KTZ, CRRC to sign $1.3 billion deal for diesel locomotives and service centers in Kazakhstan
ASTANA. Oct 17 (Interfax) - Kazakh State railway company Kazakhstan Temir Zholy (KTZ) and Chinese rolling stock producer CRRC Corporation Limited are set to sign a $1.3 billion agreement for the purchase of 200 shunting and mainline diesel locomotives and the establishment of service centers in Kazakhstan, the President's press service said.
During a meeting in Beijing, President Kassym-Jomart Tokayev met with Sun Yongcai, Chairman and Executive Director of CRRC Corporation Limited.
"Tokayev was informed that a $1.3 billion cooperation agreement is in the works between Temir Zholy and CRRC. This agreement will involve the acquisition of 200 shunting and mainline diesel locomotives, and the establishment of engineering and service centers in Kazakhstan," the President's press service said.
The President highlighted Kazakhstan's interest in achieving substantial localization in locomotive production using advanced technologies and establishing service centers. He emphasized the country's role as a vital transport and logistics hub that can provide CRRC access to the markets of the Eurasian region and Europe. The President supported the company's plans to invest $200 million in related projects.
Kazakhstan and China have also signed an agreement for advancing the Trans-Caspian International Transport Route (TMTM), especially for container train services linking China and Europe. This document outlines their collaboration in enhancing TMTM and container transportation along the China-Europe route to increase combined transport potential and foster increased trade and investment.
With this agreement in place, both parties are committed to overseeing the effective operation of transportation infrastructure within their respective territories, as well as bolstering the capacity of primary transportation networks and port facilities. The agreement also entails jointly creating a supportive environment to facilitate the smooth and efficient operation of TMTM. This includes a pre-notification mechanism to prevent delays for freight vehicles and trains at international checkpoints.
Moreover, the agreement establishes a working group dedicated to goods transportation via TMTM, which will operate at the ministerial level of transport sector authorities.
CRRC Corporation Limited, the world's largest railway transport manufacturer, holds approximately 50% of the global locomotive production market.