To continue getting breaking news and the full stories from The Boston Globe, subscribe today.

The Boston Globe

Metro

MBTA presses firm for railcar delivery

Davis says first coaches should arrive in early ‘13

The MBTA’s Jonathan R. Davis

The MBTA’s Jonathan R. Davis

The acting general manager of the MBTA said Tuesday that he is “guardedly optimistic’’ that long-promised commuter rail coaches will arrive early next year and that all 75 cars ­ordered from a South Korean company will arrive by July 2014.

Jonathan R. Davis spoke in a telephone interview Tuesday from Changwon, South Korea, where he met with the top executives of Hyundai Rotem, which the Globe has reported has fallen about two years behind on manufacturing double-decker coaches planned to ­replace single-decker coaches dating back to the 1980s.

“I told them in no uncertain terms that they have to deliver on their most recent, revised schedule,’’ Davis said. “They ­also have to deliver quality cars.’’

He said the revised schedule for the $190 million contract now calls for the first wave of coaches to arrive in January or February, and that the final shipment will be in the United States by July 2014.

Continue reading below

“We are guardedly optimistic,’’ Davis said. “The proof is being able to deliver. And up to now, we have gotten promises. But they have failed to deliver. We are going to have to see if they live up to the commitment they have made to me, to the organ­ization, and our customers.’

Davis said Hyundai is now devoting two production lines at a “very large” facility to completion of the Massachusetts Bay Transportation Authority contract, and has 18 cars in various stages of completion.

He said it was not until ­recently, and only after prodding from the T, that Hyundai assigned a second production line to the T’s order.  

“They have applied additional resources to our project,’’ said Davis.

Davis said that under the contract, Hyundai faces a maximum of $18 million in penalties for missing deadlines, includ­ing a penalty for each day they are late in delivering the coaches. He said the T will seek to collect those penalties once the work is done, and the total amount of money, known as liquidated damages, will not be known until then.

“We will not make final payment until we have recovered our liquidated damages,’’ Davis said.

Davis said he met personally with M.H. Lee, the Hyundai ­executive in charge of the facility, and with other top managers. He said that during a meeting, the Hyundai executive ­expressed his disappointment at his company's performance.

“He is also expecting no further delays,’’ Davis said of Lee. “He is disappointed at having to face this within his organization. I want to say that he is probably also embarrassed that they have not been able to deliver.’’

Davis said he believes his trip was necessary to convince Hyundai executives how important the deal is to the MBTA and its customers and to reinforce the message that no further delays will be tolerated.

“My being here certainly has drawn the attention of the highest level of executives within Hyundai so they know how ­important this project is to us and to our customers,’’ he said.

He said Hyundai has contracts with transportation agencies around the world and elsewhere in the United States, includ­ing Philadelphia, California, and Denver.

John R. Ellement can be reached at ellement@globe.com.