Through these pacts, UGL Rail will remain the Australian distributor of GE's U.S. 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. Approximately 500 locomotives from GE Transportation and UGL Rail are currently in use throughout Australia.
UGL and GE estimated the annual value of the relationship at 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 pleased to formalize its long-term relationship with GE Transportation, which has spanned 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," Leupen said.
GE Transportation has sold more than 3,200 Evolution Series locomotives. The Evolution Series Locomotive is 5 percent more fuel efficient and generates 40 percent lower emissions than previous locomotives. Evolution Series Locomotives currently are operating in the United States, Canada, Mexico, Brazil, China, Mongolia, Australia, Kazakhstan and Egypt.