Bombardier to supply hight-tech locomotives to OAO Russian railway

In a deal that expands its presence in Russia, Bombardier Transportation has announced its agreement with Russian train-manufacturer CJSC Transmashholding to develop an equal joint venture company to manufacture a new generation of high-tech locomotives using Bombardier's asynchronous propulsion technology, for the Russsian traction power rolling stock market, the largest in the world.

Russia is overhauling its entire railway rolling stock fleet, whch last year had surpassed its operating life span, and its national carrier OAO Russia Railway plans to replace 84m per cent of its diesel locomotives and will need over 11,675 engines bfrom this year onwards till 2015. In the next 15 years thereafter it ewill need another 11,700 locomotives.

Under their agreement, the two companies will form a new joint venture to undertake the development of a new family and new generation of locomotives using the technology Bombardier, the global leader in the production of electric locomotives. Transmashholding is the major supplier of rolling stock for the Russian railways.

In addition o devloping new locomotives for the Russian and CIS markets the new venture will locate new markets.The companies say the creation of a new engineering joint venture to develop locomotives is a consistent progression in the cooperation that started between the companies last year. On 25 May 2007 they signed an agreement to establish establishment the two joint ventures, which included the development of advanced propulsion technology for railway equipment and the production of key components for electric locomotives - traction converters based on Bombardier's MITRAC propulsion technology.

Last year the two formed Bombardier Transportation Transmashholding AG, as the managing company,  followed by two subsidiaries - Transmashholding Bombardier Transportation (Engineering) Rus" (engineering center) and "Transmashholding Bombardier Transportation (Industrial) Rus" (converter manufacturing JV).

Since the '90s Bombardier Transportation has developed partnership with the leading Russian customers and steadily increased its industrial presence in Russia. OAO Bombardier Transportation (Signal), the Moscow-based joint venture with RZD, has managed the assembly, programming and commissioning of BOMBARDIER EBI Lock 950 computer-based interlocking systems for over 12 years. Some 70 Russian railway stations have already been equipped with this system and the joint venture has supplied its products to CIS countries, Baltic States, Slovakia and Turkey. Two joint ventures on developing and manufacturing propulsion equipment were established with Transmashholding in 2007.