French engineering company Alstom has secured a 300m pounds contract to supply 50 KZ8A freight locomotives to Azerbaijan Railways.
The locomotive will be assembled in Alstom's JV EKZ between 2016 and 2018. Alstom's share in the contract amounts to about 150 m pounds.
The contract may also involve the construction of a depot, technical assistance and maintenance, as well as training for ADDY staff. These are subject to negotiation within the coming six months.
KZ8A locomotives, which are among the most powerful locomotives in the world with asynchronous traction, have capacity to run at 120km/h and to haul up to 9,000 tons.
Alstom Transport Russia and CIS SVP Thibault Desteract said, "Azerbaijan is a strategic transit point between Europe and Central Asia. The modern KZ8A freight locomotives will help increasing its carrying capacity in transportation of raw materials and goods."
Separately, Alstom also signed a Memorandum of Mutual Cooperation with Baku Metropoliten to develop modern metro cars for both the new lines and the gradual replacement of the existing fleet of Baku metro.
The final agreement is to be signed in the coming two months.