New York’s Metropolitan Transportation Authority has purchased 300 new rail cars for $600 million.

Montreal-based Bombardier will build the cars in Plattsburgh, N.Y. The MTA’s board of directors approved the contract last week.

The R-179 cars, which are due for testing in late 2014 and for delivery in late 2016, will replace the oldest subway cars now in use.

The cars will be financed by $306 million in federal funds already in place in the MTA’s recently completed capital plan, as well as other pending and future federal grants.

“This order is a win-win — it will improve service for the millions of transit riders in New York City, while preserving jobs for our fellow New Yorkers in the North Country,” said MTA chairman and chief executive Joseph Lhota.

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