Ukrainian Railways, Ukrzaliznytsya, and GE Transportation signed a USD 1 billion framework agreement for the supply of 30 GE Evolution Series freight locomotives, as well as additional locomotive kits over 10 years. In addition, the agreement includes the rehabilitation of Ukrzaliznytsya’s locomotives and long-term maintenance services.
“We’re happy that negotiations with GE progressed very quickly, wrapping up in just five months and leading to an unprecedented agreement. After many years of inactivity, this project will launch a large-scale modernization of Ukrainian Railway’s locomotive fleet. In addition to addressing Ukraine’s needs for greater capacity, this strategic partnership with GE will also provide a powerful impetus to further develop domestic manufacturing,” Yevgen Kravtsov, acting Chairman of the Board of Ukrainian Railways said.
Locomotive production is planned to commence in the U.S. in early 2018, with the first deliveries slated for this fall. In addition, certain work will be localized in Ukraine to boost job creation and economic development in the country.
“This deal demonstrates our expanding global customer base and is a promising step forward in our relationship with Ukrainian Railways, which can serve as a catalyst in attracting international financing and accelerating economic growth in Ukraine,” Rafael Santana, CEO of GE Transportation noted.
The agreement covers the modernisation of 75 older diesel locomotives and a localization degree of up to 40 percent of production and maintenance work.
The TE33A locomotives feature a 12-cylinder, 4,500-horsepower GE Evolution Series engine, delivering high power output, enhanced productivity, greater flexibility, lower lifecycle costs, and improved reliability in heavy-haul operations. Compared to the legacy Ukrainian fleet, the TE33A can significantly reduce harmful emissions, economize on fuel and oil costs, and increase time between maintenance overhauls.
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