Seeking Alpha

GE in $660M deal to build locomotives for South African rail company

  • General Electric (GE +1.1%) says it won a contract to build 233 diesel locomotives for South Africa's state-owned Transnet rail company over three and a half years for 7.1B rand ($660M), part of a $4.7B commitment to buy more than 1,000 locomotives from various manufacturers as part of sweeping infrastructure upgrades.
  • Ge says the core parts of the locomotives including the engines will be made in the U.S. and the machines will be assembled at a facility in South Africa.
  • China's CSR Zhuzhou Electric and a local subsidiary of Canada's Bombardier (BDRBF) will split most of the rest of the order to build ~600 electric locomotives.
Comments (4)
  • howardlerner1
    , contributor
    Comment (1) | Send Message
     
    Congratulations to my friends at GE Rail, Glad to see this substantial order has been secured!!
    17 Mar, 05:15 PM Reply Like
  • faringbob
    , contributor
    Comments (16) | Send Message
     
    GE constantly amazes me with their diversity, quality and execution. It's a staple in my portfolio and has rewarded my buy & hold strategy with this particular company.
    Regarding it's chart, and looking at the 10 yr or longer time-frames, as with just about any well-ran profitable company with very good forward looking prospects, previous highs will be revisited. And exceeded if the story has not changed. With their tremendous backlog, I'd say the story gets better.

     

    Long & holding
    17 Mar, 07:37 PM Reply Like
  • 1hunstville
    , contributor
    Comments (3) | Send Message
     
    wHere are the nat gas locomotives
    17 Mar, 11:58 PM Reply Like
  • Wise Timmy
    , contributor
    Comments (265) | Send Message
     
    Hopefully they will be coming soon to the US market.
    18 Mar, 12:06 PM Reply Like
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