VANCOUVER -- Bombardier Transportation says it has signed a deal with TransLink to build 205 new rail cars for Vancouver's SkyTrain network.

The contract is valued at $721 million and includes options for up to an additional 400 rail cars.

The new rail cars are being designed at Bombardier Transportation's North American headquarters in St-Bruno, Que., and its facilities in Kingston, Ont.

They will be assembled and tested in Kingston before they are tested again and commissioned by Bombardier employees in Vancouver.

TransLink CEO Kevin Desmond says it's the largest fleet procurement order it has ever undertaken.

Bombardier designed and supplied the original SkyTrain system.