Providence and Worcester Railroad Company ("P&W") (NASDAQ: PWX) confirmed today that part of yesterday’s press release by MBTA regarding P&W’s agreement with Motive Power, Inc. of Boise, Idaho concerning its bid to supply MBTA with twenty (20) new diesel electric locomotives for MBTA commuter rail service. In the press release, MBTA stated that MassDOT's Board of Directors had approved a contract with Motive Power, Inc. for the locomotives, which are expected to be delivered between spring and fall 2013.
Under the terms of a confidentiality agreement dated September 23, 2009, P&W agreed to keep confidential P&W's role as a potential supplier to Motive Power, Inc., among other terms. With award of the work to Motive Power, Inc. the next step is to finalize the terms by which P&W will complete certain services for Motive Power, Inc., including pre-delivery inspection, preparation and the commission of support services.
P. Scott Conti, P&W's President, said "We are excited that the bid has been awarded to Motive Power, Inc., with which we look forward to continuing a mutually advantageous relationship through a unique partnership, and for the opportunity to furnish our expertise to MBTA."
P&W is a regional freight railroad operating in the states of Massachusetts, Rhode Island, Connecticut and New York. P&W transports a wide variety of commodities, including automobiles, construction aggregates, iron and steel products, chemicals, lumber, scrap metals, plastic resins, cement, coal, ethanol, construction and demolition debris, processed foods and edible foodstuffs, such as frozen foods and corn syrup. By agreement with a private operator, P&W services an approved custom-bonded intermodal yard in Worcester, MA, primarily for the movement of container traffic from the Far East destined for points in New England.This release contains “forward-looking statements” within the meaning of section 21E of the Securities and Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties, including, but not limited to, changes in general economic condition, and changing competition which could cause actual results to differ materially from those indicated herein. Further information on these risk factors is included in the Company’s filings with the Securities and Exchange Commission.