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TTC: Flexity Streetcars Testing & Delivery (Bombardier)

I'm guessing all the metal for the streetcars and subway cars are made somewhere like Hamilton? That's not the Bermuda Hamilton, but the Ontario Hamilton.

I have no idea....but let's say it is so.....if another company (say Siemens) won a major transportation contract in Ontario and as part of that win agreed to do final assembly in Ontario and source its steel from Hamilton....and established an assembly facility in, say, Cambridge (picking a community out of the air) they would be closer to the steel and closer to the customer.

Bombardier are in Thunder Bay as a result of a fairly unique set of circumstances....and in bidding for Ontario business that has not hurt them at all because they have a virtual monopoly lock on the business in this province ...but if they ever faced competition that same single community production model could end up being a weakness.
 
They should be thankful for all the work. Probably one of the biggest employers in Thunder Bay.

According to the city's own stats....8th ( http://www.thunderbay.ca/CEDC/Major_Employers.htm ).

TB, however, is one of those cities that stats and demographics guys worry about......the 7 employers with more people working for them are all public sector employers.....so a city with a declining population (down 1% from 2006 census to 2011) has a large number of people on the public purse. It seems to be a bit of a non-sustainable model.
 
Obviously you/we cannot force a private sector industry to locate in one place or another......but lets not forget why Bombardier is in Thurnder Bay in the first place.
Not sure the relevance to why Bombardier is in Thunder Bay. Bombardier is there, because they ended up owning the 100-year old Canadian Car & Foundry plant in Thunder Bay, which also passed through the hands of Avro, Hawker Siddeley, UTDC, SNC-Lavalin, and now Bombardier. It was one of many railcar manufacturers in Ontario. It only seems to be a quirk of history that this plant remains, while ones in Ottawa, Kingston, Cambridge, and Toronto ceased to exist.

I don't think anything precludes another manufacturer, or even Bombardier, setting up shop in another part of the province.
 
The original premise of my post was that perhaps Bombardier should be spreading the job wealth around, considering the amount of public money they're got to be receiving in the form of contracts over the coming years.

I'm not suggesting relocating existing jobs, but when you look at the number of contracts that will be coming down the pipe in the coming years, it would be reasonable to assume that Bombardier is going to need additional workers in order to handle that demand. If that's the case, why not make a condition of the contract (not specifically for Bombardier, anyone can bid for it, but we know Bombardier will probably win) that the vehicles must be manufactured in areas of Ontario that have seen a decline in their manufacturing industries in recent years. Or perhaps including some incentive in the contract for the winning company to do so (tax break, etc).

There are empty or extremely underused auto manufacturing plants in both Oshawa and Windsor (Oshawa may have demolished some of theirs though), and existing workforces that a) have manufacturing experience, and b) are looking for work.

These contracts aren't just about the vehicles, they have the potential to be about the economic stimulus related to the manufacturing of these vehicles. It's commonly said that the best form of social assistance is a job. In this case, for those hard-hit areas, these manufacturing jobs would be good jobs, and arguably would be a better economic stimulus dollar for dollar than most other programs the government could implement.

Call it social engineering if you want, call it meddling in the private sector. But when the government is handing out tax dollars to private companies, I believe it's the government's responsibility to ensure that those tax dollars are being spent with optimal benefit to its citizens. Right now there are many citizens in economically devastated areas who are willing and capable of manufacturing those vehicles if given the chance, and those people and areas would benefit significantly from the chance to do so.
 
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I'm guessing all the metal for the streetcars and subway cars are made somewhere like Hamilton? That's not the Bermuda Hamilton, but the Ontario Hamilton.

You'd be guessing quite wrong.

Mexico and Quebec are the two correct answers.

Dan
Toronto, Ont.
 
I'm no manufacturing or economics expert, but your ideas seem great to me Gweed.

It seems like it would be great if the workers who used to make cars in Oshawa and Windsor were making EMU trains for GO RER instead, or LRVs, streetcars or subway trains.
 
The original premise of my post was that perhaps Bombardier should be spreading the job wealth around, considering the amount of public money they're got to be receiving in the form of contracts over the coming years.

