MTA’s $1.5B Rail Upgrade: CBTC, R268 Cars, & Wabtec in NYC

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Introduction

The Metropolitan Transportation Authority (MTA) board in New York has approved a $1.507 billion contract for 378 new R268 subway cars, as announced by New York Governor Kathy Hochul. The funding for this procurement comes from the MTA’s $68 billion 2025-2029 Capital Plan, which was fully financed in the Fiscal Year (FY) 2026 Enacted Budget.

Vehicle Procurement

The approved contract covers the acquisition of 378 new R268 subway cars. These new models will replace the existing R68 and R68A cars on the ‘B’ division. The design of the R268s will be similar to the current R211 fleet. The new vehicles are expected to be equipped with security cameras, accessible seating, enhanced lighting, and clearer signage.

Integration with CBTC Systems

The new car procurement supports the ongoing transition to Communication-Based Train Control (CBTC) systems. The MTA plans for all cars on the ‘B’ division to be CBTC-compatible upon delivery completion. The anticipated benefits of these signaling upgrades include increased train frequency, improved operational reliability, and more precise real-time train arrival data.

Financial and Operational Benefits

MTA Chair and CEO Janno Lieber stated that the purchase will replace cars nearing the end of their service life. The procurement process, which builds on the R211 train car acquisition, has allowed the MTA to save costs on nearly 400 modern subway cars.

Signaling Upgrades and Funding

Current signal modernization projects are underway on various routes. Congestion pricing revenue will be allocated for additional CBTC implementation on the Fulton Street and Liberty Avenue Lines in Brooklyn and Queens, along with Manhattan’s Sixth Avenue Line. The 2025-2029 Capital Plan will further fund signaling improvements on additional lines in Manhattan and Astoria.

Locomotive Procurement

In January 2025, the MTA approved the use of Wabtec’s R255 hybrid battery-diesel work locomotives for subway maintenance operations. This decision follows a previous order placed with Wabtec in 2020.

Conclusion

The MTA has finalized a $1.507 billion contract for 378 new R268 subway cars, funded through its 2025-2029 Capital Plan. These cars are intended to replace older models on the ‘B’ division and integrate with CBTC systems. The procurement also includes the use of Wabtec’s R255 hybrid battery-diesel work locomotives for maintenance.

Company Summary

Metropolitan Transportation Authority (MTA): The MTA board approved a $1.507 billion contract for new subway cars. The MTA’s $68 billion 2025-2029 Capital Plan is the source of funding. The MTA plans for all cars operating on the ‘B’ division to be compatible with CBTC once deliveries are complete.

Wabtec: Wabtec’s R255 hybrid battery-diesel work locomotives are approved for the MTA’s subway maintenance operations. The agency placed an order with Wabtec in 2020.

Technology

Communication-Based Train Control (CBTC): The new R268 models are intended to facilitate the ongoing conversion to CBTC systems. The MTA anticipates that these signalling upgrades will support increased train frequency and improved operational reliability, as well as provide more precise real-time train arrival data. Funding from the 2025-2029 Capital Plan will enable further signalling improvements on other identified lines.

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