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Be the first with the news that moves the market- NFI Group’s (TSX:NFI) subsidiary, New Flyer of America, will manufacture 26 Xcelsior buses for San Diego’s Metropolitan Transit System (MTS)
- The buses are powered by compressed natural gas (CNG), which is much more environmentally friendly than alternative fuels
- The MTS has exercised options for the buses, as part of a five-year contract with NFI
- NFI subsidiary, New Flyer of America, is replacing San Diego’s older buses with newer, low-emission vehicles
- NFI Group (NFI) is down 2.5 per cent, and is currently trading at $15.58 per share
Bus manufacturer NFI Group (TSX:NFI) and its subsidiary, New Flyer of America, will add to San Diego’s growing Metropolitan Transit System.
San Diego’s Metropolitan Transit System (MTS) recently exercised options for 26 Xcelsior transit buses from New Flyer’s backlog. The buses are sixty feet long, heavy-duty and run on compressed natural gas (CNG).
MTS has an ongoing five-year contract with New Flyer, which it originally announced in February 2018. The options are a part of the contract, which covers delivery of up to 50 Xcelsior buses.
The contract’s order is gradually replacing older, end-of-life buses with newer, low-emission buses that are more efficient and sustainable.
The Xcelsior buses’ compressed natural gas (CNG) is an environmentally friendly alternative to current propulsion fuels. It emits 90 per cent less nitrogen oxide than diesel engines, thus improving air quality as it replaces older models.
In the last 25 years, New Flyer has delivered over 13,000 CNG buses across North America.
The company is likely to see plenty more sustainability business with MTS, which is actively supporting California’s climate action goals. San Diego’s Metropolitan Transit System has already started transitioning to low-emission and zero-emission solutions in light rail and bus divisions.
The MTS has also purchased 100 per cent renewable natural biogas, and installed solar power at 500 new bus shelters.
New Flyer’s President, Chris Stoddart, said the company appreciates the critical need for reduced greenhouse gas emissions and traffic congestion.
“The MTS team has established itself as a leader in the transition to low and zero-emission mobility.
“We are proud to support MTS in improving air quality, reducing climate change impact, and serving as part of San Diego’s multi-modal solution with CNG buses that are safe, clean, and reliable,” Chris said.
NFI Group (NFI) is down 2.5 per cent to C$15.58 per share, as of 1:03pm EST.
