Next Stop, Kyiv: Ukrainian Railways’ $1 Billion Deal With
GE Is Set To Dispatch Its Trains Into the Future
By Dorothy Pomerantz – Today (Feb 23, 2018), the Ukrainian government announced it will buy 30 new GE locomotives, which will be built in the U.S. and will arrive in Ukraine for final assembly by the end of the year. The framework agreement, which is valued at over $1 billion, also includes the modernization of existing locomotives in Ukrainian Railways’ fleet, plus additional new GE units over the next decade and a long-term service contract to help maintain them.
The deal is part of a rail-system upgrade the country is undertaking to make sure its $2 billion agricultural sector, which the U.S. Department of Commerce calls “the most promising sector” of the country’s economy, can continue to sell and export the food it produces.
Crucial to this plan: locomotives that work better and don’t break down.
Modernizing a locomotive is like gut-renovating a house, stripping it down to the bare studs and putting in all new walls, stairways and appliances. For Ukrainian Railways, the modernization process will start with the old Soviet-built locomotives that the national rail company has been using for decades.
Workers from GE and local companies will take out the locomotive’s insides, the control system, radiator and engine, until only the bare metal skeleton is left. Then each locomotive will be rebuilt with a shipment of GE equipment, known as a kit. more>