The Chicago Transit Authority (CTA) has awarded China Railway Rolling Stock Corporation (CRRC) a US$1.3-billion contract to build rail cars for Chicago in the United States

CRRC, the world's biggest train maker by revenue, will be building 846 railcars through its subsidiary, CSR Sifang America JV.

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In a statement posted on hits website, the CTA said CRRC's subsidiary won the contract after it submitted the lowest bid.

"This rail car purchase - the largest in CTA history - will give the CTA one of the newest fleets in the United States and provide our customers with state-of-the-art trains providing comfortable, reliable rides," said CTA president Dorval Carter Jr.

With the US$1.3-billion contract, the CRRC will build a new rail car assembly facility in Chicago. The facility is expected to provide 170 jobs for Chicago residents.

"The announcement is the culmination of nearly two years of collaboration with Mayor (Rahm) Emanuel to bring rail car manufacturing back to Chicago where it belongs," said Chicago Federation of Labor president Jorge Ramirez, who was among those praising the deal with CRRC.

The said factory, the first of its kind in Chicago in 35 years, is expected to produce its first cars in 2020.

The 846 new rail cars that the CRRC will build for Chicago will replace the old ones currently used.

Chicago operates eight subway lines with a length of 170 kilometers. Chicago has the second biggest public transport system in the United States, according to the official Xinhua news agency.

The deal is China's second in the US, following the one China CNR Corp. won in October 2014 worth USD$567 million to supply trains for Boston's subway system.

TagsChicago Train, Chicago Transit Authority, CRRC, China Train