(The following story by John D. Boyd appeared on The Journal of Commerce website on September 27, 2010.)
WASHINGTON, D.C. — Locomotive builder GE Transportation said it signed the largest locomotive delivery deal in Brazil’s history as Brazilian rail operator MRS Logistica agreed to buy 115 units with an option for 100 more.
GE will build the shells at its plant in Contagem, Brazil, and supply the engines and other key components from its Grove City, Pa., factory. Deliveries are scheduled over 2011 to 2015, with 60 next year and the remaining 55 starting in 2012.
The AC44i-model locomotives are designed to be fuel efficient enough to cut operating costs and carbon emissions 15 percent while supplying enough power that three of these units replace four older models.
The companies did not specify terms including the cost of the deal, but new high-horsepower locomotives used in freight service usually cost several million dollars apiece.
Many North American rail suppliers are trying to boost their foreign sales in the face of a still-weak market in the U.S. for new equipment, although major producers such as GE Transportation have long established overseas selling and production arms. GE said about 17,000 of its locomotives are in use in more than 50 countries.
“Brazil is one of our most vibrant growth markets,” said Guilherme Mello, president of GE Transportation Latin America. “The agreement reflects the strong recovery of the railroad industry in Brazil since its privatization in 1996.”