven history of delivering transportation systems around the world. By contracting the design and construction work to an international specialist, the People's Republic gains valuable experience at a competitive cost.
Bombardier expects to deliver the 51 trains in phases, starting in the second quarter of 2008. The overall project completion date is set for 2009.
Shareholders of Bombardier stock (BBD.B on TSX) have reason to cheer the news. However, workers in China - not Canada - will benefit the most from the jobs that production of the new subway cars will provide.