The Ukrainian Railways public joint-stock company (Ukrzaliznytsia) and General Electric Transportation signed a framework agreement on establishment of a 15-year partnership for upgrade and modernization of Ukrainian railway rolling stock on Friday, February 23. This was reported by the CFTS correspondent, who attended the signing ceremony.

The framework agreement provides for supply of up to 225 General Electric locomotives of the Evolution Series by 2034 and long-term maintenance of the locomotives.

Production of the locomotives will begin at plants in the United States in early 2018.

As the CFTS previously reported, the cost of the project is estimated at USD 1 billion.

The first phase of implementation of the contract will include delivery of 30 TE33A with 10% localization of production in Ukraine. The first delivery is planned for the end of September. All the 30 locomotives should be received before the end of the first quarter of 2019.

For delivery of the first 30 diesel locomotives, an agreement valued at USD 140 million (including VAT) was signed between General Electric and the state-owned Ukreximbank. The bank will later deliver the locomotives to Ukrzaliznytsia on financial leasing terms.

A fifth-generation Evolution TE33A diesel locomotive, which General Electric plans to deliver to supply to Ukrzaliznytsia, will cost about USD 4.5 million.

These locomotives have asynchronous traction drives, and they are the most modern platform in General Electric’s line. Such a single-section diesel locomotive is capable of replacing two-section diesel locomotives of the series 2TE10 and 2TE116 with a capacity of 6000 hp each and locomotives of the series 2M62 with a capacity of 4000 hp, which have been in operation on Ukrainian railways since the Soviet era. 

The agreement stipulates that the level of localization will be raised to 40% over time.

In addition, under the contract, General Electric will modernize 75 old Ukrzaliznytsia locomotives with a 50% localization level. In addition, a service center for the new locomotives is to be created in Ukraine.