GE Transportation signs locomotive and service agreements valued over $900 million in Kazakhstan
GE Transportation (NYSE:GE) signed two contracts, valued at over $900 million, with Kazakhstan’s state-run railroad Kazakhstan Temir Zholy (KTZ) – the company’s largest international rail customer – as part of its long-term commitment to develop the country’s railway infrastructure. The contracts include the delivery of 300 shunter locomotives and an 18-year service agreement to manage the maintenance and repair of 175 passenger Evolution™ Series locomotives.
Shunters are used in rail yards to 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 years.
“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 modernize and service the legacy diesel-electric fleet, as well as produce new freight and passenger Evolution Series locomotives in Astana.”
“The agreements, signed during President Nazarbayev’s visit to the United States, are aimed at further modernizing 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.”
The agreements are the latest in a long history of collaboration between GE Transportation and KTZ, which includes: the delivery of more than 400 modernization 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 8 passenger locomotives have been built to-date; and long-term service deals in 2009 and 2011 for the modernized and Evolution fleets.
“Our mission is to build economies through innovation and modernization. Since its independence in the early 90s, Kazakhstan has demonstrated great economic progress, and GE Transportation is proud to have been a part of the country’s transformation journey from the start,” said Rafael Santana, CEO of GE Transportation. “Our new agreements with KTZ reflect our ongoing commitment to partner with Kazakhstan to build a world-class rail industry that serves the region and beyond.”
At GE Transportation, we are in the business of realizing potential. We are a global technology leader and supplier of equipment, services and solutions to the rail, mining, marine, stationary power and drilling industries. Our innovations help customers deliver goods and services with greater speed and savings using our advanced manufacturing techniques and connected machines. Our digital solutions, which provide data-driven insights to improve efficiency, leverage Predix – GE’s cloud-based operating system for the Industrial Internet. Established more than a century ago, GE Transportation is a division of the General Electric Company that began as a pioneer in passenger and freight locomotives. That innovative spirit still drives GE Transportation today and is strengthened by our ability to serve customers more holistically through the GE Store – a global exchange of knowledge, technology and tools across all GE businesses that ultimately provides better outcomes for customers. GE Transportation is headquartered in Chicago, IL, and employs approximately 10,000 employees worldwide.
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