New York's MTA creates $12 billion unit to modernize aging fleet

Investing.com -- New York City's Metropolitan Transportation Authority (MTA) is establishing a new unit to manage a $12 billion initiative to replace aging trains and modernize its bus fleet.

Jessie Lazarus, who previously led the MTA's transition from MetroCard to the OMNY tap-and-go fare system, will head the new Rolling Stock Program. The team of approximately 10 staff members will focus on performance-based specifications for manufacturers rather than prescriptive design requirements.

The MTA plans to purchase about 1,500 subway cars, more than 500 commuter-rail cars, and roughly 2,200 buses under its 2025-2029 capital program. This rolling stock initiative represents nearly 20% of the agency's $65.4 billion capital plan through 2029.

"This is one of the largest investments in manufacturing that's happening in America," Lazarus said. "And we should think about our power to structure policies that can stabilize the supplier base for the benefit of domestic public transit."

Many of the MTA's rail cars date back to the 1980s and are approaching the end of their useful life. According to the agency, older trains break down approximately six times more frequently than newer models. About 40% of the bus fleet will also be eligible for replacement in the coming years.

The MTA aims to expand the domestic manufacturing base and increase competition among suppliers, with Lazarus describing the agency as "truly the market maker" that must be strategic about capital deployment and rail production capacity.

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