METRO Magazine Logo
MenuMENU
SearchSEARCH

Transit Market Primed For Growth In Rail Services

Railcar refurbishing, as well as outsourced maintenance and operations, is picking up momentum as public agencies put a premium on cost efficiency and convenience.

by Steve Hirano, Editor
February 15, 2007
4 min to read


Rail operators are finding that third-party services can help to control costs, increase efficiency and provide technical expertise that might not be available in-house.

These services are available through a number of providers, but railcar manufacturers such as Bombardier Transportation and Alstom Transportation are strengthening their positions in the rail services sector.

Ad Loading...

The decision by Bombardier late last year to acquire certain assets of Transportation and Transit Associates LLC (TTA) signaled the company’s interest in expanding its railcar refurbishment and overhaul services. The move was favorably timed. According to Bombardier officials, growth in third-party rail services in North America — from car overhaul to maintenance and operations — is on the horizon.

“It’s not by happenstance that we timed this acquisition,” says Mike Hardt, Bombardier’s vice president of services, North America. “If you look at the aging rail fleets that are out there today in North America, you will find that the overhaul business has multibillion-dollar market potential.”

Further down the line, Hardt says, the large batch of new railcars that have been put into service over the past five years will be needing rehab in the next 10 to 12 years. “So if you roll the clock forward, those cars will be ready for our overhaul business,” he says.

Hardt adds that some railcars are being slotted for upgrades and retrofits, long before they’re ready for overhauls. The upgrades can include improvements in customer amenities, security systems and diagnostic and trouble-shooting capabilities.

The acquisition of the TTA assets significantly expands Bombardier’s overhaul presence in North America, which currently includes operational capabilities in Dansville, N.Y.; San Diego; Thunder Bay, Ontario; and Sahagun, Mexico. TTA, headquartered in Bath, N.Y., is a rebuilder and assembler of rail transit vehicles, systems and components for the North American market.

Ad Loading...

Hardt says the acquisition, which includes land, equipment, facilities, staff and a test track, puts the finishing touch on the company’s bid to become a full-portfolio rail service provider, by offering new cars, operations and maintenance, parts and support, and overhaul.

Meanwhile, Alstom Transportation has the largest presence in the railcar overhaul market in North America. According to its own data, it has a 73% share of the market for overhaul projects between 2000 and ’06.

Roelof van Ark, president of Alstom’s NAFTA region, views the refurbishment market as steady, but not necessarily growing. “Many of the larger fleet transit authorities have already refurbished their older model cars or are in the process of refurbishing them,” he says. “For example, Alstom is currently working on two large-scale rehab projects for the Washington (D.C.) Metropolitan Area Transit Authority [364 subway cars] and the Metropolitan Atlanta Rapid Transit Authority [238 rapid transit cars].”

Technology’s influence
The maintenance end of the business also presents opportunities for third-party service providers. In fact, Alstom sees this segment as more robust than the overhaul market.

“Alstom believes there should be an upturn in the demand for maintenance services to be provided by the private sector to some of transit agencies,” van Ark says. “As transit cars include more high technology, and as some transit agencies concentrate on their core business — namely operating their fleet — transit agencies should see the cost benefit of sub-contracting maintenance to third parties.”

Ad Loading...

Van Ark says the trend of outsourcing maintenance of rail services is strong all over the world and that North America should not be an exception. “In the meanwhile, we can also be helpful in managing the supply of parts and overhaul kits for agencies that do their own maintenance, which we are doing for Amtrak’s Acela passenger train line,” van Ark says.

Michael Shaman, vice president of operations and maintenance for Bombardier’s Total Transit Systems division, says the demand for greater punctuality is growing, along with improvements in security. “The bar for performance is rising all the time,” he says.

Bombardier, which has a dozen operations contracts in North America, mainly for airport applications using peoplemovers, says customers benefit from the technical expertise that contractors can provide, both in maintenance and operations. “We bring added value of our experiences worldwide,” Shaman says. His division employs more than 1,000 employees in eight countries.

“Our greatest challenge is continuous improvement,” Shaman adds. “Customers are demanding more for less these days, and performance requirements are going up.”


Topics:Management
Subscribe to Our Newsletter

More Management

Bus manufacturing image from ENC
Technology•by Alex Roman•September 25, 2026

ENC Lands MATA Contract and More in Biz Briefs

In this edition of Biz Briefs, we spotlight the latest developments shaping the future of mobility.

Read More →
Management•September 24, 2026

From Surviving to Thriving: Building Stronger Transportation Organizations

Bus Business Consultants founder Brian Dickson shares lessons on leadership, organizational health, and creating options for long-term success in a changing transportation industry.

Read More →
Everett Transit and Community Transit buses
Management•by Alex Roman•September 23, 2026

Everett Transit, Community Transit Outline Consolidation Agreement

The proposed agreement calls for a 50% increase in bus service in Everett, a new microtransit zone, continued paratransit service, and the transfer of Everett Transit operations to Community Transit.

Read More →
Ad Loading...
Turning transit data into better decisions
Management•by Alex Roman•September 23, 2026

Strada360’s Steve Lassey on Turning Transit Data Into Better Decisions

From breaking down data silos to preparing for AI, Strada360 CEO Steve Lassey discusses how transit agencies can use technology to improve operations, customer information, and long-term decision-making.

Read More →
Phil Washington from HNTB
Management•by Alex Roman•September 23, 2026

People Movement: Phil Washington Joins HNTB, Denver RTD Launches CEO Search, and More

In this edition, we also spotlight recent personnel moves at STV, the Eno Center for Transportation, and more, highlighting the people taking on new roles across the transportation industry.

Read More →
SEPTA Accelerate press conference
Management•by Staff and News Reports•September 23, 2026

SEPTA Details Accelerate Vision for Transit System

The plan outlines investments in trolley modernization, new Metro and Regional Rail vehicles, accessible stations, and more frequent bus and rail service.

Read More →
Ad Loading...
Two MBTA railcars in station.

FTA Ends Direct Oversight of MBTA Safety Actions

The federal agency closed its remaining special directive to the Massachusetts Department of Public Utilities following a safety review that began in 2022.

Read More →
A WMATA bus at a transit center
Bus•by Alex Roman•September 21, 2026

Report: Transit Bus Manufacturing Supports 34,100 Jobs, $5.1B in GDP

The “Buses Mean Business” report examines the transit bus manufacturing industry’s economic footprint, supply chain, and rising demand for vehicle replacements.

Read More →
LIT 10-Year Anniversary Graphic
Management•by Alex Roman•September 17, 2026

LIT Marks 10-Year Milestone at Annual Summit

Hosted by the COTA from September 10 to 13, the Summit carried the theme “Celebrating 10 Years of Excellence, Leadership, and Impact,” with every part of the program honoring the people, agencies, and partners who built LIT over its first decade.

Read More →
Ad Loading...
Third Generation Joins Dan Dipert Coaches Leadership Team
Management•by Alex Roman•September 17, 2026

People Movement: Dan Dipert Coaches Adds Third-Generation Leader, Keolis Names New Valley Metro VP/GM, and More

In this edition, we also cover recent appointments and announcements at the Wabtec, SilverRide, HNTB, and more, showcasing the individuals helping to shape the future of transportation.

Read More →