I'm not suggesting relocating existing jobs, but when you look at the number of contracts that will be coming down the pipe in the coming years, it would be reasonable to assume that Bombardier is going to need additional workers in order to handle that demand. If that's the case, why not make a condition of the contract (not specifically for Bombardier, anyone can bid for it, but we know Bombardier will probably win) that the vehicles must be manufactured in areas of Ontario that have seen a decline in their manufacturing industries in recent years. Or perhaps including some incentive in the contract for the winning company to do so (tax break, etc).

There are empty or extremely underused auto manufacturing plants in both Oshawa and Windsor (Oshawa may have demolished some of theirs though), and existing workforces that a) have manufacturing experience, and b) are looking for work.

These contracts aren't just about the vehicles, they have the potential to be about the economic stimulus related to the manufacturing of these vehicles. It's commonly said that the best form of social assistance is a job. In this case, for those hard-hit areas, these manufacturing jobs would be good jobs, and arguably would be a better economic stimulus dollar for dollar than most other programs the government could implement.

Call it social engineering if you want, call it meddling in the private sector. But when the government is handing out tax dollars to private companies, I believe it's the government's responsibility to ensure that those tax dollars are being spent with optimal benefit to its citizens. Right now there are many citizens in economically devastated areas who are willing and capable of manufacturing those vehicles if given the chance, and those people and areas would benefit significantly from the chance to do so.

I don't think it's a bad idea, but I think it is not a realistic one. Just because the workforce exists, doesn't mean there aren't huge costs associated with setting up a brand new manufacturing facility. Bombardier would have to invest millions of capital into opening one, and that is money that they a) might not want to speed and b) will definitely add to the overall price of the contract. There are also major skills-gap issues with opening a brand new facility in a totally different region of the province and expecting it to perform to the same level as a facility that has been in place for a century. There are also certain advantages to concentration of multiple line production facilities in one place, as it simplifies incoming / outgoing shipping of materials, with the single material distribution centre acting as the hub for entirety of the factory's production lines.

A similar situation exists with pre-glazed unitized curtainwall systems, with Ontario-based manufacturer's shipping their products all over North America - whether it be San Francisco, Calgary, New York City, or Miami. You might ask why they don't open facilities elsewhere. But the answer is that they don't need to, as there is no economic benefit for them to do so.
 
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Not sure the relevance to why Bombardier is in Thunder Bay. Bombardier is there, because they ended up owning the 100-year old Canadian Car & Foundry plant in Thunder Bay, which also passed through the hands of Avro, Hawker Siddeley, UTDC, SNC-Lavalin, and now Bombardier. It was one of many railcar manufacturers in Ontario. It only seems to be a quirk of history that this plant remains, while ones in Ottawa, Kingston, Cambridge, and Toronto ceased to exist.

I don't think anything precludes another manufacturer, or even Bombardier, setting up shop in another part of the province.

The only other railcar manufacturer left in Ontario in National Steel Car, in Hamilton. It specializes in freight cars, and has not made passenger cars or streetcars for a very long time.
 
The only other railcar manufacturer left in Ontario in National Steel Car, in Hamilton. It specializes in freight cars, and has not made passenger cars or streetcars for a very long time.

The silly "made in Ontario" requirements cost the taxpayer signfiicant dollars and I don't see why everyone is so supportive of them. By choosing Bombardier (via both protectionism and very specific requirements in the RFP) we as taxpayers and transit users had to pay a sigificant premium (estimate of 10-25%) over other streetcars.

All this did was to give the union members up north another 5 years before they are let go. They have not had signficant wins other than the TTC. So what did the taxpyer win with these jobs? A deferral of EI payments for 5 years until we no longer want to keep on subsidizing an overpriced workforce.

It's too bad for the futrure of transit projects in Ontario that the CETA did not stop this protectionism. We could be building 25% more LRT's, subways or BRT's with these decreased costs!
 
the only non Toronto stuff the Thunder Bay plant makes is the bi-levels that GO sells to commuter services throughout North America, and even then GO is by far the largest purchaser of those.

