BBD.B Bombardier Inc

By Paul Berger 

Metropolitan Transportation Authority board members on Monday scolded contractors over significant delays to the installation of a safety system across the authority's commuter rail lines, placing it at risk of missing a federally mandated deadline.

"Your reputation as viable, aggressive, competent and willing partners in work depends on what you do here," board member Charles Moerdler told the officials during the meeting at the MTA's headquarters in lower Manhattan

The companies, Bombardier Inc. and Siemens AG, were awarded a joint contract totaling $428 million in 2013 to install the system on the Long Island Rail Road and the Metro-North Railroad, two of the busiest in the U.S.

The projects have suffered a series of setbacks because of understaffing by the contractors as well as software and hardware failures. Those failures include the recall of antennas that were installed on more than 1,000 rail cars and that were later found to be defective.

"It was a novice error and we did not believe we had hired novices," MTA board member Susan Metzger said.

Paul Eliea, the program director for rail-automation projects at Siemens Mobility, a division of Siemens AG, said that at least one employee was fired over the antenna issue. "We are sorry for it and have taken the correct steps to address it," Mr. Eliea said.

Congress mandated the installation of the safety system across passenger and freight railroads in 2008 following several fatal train crashes. The system uses equipment on board trains and alongside tracks to monitor and automatically slow or stop a train that is speeding or that has entered the wrong stretch of track.

Initially, the nation's railroads were supposed to install the system by the end of 2015. When it became clear that most railroads couldn't meet that deadline, it was pushed to 2018 and railroads were given the ability to seek an extension through the end of 2020 as long as they met certain requirements.

Many railroads struggled to meet the 2018 deadline because of delays buying and installing equipment or complications that arose from designing customized software that is interoperable with other railroads that share the same tracks.

As of the end of 2018, only four of 41 railroads required to install the system had completed the work, according to the Federal Railroad Administration.

Deborah Chin, an MTA official who oversees the safety system's implementation, told board members that the LIRR and Metro-North are on course to meet the 2020 deadline. But Ms. Chin said they lack confidence in Bombardier and Siemens because of the companies' previous struggles with hardware and software issues.

Board members, some of whom have been at the MTA for more than a decade, said this was the first time they could recall asking contractors to address their committee. Neal Zuckerman, who led the charge for the officials to attend, asked for an assurance that the companies would meet the 2020 deadline.

Ronald Birkelbach, head of the signaling division of Bombardier for the Americas, said the projects had proven more complicated than the contractors anticipated. But he said that they have hired more workers and are confident that the deadline will be met.

Write to Paul Berger at Paul.Berger@wsj.com

(END) Dow Jones Newswires

February 25, 2019 16:58 ET (21:58 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.