The Washington Metropolitan Area Transit Authority (WMATA/Metro) and Kawasaki Rail Car, Inc. announced they have reached a global resolution to several long-running contract disputes tied in part to the 2021 Blue Line derailment involving a 7000-series railcar, an incident that led to the temporary removal of the entire 7000-series fleet from service.
A multiparty investigation led by the National Transportation Safety Board found that wheel migration on the 7000-series railcars contributed to the derailment. The investigation did not assign responsibility for the cause of the wheel migration. Both Metro and Kawasaki Rail Car denied responsibility or contractual liability for the issue and other technical matters that are now resolved under the agreement.
Metro General Manager and Chief Executive Officer Randy Clarke described the agreement as a key milestone in Metro’s broader return-to-service efforts and credited Kawasaki Rail Car for its technical support throughout the process. Clarke said the resolution allows Metro to move forward without litigation while preserving a productive partnership focused on safety, reliability, and long-term fleet performance.
Under the settlement, Metro’s remaining contractual payment obligations will be reduced by up to $35 million. The reduction is intended to offset Metro’s costs associated with technical changes to the 7000-series railcars, wheel migration mitigation efforts, and other unrelated work, while allowing funds to be redirected to additional capital and service projects. As part of the agreement, Metro will also release certain contractual payments to Kawasaki Rail Car tied to the successful completion of reliability and maintainability testing benchmarks and will reduce the company’s required performance bond.
Kawasaki Rail Car President and Chief Operating Officer Yusuke Hirose said the agreement reflects the company’s longstanding support for Metro’s 7000-series program, noting that the fleet has been in service for more than a decade and has demonstrated high levels of reliability and safe operation.
This year marks 15 years since Metro awarded the contract to Kawasaki Rail Car to design, manufacture, and deliver the 7000-series fleet. All 748 railcars have now been delivered. Based on recommendations from engineering experts involved in the NTSB review, Metro developed a plan to press wheels on the 7000-series fleet in-house using a higher standard. Metro and Kawasaki Rail Car previously disputed whether the original wheel-pressing standard was a design specification or a performance-based requirement. The remediation effort began in 2023 and is expected to be completed in second quarter 2026.
