The Metropolitan Transportation Authority approved a $1.5 billion noncompetitive contract with Kawasaki Rail Car for 378 new subway cars, Nikkei reported, bringing the agency’s total spending with the Japanese manufacturer to $5.5 billion as it races to replace aging trains.
The R268 model cars, set for delivery between September 2028 and May 2030, will replace trains from 1986 that transit officials say break down with increasing frequency. Kawasaki will assemble the vehicles at its Nebraska facility, with some components sourced from Japan.
The procurement marks the first installment in the MTA’s $7.6 billion plan to purchase 1,500 new subway cars over five years. Transit officials cited the need for speed in awarding the contract without competitive bidding, noting that federal Buy America requirements limit options to just two manufacturers: Kawasaki and France-based Alstom.
The decision carries risks. Kawasaki experienced a 17-month delay on previous orders in 2022 due to labor shortages at its Nebraska plant. An earlier contract with Bombardier, now part of Alstom, resulted in $35 million in additional costs and missed deadlines, according to a city comptroller audit.
The new cars will feature surveillance cameras, digital signage, and wider doors designed to speed boarding. More critically, they’ll include communications-based train control technology that could eventually allow the MTA to run trains closer together and increase service frequency.
