GE Transportation and Ukrainian Railways have reached a $1 billion framework agreement after fifth months of negotiations.

The deal includes the supply of 30 TE33A diesel locomotives to Ukrainian Railways, additional locomotive kits over 10 years, the rehabilitation of locomotives in the railway’s legacy fleet, and long-term maintenance services.

The deal, penned by president Petro Poroshenko and GE Transportation Rafael Santana, is GE’s largest in Ukraine and marks a significant milestone in the two parties’ 80-year history.

Production of the locomotives, which feature a 12-cylinder, 4,500-horsepower GE Evolution Series engine, will begin the United States in early 2018 with the first delivery expected in the autumn. GE said that some work will be localised in Ukraine.

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A TE33A locomotive in Kazakhstan. Photo: Kabelleger / David Gubler.
A TE33A locomotive in Kazakhstan. Photo: Kabelleger / David Gubler.

Ukrainian Railway chair Yevgen Kravtsov said that the investment launches a large-scale modernisation of the national operator’s fleet of locomotives following a number of years of inactivity.

Yevgen said: “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.”

Rafael Santana added: “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.

“We appreciate the continued trust and support of our partners in Ukraine, including the Ministry of Infrastructure, UkraineInvest, the Office of the National Investment Council, and Ukreximbank. With this agreement, GE will play a larger role in helping the region improve its rail infrastructure and bring products to market faster and more efficiently.”

Photo: GE Transportation.
Photo: GE Transportation.

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