(By Balaseshan) Europe's biggest engineering conglomerate Siemens AG (NYSE:SI) said it has received a multi-million dollar order to electrify Hawaii's first rail transit system.
The Munich, Germany-based company has received a multi-million dollar order from Ansaldo Honolulu JV to electrify the track for the new Honolulu rail transit system. The rail system is the first for the state and is scheduled to be completed in 2019.
The rail system will span 20 miles (32 kilometers) from East Kapolei to Ala Moana Center with 21 stations along the route, including Pearl Harbor and the Honolulu Airport.
Figures from the Honolulu Authority for Rapid Transportation (HART) reveal that by 2030, if rail is not put into operation, the number of car trips per day will increase by 40,000 on Honolulu's highways and streets.
Rail would reduce daily traffic by about 30,000 vehicles and decrease delays due to congestion by an estimated 18%. It is also projected that about 10,000 jobs will be created as a result of the construction.
Siemens would supply 14 traction power DC rectifier substations at 750 volts and two tie breaker gap substations. The order also includes the emergency stop equipment at the metro depot and all stops on the line.
The Honolulu rail transit system would be an elevated rail system, separated from ground transportation, allowing for faster, safer and more reliable performance than alternatives built at ground level, but less expensive than an underground system.
According the U.S. Department of Energy, rail is more energy-efficient than single-occupant cars and trucks, consuming 37% less energy per passenger-mile.
Siemens' rail electrification portfolio includes products, systems and solutions in the areas of traction power supply, contact lines and network control technology for mass transit and mainline rail systems as well as for industrial applications.
SI is trading down 0.02% at $84.87 on Tuesday. The stock has been trading between $77.88 and $126.84 for the past 52 weeks.