The Thunder Bay plant will be operational for a very long time however due to the upcoming expansion plans from GO and the TTC. They are going to be producing subway cars until at least 2018, streetcars likely into the mid 2020's, and maybe GOs new EMUs until 2030 or so.
 
The only other railcar manufacturer left in Ontario in National Steel Car, in Hamilton. It specializes in freight cars, and has not made passenger cars or streetcars for a very long time.
I wasn't aware that anything else still existed in Ontario! Doesn't look as though they've done any passenger equipment since the 1950s though.

... and maybe GOs new EMUs until 2030 or so.
Where were the Bombardier MR-90s EMU that are used on the AMT Deux-Montagnes line made?

Hmm, and where do they manufacture the ICTS equipment (Vancouver Skytrain, etc.).
 
The line is supposed to be all new cars now with a few going out on the 509 and 511.

This really jumped out at me.

Wow. What an epic fail. Even considering the strike this whole thing is a fiasco.

I might have asked this before, but does the TTC get compensated for the fact that Bombarider has f'd this order up so royally?
 
I wasn't aware that anything else still existed in Ontario! Doesn't look as though they've done any passenger equipment since the 1950s though.

Where were the Bombardier MR-90s EMU that are used on the AMT Deux-Montagnes line made?

Hmm, and where do they manufacture the ICTS equipment (Vancouver Skytrain, etc.).

There has been limited success IN THE PAST across Canada (and there better be success for the home province of BBD)! The MR-90 was just made for Montreal in the 90's....a whopping 58 were made.

The Bi-level coaches have 2 factories for North America, one in Thunder Bay and the other in Upper NY State. They produce a similar model in Germany for the European market. BBD has made about 1000 in Thunder Bay. The only other major (>100) purchase was for California. They are no lonter buying these cars and are switching over to a competitors product. So Thunder Bay is left with GO and a few smaller fleets.

The ICTS is a perfect example of why the government Ontario fails when creating home-grown tech. The province owned the technology and sold it for pennies to BBD. BBD made a few trains for Toronto, Vancouver and Detroit in Thunder Bay. But they now have the technology expertise in Montreal and factories making the next generation ICTS in far off cheaper places such as Gujarat India where they have produced almost 1000 cars.

So how much money over the years have we pumped into the Thunder Bay plant? And why is it there? It's there because it's where rail cars ended their journey 50 or 100 years ago when they delivered wheat to waiting Great Lake vessels. A factory needs to have a competitive cost adantage such as the material (steel in Hamilton), labour (India or Mexico), tech development expertise (Montreal in this case), close to the buyer (Toronto) or cheap hydro. The only cost advantage this plant has is subsidization by the Province of Ontario.
 
The MR-90 was just made for Montreal in the 90's....a whopping 58 were made.
They were made in Thunder Bay? I'd have guessed La Pocatiere.

The Bi-level coaches have 2 factories for North America, one in Thunder Bay and the other in Upper NY State.
In Plattsburgh? I thought that they only did interiors there - and again I would have guessed La Pocatiere for most of the coaches (in fact, I'm surprised the don't do a lot of the GO coach metal work in La Pocatiere.)

So how much money over the years have we pumped into the Thunder Bay plant? And why is it there? It's there because it's where rail cars ended their journey 50 or 100 years ago when they delivered wheat to waiting Great Lake vessels. A factory needs to have a competitive cost adantage such as the material (steel in Hamilton), labour (India or Mexico), tech development expertise (Montreal in this case), close to the buyer (Toronto) or cheap hydro. The only cost advantage this plant has is subsidization by the Province of Ontario.
Is there much subsidization going on any more? There's nothing in the vehicle tendering that stops anyone else in Ontario underbidding Bombardier - and they tried this with the 400-car streetcar order (between the legacy and Metrolinx models), but Bombardier beat the next bid by a long-shot.
 
I wasn't aware that anything else still existed in Ontario! Doesn't look as though they've done any passenger equipment since the 1950s though.

NSC has turned out to the one of the largest freight car manufacturers, but yes, the last passenger cars they made were in 1959.

