Wednesday, September 19, 2012

Bombardier, EMD team up to export locomotives

Written by  William C. Vantuono, Editor-in-Chief
Bombardier, EMD team up to export locomotives William C. Vantuono

Bombardier Transportation and Electro-Motive Diesel ( a subsidiary of Progress Rail Services) announced Wednesday that they are joining forces to assemble diesel-electric locomotives in India. Bombardier will deliver locomotives to EMD for export to Southeast Asia and the Pacific region. Bombardier and EMD made the announcement at the InnoTrans 2012 exhibition in Berlin.

The joint venture builds upon a similar collaboration between both companies at Bombardier's manufacturing site in Ciudad Sahagun, Mexico. Bombardier will manufacture certain components, including underframes and bogies, and assemble the EMD locomotives at its Savli, Gujarat facility in India. EMD will provide all engineering and quality control and will be responsible for product performance.

EMD President and CEO Billy Ainsworth (left) noted that EMD has been doing business in India for 50 years. During that time, it has manufactured about 700 locomotives there, "many of which are still in operation. We looked at the Asia-Pacific region, and we determined that India was the best place to manufacture locomotives for that market. India is an industry-friendly nation, and there's a growing railway supply industry base there fpr meeting our needs. There's a solid labor base. We have an engineering center of excellence in India. And Bombardier understands world-class quality. We know this from the work they have done for us in Sahagun."

None of the locomotives built at the Savli plant will be for the Indian market. EMD operates a separate manufacturing plant in India to serve that market.

"Since 2008, we have invested E$30 million in our Savli plant," said Bombardier Transportation President and Chief Operating Officer Andr√© Navarri (right). Bombardier employs about 1,100 people in India at three facilities involved with vehicle and propulsion system manufacturing and signaling and train control software development. 

"Bombardier and EMD will help transform the rail transportation industry in the region by leveraging both of our companies' capabilities," said Navarri. "By further expanding its global relationship with EMD, Bombardier will provide best-in-class products in keeping with its tradition of quality and extend its range of rail vehicle manufacturing in India."

"This announcement furthers our commitment to our global customer base, and we fully intend to build upon our heritage," said Ainsworth. "In September 2011, we announced the opening of a facility in Patli [in Guragon, India] for locomotive traction control systems, and we want to continue to invest in the region with this and other promising projects."