United Group Limited (ASX: UGL) and GE Transportation are pleased to announce they have signed a series of 10-year agreements for the sale and distribution of locomotives and associated technology and services in Australia.
Through these agreements, UGL Rail will remain the Australian distributor of GE’s US heavy-haul locomotives, including the Evolution® Series. UGL Rail will also continue to provide spare parts, maintenance and servicing to GE locomotives and to design and build locomotives in Australia using GE technology.
UGL and GE Transportation estimate the annual value of this relationship to be A$300 million, based on forecast sales of A$150 million in spare parts, maintenance and support services and A$150 million in new locomotives.
UGL Managing Director & CEO Richard Leupen said UGL was delighted to formalise its long-term relationship with GE Transportation, which has already been running for more than 40 years.
“This long-term agreement will support UGL’s rail operations throughout Australia and help cement our position as Australia’s leading supplier of rail solutions,” Mr Leupen said.
“UGL also has a strong ongoing relationship with GE in the power and water sectors, as well as in areas such as security and property services. This reflects our ongoing strategy of forming partnerships with the world’s leading technology providers.”
GE Transportation President & CEO Lorenzo Simonelli said the two companies looked forward to continued support of their customers in the resources and freight industries, which are such an integral part of Australia’s economy.
“GE Transportation is pleased to announce this relationship with UGL to serve our mutual customers in Australia with the most technologically advanced heavy-haul locomotives in the world,” Mr Simonelli said.
“Together, we’ve been able to increase hauling power for customers while reducing fuel consumption and emissions throughout Australia. Today’s announcement is a testament to our commitment to Australia’s rail infrastructure.”
Approximately 500 locomotives from GE Transportation and UGL Rail are currently in use throughout Australia. |
