GE Signs $575 Million Agreement
GE to supply 100 locomotives and 15-year parts agreement to support Egypt’s transportation and infrastructure needs
AA – GE (NYSE: GE) announced today that it signed a Letter of Intent with the Ministry of Transportation (MoT) and Egyptian National Railways (ENR), worth $575 million, to supply 100 GE ES30ACi Light Evolution Series Locomotives that can be used for both passengers or freight rail, as well as a 15-year agreement for parts and technical support for GE locomotives in ENR’s new and current fleet. The agreement, which is the largest ever between the parties, also includes technical training aimed at improving local capabilities and technical skills for more than 275 ENR engineers and employees in region.
To highlight the importance of this agreement to Egypt, the signing was attended by dignitaries such as Egypt’s Prime Minister Sherif Ismail; H.E. Dr. Sahar Nasr, Minister of Investment & International Cooperation in Egypt; H.E. Dr. Hesham Arafat, Minister of Transportation in Egypt; Medhat Shousha, Chairman of ENR; H.E. US Ambassador Robert Beecroft, US Ambassador in Egypt; and John Rice, Vice Chairman of GE and President and CEO of GE’s Global Growth Organization.
“A common thread amongst national strategies across the globe is the provision of sustainable and advanced infrastructure, with transportation a particularly crucial component,” said John Rice. “What is exciting about this partnership is its truly holistic nature. We are working with the MoT and ENR on the entire process – from ensuring a competitive financing solution with partners to the manufacture and technical support for the locomotives, and the training and development of engineers. This is what it takes to be a true partner, engaging at all levels to offer comprehensive end-to-end solutions.”
This strategic agreement reflects GE Transportation’s efforts to deepen and transform its global presence, meet international customers’ needs, and capitalize on the strong opportunity for international growth that’s critical to continued success.
“This marks a major milestone for Egypt and reflects a long-standing relationship with the Ministry of Transportation and ENR,” added Jamie Miller, GE Transportation Chief Executive Officer. “Today, ENR’s fleet includes roughly 80 GE Evolution Series locomotives to move people and goods critical to Egypt’s economy. With this agreement, we will help the region improve its rail infrastructure and bring products to market faster and more efficiently.”
Medhat Shousha, Chairman of Egyptian National Railways, said: “We are looking forward to bringing the latest technologies to improve rail infrastructure in Egypt. Together with GE, we will work on enhancing the efficiency of rail transportation for both freight and passengers. Additionally, the parts and technical support agreement will ensure that the performance of our fleet is maintained over the years.”
GE ES30ACi Light Passenger Evolution Series Locomotives are equipped with a 12-cylinder, 3,200 horsepower GE Evolution Series engine. The locomotive delivers high power output to enable enhanced productivity and flexibility in heavy haul operations, as well as enhanced reliability. The locomotives can be used to transport passengers or freight.
GE has been a committed partner to Egypt for over 40 years. With more than 700 employees in country, GE works with its partners in the public and private sector to bring its latest technologies and solutions to serve the transportation, aviation, oil & gas, power and healthcare sectors. This agreement builds on our longstanding partnership with the Ministry of Transportation and ENR.
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