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KTZ received financing to purchase locomotives from Wabtec

20 September 2023
Reading time ~ 2 min
TE33A diesel locomotives produced at Wabtec’s plant in Kazakhstan
TE33A diesel locomotives produced at Wabtec’s plant in Kazakhstan. Source: Dmitry Lisin
Belov Sergey, Editor-in-Chief, ROLLINGSTOCK Agency
Reading time ~ 2 min
Litvintsova Olga, Editor of International Projects, ROLLINGSTOCK Agency

Kazakhstan: National railway operator Kazakhstan Temir Zholy (KTZ) signed an agreement with Citibank for a credit line of $900 mln. The US export credit agency is assisting with deliveries, providing a reduced interest rate. As noted by Renat Bekturov, Governor at Astana International Financial Centre, that participated in the negotiations, the funds should allow the purchase of about 240 locomotives and thus update 15% of KTZ’s locomotive fleet.

A framework agreement on strategic cooperation between KTZ and Wabtec was signed, too. According to it, at the LKZ site of Wabtec in Kazakhstan, it is planned to produce locomotives using hydrogen technologies and components, as well as establish an engineering center to ensure technology transfer. Following the results of negotiations with the locomotive manufacturer, President of Kazakhstan Kassym-Jomart Tokayev welcomed Wabtec’s plans to invest about $1 bln in transport and logistics development.

This spring, LKZ stated that it had increased production capacity to 120 locomotives per year. The main vehicles produced at LKZ since 2009 are the TE33A mainline diesel locomotives in various modifications. As for production localization, the Ministry of Industry and Infrastructure Development of Kazakhstan reported in 2021 that the share of local components in the LKZ rolling stock exceeded 74%.

Earlier in 2022, Wabtec and KTZ signed a memorandum on a smaller volume of supplies worth $600 mln. It implied the production of 150 battery shunting locomotives with FLXdrive technology and modernizing the mainline fleet for liquified natural gas traction. At the same time, a 2018 contract for the supply of TEM11A shunting diesel locomotives is in effect.