We plan to acquire 40 General Electric locomotives in 2020, - Vladyslav Kryklii
We plan to acquire 40 General Electric locomotives in 2020. We have an urgent need to update the rolling stock of Ukrzaliznytsia and we must do this on favorable and acceptable terms for Ukraine. Vladyslav Kryklii, the Minister of Infrastructure stated the above today, on December 30, 2019.
The Ministry of Infrastructure of Ukraine, Ukrzaliznytsia and the company Wabtec (GE Transportation) today signed a memorandum of understanding, which provides the conclusion of supply contracts for the delivery of 40 new General Electric TE33AC locomotives in 2020 and the provision of maintenance services for 70 such locomotives.
“The fair value of locomotives and the terms of the financing of the supply contract are key issues that determine future cooperation with Wabtec. Since March 2019, Ukrzaliznytsia has been in the negotiation process for service maintenance of locomotives supplied earlier and its cost. My task was to accelerate these processes and to ensure the most favorable conditions for Ukraine. Now, General Electric, together with our financial partners, has presented us with conditions that we consider acceptable. We are finalizing the approval of these conditions, after which the project documentation will be prepared. Another important point is the expansion of localization of production in Ukraine. We are also negotiating about this,” Minister of Infrastructure said.
On February 23, 2018, were signed such agrrements: a diesel locomotive supply agreement between JSC Ukreximbank and GE; and a financial leasing agreement between JSC Ukrzaliznytsia and JSC Ukreximbank for 30 diesel locomotives manufactured by GE. At the first stage of strategic cooperation, General Electric localized railway traction in Ukraine at the level about 10%.PJSC “Kryukov Railway Car Building Works” organized and provided the process of retrofitting diesel locomotives with equipment in accordance with the technologies and design documentation of the manufacturer.