GE Transportation signs over $900 million locomotive and service agreements

GE Transportation has signed two contracts, valued at over $900 million, with Kazakhstan’s state-run railroad Kazakhstan Temir Zholy (KTZ) for the delivery of 300 shunter locomotives as well as an 18-year service agreement.

The contracts demonstrate both companies’ commitment to the development of the country’s railway infrastructure. GE Transportation will manage the maintenance and repair of 175 passenger Evolution Series locomotives for at least the next 18 years.

Used in rail yards, shunters assemble trains and make short hauls. The first two shunters are expected to be delivered in 2019, with the remainder to be delivered over the next 10.

“We have a long history of successful, effective cooperation with GE Transportation and we see great potential to further develop our strategic partnership,” said Kanat Alpysbayev, Chairman of KTZ. “We selected GE technology to be the primary driver for developing Kazakhstan’s rail industry, and together we’ve introduced joint projects to modernise and service the legacy diesel-electric fleet, as well as produce new freight and passenger Evolution-series locomotives in Astana.”

“The agreements signed are aimed at further modernising our rail fleet and will expand the range of locomotives made in Kazakhstan to better meet the needs of the domestic market as well as countries in the broader CIS and Baltic region,” Alpysbayev added. “In addition, we are currently working on a number of projects under our Digital Railway Program, including deploying GE’s Trip Optimizer to improve the efficiency of freight transportation.”

Previously GE Transportation and KTZ have contractually agreed on the delivery of more than 400 modernisation kits in 1995, that extended the revenue-generating life of KTZ’s existing fleet by up to 20 years, the construction of the Evolution Locomotive Assembly plant in Astana in 2006, where more than 300 freight locomotives and eight passenger locomotives have been built to date, and long term service deals in 2009 and 2011 for the modernised and Evolution fleets.

“Our mission is to build economies through innovation and modernisation,” said Rafael Santana, CEO of GE Transportation. “Our new agreements with KTZ reflect our ongoing commitment to partnering with Kazakhstan to build a world class rail industry that serves the region and beyond.”