BOSTON — A Japanese high-tech corporation has filed a $158 million federal lawsuit against the MBTA, claiming the public transit agency violated the terms of a contract to install a new safety system on the commuter rail network.
The lawsuit filed in U.S. District Court alleges that the T made changes to the contract to install a Positive Train Control system along the commuter rail tracks that drove up the cost of the project by hundreds of millions of dollars, but refused to compensate the company for the additional costs.
“Despite Hitachi Rail’s repeated demands and attempts to resolve the claims detailed below, Defendant MBTA has failed and refused to issue Change Orders, to acknowledge delays, or to compensate Hitachi Rail for the costs and other impacts incurred by Hitachi Rail in connection with the same, in breach of the Contract,” the complaint states.
The T is under a federal mandate to install the system on all of its 15 commuter rail lines. The technology uses antennas on locomotives, radio towers and track sensors to monitor train speeds and locations to prevent collisions.
Hitachi’s predecessor, Ansaldo STS, was awarded a $338 million contract in 2015 for the work but alleges that the MBTA required the company to perform additional work “beyond the contractual obligations” and then later “refused to pay for it.”
The company cited the example of the Gloucester Drawbridge Project, alleging that the MBTA failed to issue a change order or pay for the additional work to install safety systems along that new section of commuter rail track.
The MBTA said it is reviewing the complaint but argues it has “no impact on the MBTA’s ability to work closely with the contractor and deliver a project that improves safety for both customers and employees of the commuter rail system.”
“While the MBTA continues its efforts to resolve any outstanding issues with the contractor, the work of accomplishing these important safety enhancements is in its final stages, and both parties are firmly committed to ensuring the project is successfully completed,” the T said in a statement.
The project is part of a long-delayed federal mandate to equip the nation’s rail lines with the Positive Train Control system, which is designed to prevent train-on-train collisions, speed-related derailments and other safety issues.
In 2008, Congress approved the mandate in response to a series of deadly train crashes involving speed and other rail safety issues.
Initially, the federal government set a 2015 deadline for freight railroads covered by the law to implement it, but under industry pressure congressional lawmakers have pushed back the deadline several times.
In the lawsuit, Hitachi claims that in Massachusetts the safety upgrades have been plagued by problems stemming from the MBTA’s handling of the project.
“These include delays driven by the aforementioned changes to the contractually agreed work, ongoing lack of MBTA supplied flagger support necessary for Hitachi Rail to perform work in the right of way, MBTA track access denials, MBTA mandated re-sequencing and COVID-19 impacts,” the complaint states.
The T is also under a congressional mandate to install the Automatic Train Control system on all of its commuter rail lines by this year.
Similar to PTC, the system uses satellites and wayside radio signals to monitor trains. If any problems are detected — such as excessive speeds — on-board computers can take over to slow a train or bring it to a complete stop.
Nationwide, the rail industry has spent nearly $14 billion installing train control equipment over the past several years, according to the Federal Railroad Administration.
The National Transportation Safety Board says the technology could have prevented 145 railroad accidents, saved an estimated 300 lives and averted more than 6,700 injuries over the past 45 years.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at [email protected].
By Christian M. Wade | Statehouse Reporter
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