NEW DELHI, India: Siemens has announced that it has signed the largest locomotive deal in its history, worth $3.25 billion, to supply and service freight trains in India.
Under the agreement, the German engineering firm will deliver 1,200 electric locomotives and provide servicing for 35 years.
Over the next 11 years, the company's 9,000-horsepower trains, which has a top speed of 75 miles per hour, will be assembled in India, with deliveries starting in 24 months.
"These new locomotives can replace between 500,000 to 800,000 trucks over their lifecycle. India is looking for technology, better efficiency, and longer lifespan for its trains. In the past, India built their own trains, but they want to increase reliability and average speeds," said Siemens Mobility CEO Michael Peter, as reported by Reuters.
The agreement is the latest won by Siemens, after it signed a deal for a new metro line to be built in Sydney, Australia, worth $975 million in December.
Siemens was also looking at other train contracts in India, the world's largest rail market, with 24 million passengers traveling daily on more than 22,000 trains, Peter added.
The Indian government aims to increase the country's rail network's share of freight transport to between 40 percent and 45 percent, from the current 27 percent, Siemens said.