The Queensland state government has chosen the Bombardier NGR consortium to manufacture 75 new six-car trains for the Queensland Rail network.
The Courier Mail reports that the trains will be built overseas by the German-based consortium. Work will start from late 2015.
Announcing the successful bidder yesterday, Premier Campbell Newman said that a Queensland bidder, Downer at Maryborough, was initially part of the tender process but chose to withdraw.
"Having said that, they have got contractual work from this government (for the new Sunlander and tilt train carriages)," Newman said.
He said that the cost of the project would be far less than was expected under the previous Labor government.
The new trains will be suitable for use on the combined rail and bus river tunnel which the government has announced.
The project will merge Cross River Rail with Brisbane City Council's Suburbs 2 City bus plan. It will involve a 5.4 km tunnel that will run from Dutton Park in the south, past new stations at Woolloongabba, George Street and Roma Street, to Victoria Park in the north.
This isn't the first time in recent memory that an overseas manufacturer has been appointed to fulfill an Australian rail contract.
Just last week, Tasmanian state-owned business TasRail did not choose a Tasmanian manufacturer to replace 200 of its train wagons because the Chinese firm that won the contract offered a significantly lower price.