Where were the Bombardier MR-90s EMU that are used on the AMT Deux-Montagnes line made?

La Pocatière, QC. South shore, a bit east of Montréal.

Hmm, and where do they manufacture the ICTS equipment (Vancouver Skytrain, etc.).

Millhaven, just west of Kingston. A lot of assembly was done at Vancouver for their respective orders, however.

I might have asked this before, but does the TTC get compensated for the fact that Bombarider has f'd this order up so royally?

I don't know how you could say that they've "...f'd this order...", but yes, the TTCs and Bombardier's lawyers are in regular contact about things like this.

There has been limited success IN THE PAST across Canada (and there better be success for the home province of BBD)! The MR-90 was just made for Montreal in the 90's....a whopping 58 were made.

Of course, the MR-90 was also the basis for the M-7, of which almost a thousand were made. So, they seem to have done okay with them.

The Bi-level coaches have 2 factories for North America, one in Thunder Bay and the other in Upper NY State.

Bombardier has a number of plants across North America, and they specialize on specific products and processes. La Pocatière, for instance, is their base of operations for sales in Quebec, and specializes in welding large stainless steel bodies. All of the bodies for the TRs, for instance, and built there. Thunder Bay does large aluminum structures, and assembles almost everything for Ontario. Most of the other plants - Plattsburg in New York, for instance - only do the final assembly to meet whatever the quotients are required for the sales to those states. They have no capability to produce the large structures necessary for things like car bodies.

They produce a similar model in Germany for the European market.

It may look similar but structurally (and developmentally) they are not even remotely close to being similar.

BBD has made about 1000 in Thunder Bay. The only other major (>100) purchase was for California. They are no lonter buying these cars and are switching over to a competitors product. So Thunder Bay is left with GO and a few smaller fleets.

Not quite. In the last 4 years, they've filled orders for Vancouver (WCE), Salt Lake City (Frontrunner) and Florida (Sun Rail), as well as the cars they've built for GO. That also ignores the fact that since the economic crash in 2008 there simply hasn't been as many commuter car orders for the whole industry as there had been prior to that. Look at all of the smaller commuter operations that have started up in the past 6 or 7 compared to those prior to that.

And yes, they lost the Los Angeles (Metrolink) order in 2006, sure, but that's why they've designed their own competing CEM product based on the BiLevel design.

The ICTS is a perfect example of why the government Ontario fails when creating home-grown tech. The province owned the technology and sold it for pennies to BBD. BBD made a few trains for Toronto, Vancouver and Detroit in Thunder Bay. But they now have the technology expertise in Montreal and factories making the next generation ICTS in far off cheaper places such as Gujarat India where they have produced almost 1000 cars.

While that's kind of the gist of what happened, it is also a hell of a lot more complicated than that. For instance, Bombardier purchased the transportation manufacturing assets from Lavalin - who in turn purchased UTDC from the Province in 1986 - in 1991, well after the systems in Detroit, Toronto and Vancouver had been up and running. The PUTRA LRT in Kuala Lumpur was the first system that Bombardier sold - in 1994.

And "...produced almost 1000 cars."? Last I checked, 600 is no where close to 1000.

So how much money over the years have we pumped into the Thunder Bay plant? And why is it there? It's there because it's where rail cars ended their journey 50 or 100 years ago when they delivered wheat to waiting Great Lake vessels. A factory needs to have a competitive cost adantage such as the material (steel in Hamilton), labour (India or Mexico), tech development expertise (Montreal in this case), close to the buyer (Toronto) or cheap hydro. The only cost advantage this plant has is subsidization by the Province of Ontario.

That is not even close to being close to the reality of the situation, in any respect. Look up the history of companies like Canadian Car & Foundry, Dofasco and A.V. Roe, and you'll begin to get an idea as to why it was located there.

By the by, you know why companies like Honda and Toyota regularly pass up opportunities to have new plants built for them in places like Tennessee? Yes, labour is cheaper there, but it's also of lower quality. In Ontario, the labour force is of a sufficiently high quality as to justify the additional costs of doing business up here.

Dan
Toronto, Ont.
 

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