Ukraine, France signs intergovernmental agreement on financing supplies of 130 electric locomotives for Ukrzaliznytsia – Alstom
The French concern Alstom welcomes the signing of a government agreement between France and Ukraine on financing the supply of 130 heavy electric locomotives worth EUR 900 million for Ukrzaliznytsia.
The agreement is a decisive step towards a future project for the supply of modern locomotives that meet the needs of the Ukrainian railway market. In addition to providing locomotives, Alstom will also be able to provide their full accompanying maintenance at the local depot of the Ukrainian railways, the company said in a statement on Thursday.
The company said that for a project of this scale, it is necessary to involve a number of French Alstom plants, in particular, the Belfort facility, where the global center of excellence for Alstom locomotives is located, as well as the sites in Ornans, Tarbes, Le Creusot and Villeurbanne.
Alstom said that the agreement between the countries demonstrates strong French support for Ukraine's transport development program and could provide, through future commercial contracts in 2021, a leading position for Alstom in this development plan.
Alstom appreciates the high potential of the Ukrainian market and the company would be proud to be involved in expanding Ukraine's rail infrastructure. With hundreds of electric locomotives designed, manufactured and sold worldwide, as well as extensive maintenance experience, Alstom is uniquely positioned to implement the project, the press service said, citing Chairman of the Board of Directors and CEO of Alstom Henri Poupart-Lafarge.
He said that the implementation of the contract can further strengthen the company's position in the segment of heavy locomotives.
As reported on the Ukrzaliznytsia website, the company welcomes the signing of a framework agreement between the governments of Ukraine and France to renew the electric locomotive fleet.
"Supporting the project for the modernization of the Ukrzaliznytsia electric locomotive fleet at the government level is a clear signal for our company that the shareholder, represented by the Cabinet of Ministers of Ukraine, is taking decisive steps to support the solution of pressing problems of the railway industry. It is also a signal for the national economy that the work of the government is aimed at developing the economic potential of Ukraine, strengthening the transit positions of the state," Head of Ukrzaliznytsia Ivan Yurik said.
The company said that, according to preliminary calculations, 130 freight electric locomotives will be purchased.
The needs of Ukrzaliznytsia in the renewal of the fleet of freight electric locomotives by 2025 are at least 50 units, and another 265 locomotives by 2033. The total demand by 2033 is at least 315 electric locomotives.
Earlier French Minister of the Economy and Finance Bruno Le Maire said in an interview with Interfax-Ukraine that Alstom is ready to increase the local content in the contract for the supply of electric locomotives to Ukraine.
Alstom is one of the world leaders (along with Siemens and Bombardier) in the production of power equipment and rail transport. The company operates in more than 60 countries and employs about 38,900 people.