Canada listed Bombardier (TSE:BBD) is set to sell trains to Israel Railways as it transitions to electic operations.
The deal announced today is said to be worth US$340mln.
The firm said its TRAXX locomotives will be mainly used to power Israel's fleet of 369 Bombardier double deck coaches already in use.
The first deliveries are earmarked for the end of next year (2017).
Chief executive of Israel Railways Boaz Tzafrir said: "The Israel Railways electrification project is advancing and becoming a reality.
“The transition to electric operation, a standard practice in all advanced countries, will be a significant leap forward.”
The agreement includes an option for an additional 32 locomotives.
Bombardier shares in Toronto were unchanged at C$1.58.