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Las Vegas is one step closer to offering tourists — and residents — another transportation option.

On Sept. 21, Las Vegas Monorail Co. contracted Bombardier Transportation, through Bombardier Transit Corp., to design and build a driverless, urban monorail system east of Las Vegas Boulevard in the resort corridor.

The project’s capital cost is estimated at $354 million. Under contract terms, Bombardier would receive $200 million to design and build 36 M-VI cars, and electrical and mechanical systems. The company would earn an additional $56 million to operate and maintain the system for five years with an additional 10-year option. Consortium partner Granite Construction Co. would assume civil design and construction portions.

The planned four-mile, elevated, dual-monorail guideway system would connect seven stations, integrate two stations and re-equip about a mile of MGM-Grand Bally’s former monorail line. The fleet would comprise nine four-car trains, providing access to eight resorts and Las Vegas’ convention center.

The system is expected to enter revenue service in 2004.