Despite ‘Chronic Quality Issues’ MBTA to Waive Penalties and Pay $148 Million More to Chinese Train Manufacturer

The Massachusetts Rapid Transit Authority (MBTA) previously criticized China’s state-owned train manufacturer CRRC for producing subway cars of poor quality and repeatedly delaying deliveries. Now, the MBTA has not only dropped its contractual claims against CRRC but also intended to make an additional payment of up to $148 million to cover rising costs caused by the pandemic and supply chain problems. Under the contract signed in 2014, CRRC’s facility in Springfield, Massachusetts, was to build 152 Orange Line subway cars and 252 Red Line cars for the MBTA. The delivery date for the Orange Line cars was scheduled for early 2022, and the delivery date for the Red Line cars was scheduled for summer 2023. Under the original contract, CRRC could be fined $500 for each day each car is delayed if CRRC caused the delay....