Two major train suppliers have pulled out of the running to provide vehicles and systems for Honolulu's planned rapid transit system.

That leaves three companies competing for the estimated $230 million city contract scheduled to be awarded next year. The vehicles and systems contract is a small part of the $5.4 billion rail project. However, the style of the rail cars chosen will determine much of the system's overall character.

Two companies that won't be providing the trains are Paris-based Alstom and Sacramento, Calif.-based Siemens Transportation Systems Inc. Both companies confirmed last week that they won't be bidding on Honolulu's project.

That probably makes the world's No. 1 train supplier, Bombardier Transportation, a favorite for the deal. So far Berlin-based Bombardier Transportation; Genoa, Italy-based Ansaldo STS and a consortium led by New York City-based Sumitomo Corporation of America are the only other competitors that have announced interest in the contract.

Siemens, which calls itself the nation's No. 1 maker of light rail vehicles, did not explain why it's not interested in the project. Alstom, which says it is No. 1 in the high- and very-high-speed train sector, said it decided not to bid on Honolulu's project based on the level of competition and the size of the city's contract.

"We took a look at this one and said, 'Yeah there's three real good competitors,' " said Charles Wo- chele, an Alstom vice president for marketing and business development. "We know them well, we compete with them. If our car fit better with the specifications and we had something that was a little closer fit, we'd go after it. But we're chasing some big projects in the Mainland right now and you can't chase them all."

CHOOSING STEEL-WHEEL

The city's selection of steel-wheel trains was based on factors such as reliability, safety, ride quality and cost. The decision to go with steel rail also was expected to attract at least five potential vehicle vendors, which was greater than any of the other alternatives such as magnetically levitated, rubber-tire and monorail vehicles. That's because five steel-wheel train makers — Alstom, Ansaldo STS, Bombardier, Mitsubishi-Sumitomo and Siemens — responded to a request for information from potential vendors issued by the city in 2007.

Toru Hamayasu, deputy director of the Honolulu Department of Transportation Services, defended the selection of steel-wheel technology.

"Mag-lev would not have had any competition," he said in an e-mail. "And there are only two companies that manufacture monorail, with no guarantee that either would respond.

"To bid or not to bid is a vendor's decision and is based on a number of factors. What's important to the city is the opportunity for competition and the steel-on-steel technology certainly best provides that opportunity," Hamayasu said.

City Council member Gary Okino said he was disappointed that Alstom wasn't competing for Honolulu's business.

"I think it's unfortunate — I mean, the more competition the better," he said. "But if we get three solid bidders, that's good. I don't know if anybody gets more than three or four" bidders.

Companies interested in bidding on the train and systems contract were required to submit preliminary information to the city by June 5. By the end of July, the city plans to select which companies will submit formal bids. The city expects to select a supplier in early 2010 and finish the full line from East Kapolei to Ala Moana by late 2018.

A $230M CONTRACT

The contract winner will be responsible for providing vehicles along with power, control and communications systems. The contractor also will be responsible for train operations and maintenance through 2028. The vehicles portion of the contract has an estimated value of $230 million.

State procurement law prevents the city from disclosing the number and identities of companies competing for city contracts until after the contract is awarded. However, competing companies can disclose whether they plan to bid on rail projects.

Sumitomo — along with Mitsubishi Heavy Industries, KinkiSharyo International, Thales Transport & Security and Wasa Electrical Services — combined to form a team of bidders that calls itself Honolulu Rail for Growth. Bombardier and Ansaldo STS separately have confirmed intentions to supply trains for Honolulu.

"We're very interested in the project and we submitted information," said John Fink, Ansaldo STS vice president for business development. "We showed our driverless capabilities in specifically Copenhagen (Denmark) because the Copenhagen system was the first rail driverless system in Europe (in 2002)."