Otis Worldwide Corporation completed the installation of 22 escalators and 57 custom Gen2® elevators across all 26 stations of Montreal’s Réseau Express Métropolitain (REM) light‑metro system and secured a five‑year service contract that includes out‑of‑hours maintenance and peak‑time support.
The REM is the largest mass‑transit project in Quebec in the last 50 years, connecting communities across Greater Montreal with a fully automated, driverless network. Otis’s equipment features energy‑saving ReGen drives, SCADA integration for real‑time monitoring, and automated evacuation capabilities, positioning the company as a technology leader in high‑traffic transit environments.
This contract reinforces Otis’s service‑centric business model, providing a predictable, recurring revenue stream tied to a major infrastructure investment. The long‑term service agreement is expected to generate steady income and could open doors to similar contracts in other transit projects worldwide, strengthening the company’s market position in the global elevator and escalator services sector.
CEO Judy Marks highlighted the importance of service contracts in Otis’s recent earnings, noting that the company’s “service flywheel” generated the highest organic sales growth and operating‑profit‑margin expansion this year. The REM project exemplifies that strategy, demonstrating how new equipment wins translate into long‑term service revenue.
Earlier in 2023, REM elevators had experienced nearly 30 breakdowns, largely due to passenger behavior such as holding doors. The new service contract gives Otis a structured framework to address maintenance challenges, improve reliability, and maintain the high safety and uptime standards required for a city‑wide transit system.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.