Russia-based Transmashholding has signed an agreement with Ukrainian State Rail Transport Administration (Ukrzaliznytsia) to supply 300 electric freight locomotives.
The order includes 230 2ES4K-series DC locomotives and 70 2ES5K-series AC locomotives, which will be delivered between 2012 and 2016.
They will be manufactured at Transmashholding's Novocherkassk Electric Locomotive Plant (NEVZ) in Russia.
The electric freight locomotives are being bought by Ukrzaliznytsia to upgrade Ukraine's locomotive fleet over the next five years.
Ukrzaliznytsia is also planning to buy 509 freight and passenger locomotives under its fleet upgrade plan between 2012 and 2016.
The state-owned rail administration will fund the fleet expansion programme through its own fund and borrowing, as well as from other sources, while Ukrzaliznytsia has allocated UAH28.67bn ($3.5bn) for the fleet expansion programme.
Ukrzaliznytsia, Transmashholding, Luhanskteplovoz and Luhansk Regional Administration previously signed a protocol of intent on 20 July 2011 for the acquisition of freight locomotives.
The contract could not be concluded as Transmashholding wanted to transfer Ukrzaliznytsia's order from Luhanskteplovoz to NEVZ, according to kyivpost.com.
CJSC Transmashholding manufactures diesel engines, locomotives, multiple train units, metro cars, passenger coaches, freight wagons and car casting, and rolling stock components
Recently, the company signed a contract with Russia coal mining company JSC HC Kuzbassrazrezugol to supply 2,500 open cars of the 12-3090 model.
Last year the company formed a joint venture (JV) with Alstom and Kazakh Railways (KTZ) to manufacture electric locomotives in Kazakhstan.
The locomotives manufactured by the JV were planned to feature components from the French-Russian consortium and from Alstom's Belfort factory in France.
Under the agreement, the JV will first cater to the requirements of Kazakh Railways and the remainder will be exported to other countries.
Caption: Ukraine Railways is planning to buy 509 freight and passenger locomotives under its 2012-16 fleet upgrade plan and has allocated UAH28.67bn ($3.5bn) for the programme.