French transportation giant Alstom has secured a contract to deliver 117 new electric freight locomotives to Kazakhstan, a step in modernizing the country's rail network, according to Caspian News. The agreement was announced during the Kazakhstan-France Business Council meeting held in Paris, highlighting Kazakhstan's commitment to enhancing its transportation infrastructure.
The deal involves Alstom, Kazakhstan's national railway company, Temir Zholy (KTZ), and Electrovoz Kurastyru Zauyty (EKZ). As part of the agreement, Alstom will supply advanced electric freight locomotives and establish new service centers in Kazakhstan by 2028.
These new locomotives are set to replace the aging VL-80 models from the 1980s, which currently dominate the country's freight rail network. Based on Alstom's Prima T8 KZ8A platform, the modern locomotives are capable of hauling up to 9,000 tons, enhancing freight capacity compared to existing trains. In addition to their increased power, these locomotives are designed for lower maintenance costs, high reliability, and improved energy efficiency, which is expected to lead to reduced operational expenses over time.
Financing for this substantial project will be facilitated by Société Générale, one of France's major banks, offering Kazakhstan favorable loan rates to ease the financial burden of the transition. The financing will also be backed by BPI France, the export credit agency of the French Ministry of Finance.
Alstom is set to invest €50mn in constructing four maintenance centers throughout Kazakhstan. Andrew DeLeon, Alstom’s President for Africa, the Middle East, and Central Asia, confirmed that the first service center is scheduled to open in Shu by early 2025. These centers will enhance maintenance efficiency and create over 450 local jobs, contributing to Kazakhstan's economic growth and reinforcing its rail infrastructure.
Alstom has a significant presence in Kazakhstan's rail industry, with approximately 250 freight and 119 passenger locomotives already in operation across the country. As a leading transportation company, Alstom is the sole producer of electric locomotives and point machines in Central Asia and the Caucasus region, employing over 1,000 people at seven sites, including two production facilities.
With a railway network extending over 15,000 kilometers, Kazakhstan serves as a vital conduit between Europe, Asia, Russia, and the Middle East, particularly through the New Silk Road trade routes. The country's rail system, which utilizes a 1,520 mm track gauge, ranks as the 21st largest in the world, making it an appealing market for both transportation and maintenance operations.
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