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Caterpillar loses challenge to high-speed rail contract

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, 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.

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