WABTEC in discussions to sell 40 locomotives to Ukraine

No hard arrangements before the end of the year. Financing to be arranged through the ExImBank, which (somewhat incredibly to me) does not consider the ‘special military operation’ ti oise a rust that would exaggerate the finance terms.

Some detail here, if you can read or translate Cyrillic:

https://finance.liga.net/ua/bank/novosti/ukraina-povernulasia-do-idei-prydbaty-v-ssha-40-lokomotyvivi

In part:

  • The first stage of the deal involves the delivery of 30 TE33A Evolution freight locomotives manufactured in the United States and the localization of a certain part of production (10% of the final transaction value) in Ukraine. WABTEC will use the Ukrainian signal and radio system and certain cabin elements at this stage.
  • The cost of locomotives is US$4.68 million (including VAT) each. The contract amount [of the first batch of 30, according to Ekonomichna Pravda] is US$140 million with VAT. (Extrapolation to 40 locomotives would be relatively straightforward).
  • Apparently only about 5.3% of operating entity Ukrzaliznytsia’s locomotives are less than 25 years old.

If Russia over comes Ukraine this could produce another batch of orphan locomotives like the Little Joe’s.