NEWARK, N.J. — NJ Transit’s board has approved a bond issue to fund new locomotives and buses for the statewide transit network.
The board approved the $500 million in bonds, to be issued by the New Jersey Economic Development Authority, on Wednesday at its December meeting. This will fund 17 Bombardier ALP-45DP dual-power locomotives now under construction, as well as 600 buses on order for the nation’s fifth-largest transit operator.
The contract for the locomotives, and slated to arrive next year, was valued at $184 million when agreed to in 2017. [See “NJ Transit has a holiday present for its riders: new locomotives,” Trains News Wire, Dec. 14, 2017.] They will join 35 ALP45-DPs already operating, and replace 29 of the oldest of the agency’s rebuilt GP40 locomotives, some of which date to 1965. The remaining GP40s will be rebuilt again for further service.
The bonds do not need voter or legislative approval, enabling the adminstration of Gov. Phil Murphy to avoid a state requirement that long-term debt issues totaling more than 1% of annual spending be approved by state voters.
NJ Transit president and CEO Kevin Corbett said after the board meeting that the bond maturities would be 28 years, the expected operational life of the new equipment.
NJ Transit will make lease payments to the economic development authority.
I hope that some of those oldies getting retired are sent museums! They really have a history with New Jersey, and with other railroads.