Sunday, August 20, 2017

Russian Railways buys 675 locomotives from Siemens

German manufacturer Siemens has signed a $3.2 billion letter of intent with Russian Railways to provide the rail network with 675 electric locomotives by 2020.

Production of the locomotives will occur as part of a joint venture between Siemens and Sinara, a Russian investment group. The joint venture Ural Locomotives, of which Siemens holds a 49 percent stake, was formed in 2010 when the two entities began manufacturing locomotives in Verkhnyaya Pyshma, according to Railway-Technology.com.

In May 2010, Russian Railways ordered 221 freight locomotives from Ural Locomotives. Per the 2012 agreement, that order is scheduled to be fulfilled by 2016.

Russian Railways already operates Granit 2ES10 locomotives supplied by Ural Locomotives. Under the latest agreement, Russian Railways will purchase the electric two-section cargo locomotive fleet between 2016 and 2020. The deal also stipulates that an additional contract regarding delivery of the new fleet will need to be signed by Russian Railways and Ural Locomotives in 2014, according to Railway-Technology.com.

In an ongoing effort to modernize the manufacture and operation of modern electric locomotives in Russia, Siemens has invested $128 million to establish locomotive production in the country.

Siemens formed another joint venture with Sinara, Train Technologies, to deliver 240 Desiro RUS electric trains to Russian Railways. That deal, worth $2.5 billion, calls for production to begin at Train Technologies' Yekaterinburg manufacturing facility in 2013.