80 multisystem locomotives from Alstom to boost rail freight in Ukraine
French rolling stock manufacturer Alstom has finalised an agreement with Ukrainian Railway for supplying 130 electric locomotives. Most of the vehicles, 80 units, will be multisystem, which is vital for speeding up rail freight operations in the country. The deal is funded by the French loan.
Ukrainian Railway (UZ) will get 130 electric locomotives from Alstom in the coming years. The delivery, which costs 900 million euros, consists of two types of locomotives: 50 electric vehicles powered from alternating current and 80 dual-system vehicles powered from both types of current. This follows from the memorandum of cooperation signed between the companies earlier this week. The document stipulates the arrangements between the parties after a series of negotiations that lasted over three years.
Furthermore, some Ukrainian companies will be involved in the production of the mentioned batch of rolling stock. “The signed document will allow us to get much-needed electric locomotives under the best possible conditions in a current turbulent time. The use of Ukrainian companies and specialists in the construction and maintenance of vehicles will also bring a unique experience to Ukraine,” said Oleksandr Kamyshin, CEO of UZ.
The memorandum provides for unique conditions for the supply, particularly of a financial loan for 14 years by the French Treasury and a consortium of the French banks at the amount of 85 per cent of the contract value. The advance payment for the supply of electric locomotives is 15 per cent. UZ’s locomotive fleet is worn out by 95 per cent, the average age of electric and diesel locomotives is 40 years.