Listen to this articleThe basics:
- NJ Transit orders $1.26B in rail cars and locomotives from Alstom
- Includes 200 Multilevel III rail cars, 12 dual-powered engines
- Modernization plan targets 2031 completion
- Fleet upgrades bring increased reliability, capacity, amenities
NJ Transit took a major step Sept. 9 toward its commitment and goal to modernize its rail fleet.
The agency fully exercised a contract option with Alstom for the approximately $1.055 billion purchase of 200 additional multilevel rail cars; as well as an additional 12 ALP 45 dual-powered locomotives, a $203.9 million purchase, that will replace some of NJ Transit’s older, diesel-only engines. The NJ Transit Board of Directors authorized the purchases in May 2025.
When combined with a previous order of 174 cars, NJ Transit’s total purchase order is up to 374 new multilevel rail cars. NJ Transit is aiming to fully modernize its rail and bus fleets by 2031.
Modern times
“Service reliability and safety is one of my highest priorities, and having a fully modernized rail fleet is one of the most critical ways to deliver on that commitment for our customers,” said NJ Transit President and CEO Kris Kolluri. “With this purchase of 200 new multilevel rail cars, which brings the total of new rail cars ordered since 2018 under the Murphy administration to 374, NJ Transit is taking a major step toward ensuring consistent, dependable service, while also putting us firmly on the path to achieving a fully modernized fleet by 2031 – a first in the agency’s history.”
“This significant investment in new multilevel rail cars is essential in delivering efficient service that New Jersey residents deserve,” said New Jersey Department of Transportation Commissioner and NJ Transit Board Chair Fran O’Connor. “Today’s action is another critical step toward building a transportation system that meets the needs of our state and supports our goal of increasing reliability.”
Key things to know:
- New Multilevel III rail cars will replace the aging Comet II, IV and V single-level cars
- Benefits include
- Dramatically increased mechanical reliability
- Additional seating capacity and accessibility
- Higher top speeds of up to 110 mph
- Safety and enhanced onboard amenities including USB charging ports
- Alstom Transportation will build the cars
- The contract has a remaining option for 50 more Multilevel III rail cars, which may be purchased at a later date
“Alstom is proud of our long-standing partnership with NJ Transit and this new order reaffirms our commitment to deliver NJ Transit passengers with safe, state-of-the-art railcars that will get them where they are going reliably and comfortably,” said Alstom Americas President Michael Keroulle. “These third-generation multilevel trains that we will start delivering to NJ Transit in the coming months are designed with energy efficient features, redundancy, and durability to maximize the value of NJ Transit’s fleet over its lifecycle.”
Gov. Phil Murphy said the investment reflects his administration’s unwavering commitment to providing New Jerseyans with safe, reliable and modern public transportation.
“By replacing outdated rail cars with state-of-the-art equipment, we’re not only improving the commuting experience for millions of riders, but also strengthening our economy, reducing emissions, and moving toward a more sustainable future,” said Murphy.
Stable funding, reliable service
Following an event to announce the start of construction on the renovations of the New Brunswick Train Station (which NJBIZ also reported on), Kolluri spoke to reporters about a slew of topics, including this order of new rail cars and the fleet modernization.
He noted the struggles transit agencies face around the country – pointing to SEPTA, MTA, San Francisco and others. Kolluri stressed how important having a stable funding source is for NJ Transit, via the corporate transit fee, which has been a flashpoint issue here in the Garden State.
“Every year, New Jersey Transit for the last 45 years has been like – OK, how do we make it to the next fiscal?” said Kolluri. In July, NJ Transit adopted its Fiscal Year 2026 budget with $789 million in funding through the CTF. “For the first time, we have a five-year funding source. So, what we’re doing under this governor’s leadership is to say – OK, if we have consistent funding for five years operating, how do you plan a capital and an operating budget so that it provides a kind of stability?
“Because, ultimately, stable funding leads to reliable service. Which is what we’ve been challenged with for 45 years. It’s a fact few people seem to understand or acknowledge. But, in my estimation, the funding is the foundation of reliable service.”
Promises kept
Kolluri said that allows the opportunity to make improvements to infrastructure and the fleet. He stresses that by 2031 – barring an unforeseen supply chain snafu – that every NJ Transit rail car will be a multilevel.
“We just executed a billion dollars’ worth of contracts with Alstom today to order another 200,” said Kolluri. “So that means we are just now in line to receive 374 brand new multilevel cars by 2031.”
He said that the commissioning of the previously ordered Multilevel III rail cars starts in December to test them out – and that they will hit full production mode by April 2026.
“That is unheard of,” said Kolluri. He also noted that NJ Transit took a delivery of new buses as well as revealed that the board will consider a measure on the last installment of buses at its next meeting this month.
“If that happens, we will then have met our promise,” to replace every single train car and bus, said Kolluri.
