Siemens has signed a 3 billion euro ($3.25 billion) deal to supply and service freight trains in India, the German engineering company said on Monday, the largest locomotive deal in its history. Siemens will supply 1,200 electric locomotives and give servicing for 35 years under the contract, also its largest ever in India.
The Siemens-designed, 9,000-horsepower trains with a maximum speed of 120 km (75 miles)/hr will be built in India over the next 11 years, with deliveries beginning in two years.
“These new locomotives … can replace between 500,000 to 800,000 trucks over their lifecycle,” said Siemens Mobility CEO Michael Peter.
The order was a huge step for Siemens in India, Peter told Reuters, saying the company had previously mostly supplied components and infrastructure there.
“India is looking for technology, better efficiency, and a longer lifespan for its trains,” he said in an interview. “In the past, India built their own trains, but they want to increase reliability and average speeds.”
The contract is the most recent bumper deal won by Siemens after it signed a 900 million euro contract for a new metro line in Sydney, Australia last month.
Peter was confident about achieving Siemens’s goal of boosting revenue in the mobility business by 6-9% in 2023, although this contract would largely appear as orders in 2023. He said profit margins aligned with what he expected for rolling stock, refusing to comment further.
Buy Crypto NowHe said Siemens was also considering other train deals in India, the world’s biggest rail market with 24 million passengers traveling every day on more than 22,000 trains.
The government in New Delhi plans to extend the rail network’s share of freight transport to 40-45% from the current 27%, said Siemens, whose initial contract in India – a London to Calcutta telegraph line – dates back to 1867.
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