Oregon Iron Works is getting into the streetcar business, after landing a contract to build a prototype for the city of Portland. Oregon Governor Ted Kulongoski made the announcement Friday morning inside a manufacturing bay at Oregon Iron Works in Clackamas. Standing next to him, Congressmen Peter DeFazio and Earl Blumenauer, Congresswoman Darlene Hoolley, Portland Mayor Tom Potter and other local leaders.

KGW

The Portland streetcar rides toward the Willamette River.

The new project makes OIW the first and only manufacturer of modern streetcars in the United States. The company has created a new subsidiary, United Streetcar, to produce the prototype for Portland.

“This project is a model for communities and industries across the state of Oregon,” said Governor Kulongoski. The project is expected to create at least 20 new jobs and up to 200 more in the future. The governor said it’s a shining example of a partnership between public and private sectors that creates economic benefits for businesses, individual Oregonians, and communities.

The streetcars will be built initially at the company’s Clackamas facility. The company plans to build a new manufacturing facility in the Portland Metro area as demand grows.

“I think there’s going to be significant demand over the course of the next 50 or 100 years because so many cities are looking at ways to revitalize their infrastructure as well as provide effective transportation,” said Corey Yraguen, president of Oregon Iron Works. He said between 50 and 70 cities in the U.S. are currently looking at streetcars as a way to develop their areas. He added many of them have visited Portland because it has become a hub for streetcar interest.

The requirements for the new cars are the same as the existing cars. That will allow them to run on the same tracks and cut down on maintenance.

The company expects to deliver the first prototype streetcar to Portland within the next two years. The city hopes to use the new cars as the lines expand.