Commerce brokers $4B locomotive deal with Kazakhstan

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Commerce brokers $4B locomotive deal with Kazakhstan

Commerce brokers $4B locomotive deal with Kazakhstan

Secretary of Commerce Howard Lutnik worked with locomotive-maker Wabtec and the government of Kazakhstan to broker a deal for $4.2 million purchase of 300 locomotives. File Photo by Bonnie Cash/UPI | License Photo

The U.S. Department of Commerce announced a $4.2 billion commercial deal between the government of Kazakhstan and U.S.-based Wabtec Corporation, which makes locomotives.

The deal, brokered by Commerce, was signed during the United Nations General Assembly in New York. Under the agreement, Wabtec will sell 300 locomotives to Kazakhstan. The press release said it’s the “largest rail equipment deal in history.”

“Today’s record Locomotive Deal commercial agreement for the great American company Wabtec Corporation shows the economic prosperity that President Trump’s America First Trade Policy continues to deliver,” said U.S. Secretary of Commerce Howard Lutnick. “This landmark deal advances U.S. manufacturing jobs and accelerates growth, opportunity, and connectivity in America and Central Asia.”

Lutnick and Under Secretary of Commerce for International Trade William Kimmitt joined Kazakhstan President Kassym-Jomart Tokayev and Wabtec Corporation President and CEO Rafael Santana for the signing ceremony. Wabtec will sell 300 evolution Series ES44Aci heavy-haul locomotive kits over the next decade. The agreement is expected to support over 11,000 American jobs, the release said.

On Truth Social, President Trump praised the deal.

“I just concluded a wonderful call with the Highly Respected President of Kazakhstan, Kassym-Jomart Kemeluly Tokayev,” Trump posted. “They have signed the largest Railroad Equipment Purchase in History, $4 Billion Dollars Worth of United States Locomotives and Rail Equipment. We need to support our U.S. Rail Industry, which has been attacked by Fake Environmentalists for years. Congratulations to President Tokayev on his great purchase. This Country, and the World, was built on reliable, beautiful Railroads. Now they will be coming back, FAST!”

In 2021, General Motors and Wabtec announced a collaboration to use GM’s battery technology and fuel cell systems in Wabtec locomotives. The car giant’s Ultium battery technology and hydrogen fuel cell system would allow Wabtec to run its locomotives all with battery power.

In 2008, Westinghouse Air Brake Technologies Corp. — now Wabtec — agreed to pay $300,000 for alleged bribes to foreign officials. The U.S. Department of Justice alleged that the company violated the Foreign Corrupt Practices Act by making improper payments to government officials in India.

On the same day as the Commerce Department announcement, the Department of Transportation announced that the Federal Railroad Administration issued a Notice of Funding Opportunity for the National Railroad Partnership Program. The new NOFO allocates more than $5 billion in funding for projects that improve safety on intercity passenger rail networks.

This includes improvements to grade crossings. The release said poor crossings result in more than 2,000 incidents and 200 deaths each year.

The NOFO includes about $2.4 billion the FRA revoked from the California High-Speed Rail project, which will now be reinvested into other projects, critical infrastructure upgrades, and rail safety, the press release said.

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