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Ukrainian Railways signs contract with Alstom for 55 electric locomotives

Ukrainian Railways signs contract with Alstom for 55 electric locomotives

Financial News
Ukrainian Railways signs contract with Alstom for 55 electric locomotives
Ukrainian Railways CEO Oleksandr Pertsovskyi and Alstom CEO Henri Poupart Lafarge at the signing ceremony with President Zelenskyy and President Macron. Credit: Alstom

Ukrainian Railways has contracted Alstom for the delivery of 55 Traxx Hauler dual-voltage locomotives following a competitive tender process.

The agreement was formalised at a ceremony in Paris attended by French President Emmanuel Macron and Ukrainian President Volodymyr Zelenskyy, as well as representatives from the European Bank for Reconstruction and Development (EBRD) and the World Bank Group.

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The procurement is primarily financed through a €300m ($348.6m) loan from the EBRD and an investment grant of up to $190m from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund, administered by the World Bank.

The EBRD has already made an advance payment of approximately €120m to expedite project implementation.

This funding package will enable Ukrainian Railways to renew its fleet and continue providing both cargo and passenger services amid ongoing conflict.

Ukrainian Railways CEO Oleksandr Pertsovskyi said: “The strategic agreement, which we have signed with Alstom for the supply of 55 modern freight locomotives, is an important step toward solving the critical problem of the outdated traction fleet, with an average age of 46 years, and an investment in economic security and the sustainability of our logistics.

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“This agreement is an important signal of the trust of international partners (URTF Fund of the World Bank, EBRD) in the future of the Ukrainian railway industry. We are grateful to our partners for this support.”

Alstom will design and manufacture the locomotives at its Belfort facility in France, with deliveries scheduled to begin in 2027.

The contract includes provisions for training drivers and maintenance personnel, along with the supply of spare parts.

These dual-voltage locomotives are adapted to 3kV DC and 25kV AC traction systems, capable of reaching speeds of up to 120km/h and producing between 7.2MW and 9.4MW of power.

Each locomotive features four bogies configured in a twin Bo-Bo arrangement, with each axle powered by an independent traction motor.

The units will also incorporate Ukrainian-made security systems and radio equipment.

Alstom CEO Henri Poupart-Lafarge said: “This contract with Ukrainian Railways represents a significant milestone in our commitment to supporting the modernisation of rail transport in Ukraine.

“The locomotives we will deliver are tailored to meet the country’s specific infrastructure needs, while ensuring high performance, reliability, and energy efficiency.

“We are proud to contribute to Ukraine’s resilience and economic development through sustainable mobility solutions.”

Ukrainian Railways’ operations have continued throughout Russia’s invasion since 2022, supporting exports, humanitarian aid, and passenger movement, including internally displaced persons.

The EBRD has been maintaining its partnership with Ukrainian Railways.

Recent EBRD financing initiatives have included €200m in 2023 for upgrading rail links with the European Union (EU), €150m in emergency liquidity finance in 2022, and a €180m loan in 2024 to install small-scale power generators at selected sites across Ukraine.

EBRD sustainable infrastructure group managing director Harry Boyd-Carpenter said: “We are proud to be moving forward with this project, which underscores the importance of continued support to Ukrainian Railways, the vital backbone of the Ukrainian economy and society.”

Alstom has been operating in Ukraine since 2012, with an engineering centre in Kharkiv focused on railway traffic control systems and a Kyiv office supporting rolling stock projects.

The transport company recently opened a new, multi-million-pound train component overhaul and repair facility at its Crewe Works site in Cheshire, UK.

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