GE Transportation has signed a $1 billion locomotive deal with Ukraine.
GE Transportation signed the $1 billion framework agreement in Ukraine, marking a major milestone in the country’s efforts to modernize its transportation infrastructure and strengthen its position as a key European rail hub and trade corridor.
The agreement, which is the largest ever for GE in the country, includes the supply of 30 GE Evolution Series freight locomotives to Ukrainian Railways, as well as additional locomotive kits over 10 years, the rehabilitation of locomotives in the railway’s legacy fleet, and long-term maintenance services. Ukrainian President Petro Poroshenko and Prime Minister Volodymyr Groysman presided over the signing ceremony alongside Rafael Santana, President & CEO of GE Transportation.
“We’re happy that negotiations with GE progressed very quickly, wrapping up in just five months and leading to an unprecedented agreement,” said Yevgen Kravtsov, acting Chairman of the Board of Ukrainian Railways. “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.”
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 further bolster job creation and economic development in the country.
GE spokesman, Tim Bader tells JET 24, “As the design and development center, it is fair to say the Erie will be heavily involved in the engineering. Additionally, a significant portion of the initial production will be done in Erie and the engines will come from Grove City.”
“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,” said Rafael Santana, President & CEO of GE Transportation. “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.”
Today’s announcement opens the next chapter in GE’s more than 80-year history of successful cooperation in Ukraine, reaffirming the company’s commitment to help modernize infrastructure, enhance energy security, increase access to high-quality healthcare, and support sustainable development.
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.