MONTREAL -- Bombardier has won a contract from Israel Railways for 62 electric locomotives valued at US$260 million, the railway said Thursday.

The Montreal-based company's transportation division was selected over several international rivals including Alstom and Chinese bidders.

The contract includes options for 16 more locomotives.

The locomotives are due to enter service in 2017 and operate on the new Tel Aviv-Jerusalem line.

Israel Railways is undergoing a US$3.6 billion electrification of its network that will convert 420 kilometres of railway tracks.

The locomotives can haul up to eight double deck cars or 12 single deck cars that can hold up to 1,400 people and travel up to 160 kilometres per hour.

Israel Railways is also in the process of buying 330 new double deck railway cars.

A Bombardier spokesman declined to comment because the contract has not yet been signed.