Caterpillar Inc. has lost a challenge to a lucrative contract for high-speed rail locomotives awarded to rival Siemens Industry Inc.
Caterpillar’s appeal of the $226 million contract for diesel-electric locomotives was rejected Thursday by the Illinois Procurement Policy Board, chicagobusiness.com reports.
Caterpillar owns Electro-Motive Diesel Inc. in LaGrange, a global supplier of locomotives. Winning the initial contract gives Siemens the right to supply up to 225 additional locomotives, orders that could add up to $1.5 billion.
The Peoria-based heavy-equipment maker was expected to have an advantage in the awarding of the locomotive contract because Illinois handled the contract award for a group of states.
A lawsuit challenging the contract is pending.
Caterpillar lost an attempt to overturn a rival's $226M state contract for high-speed rail locomotives: http://t.co/nvFIymJmBL
— Crain's Chicago (@CrainsChicago) May 16, 2014
Caterpillar misses out on high-speed locomotive contract
