Wabtec signs $700m Simandou locomotive services agreement
NYSE-listed Wabtec Corporation has announced a more than $700-million long-term services agreement with public-private joint venture La Compagnie du TransGuinéen (CTG) to support its fleet of new Evolution Series locomotives.
The agreement is Wabtec’s largest services contract in Africa and, combined with the 2024 locomotive orders, brings its total value to more than $1.2-billion for the Simandou iron-ore project, in Guinea.
“Wabtec is proud to support the Simandou project, which we believe represents a transformative opportunity for Guinea.
“This agreement is designed to help maximise locomotive affordability, efficiency and reliability, while supporting the development of local capabilities through workforce development, skills training and partnerships with Guinean businesses,” says Wabtec global freight services president Sameer Gaur.
Wabtec notes that the CTG’s over 600 km railway connects the Simandou mine to Guinea’s Port of Morebaya, forming a critical transportation corridor for one of the world's largest untapped reserves of high-grade iron-ore, as well as passengers and non-mining goods.
The company also highlights that the project represents one of the most significant infrastructure investments in Guinea's history, intended to support long-term economic growth and development throughout the country.
“This agreement is intended to support the long-term performance of the locomotive fleet as we work to build a railway designed to contribute to economic growth and development across Guinea.
“It also highlights Guinea’s vision to build win-win partnerships with American companies, in the country’s ambition to grasp the best technologies from all over the world,” says Guinea Mine and Geology Minister Bouna Sylla.
This multi-year customised services agreement is designed to support CTG's operational requirements and long-term fleet strategy, and the scope includes scheduled and unscheduled maintenance, parts and components overhauls, parts management, logistics support, training, advanced remote diagnostics and a strong localisation component.
Moreover, Wabtec points out that its locomotives are built for demanding operating environments and to deliver fuel efficiency, high reliability and proven optimal performance in extreme temperatures, including the challenging conditions of eastern Guinea.
“The TransGuinean Railway is one of Africa’s most significant rail infrastructure projects and operating it successfully requires world-class technology and support, as well as a clear commitment to localisation and technology transfer,” CTG chairperson Mamoudou Nagnalen Berry says.
