Siemens inks 3 billion euro train deal in India

India's Siemens signs a 3 billion euro train deal

The largest locomotive contract in Siemens' history, worth $3.25 billion, was signed to supply and maintain freight trains in India, the German engineering giant announced. The contract, which is also Siemens' largest ever in India, calls for the delivery of 1,200 electric locomotives as well as service for 35 years.

The Siemens-designed, 1,200-horsepower trains, with a top speed of 120 km (75 miles)/hr, will be assembled in the Indian Railways Factory in Gujarat state over the next 11 years, with deliveries starting in 24 months. “These new locomotives can replace between 500,000 to 800,000 trucks over their lifecycle,” said Siemens Mobility CEO Michael Peter.

The order was a big step for Siemens in India, Peter told Reuters, saying the company had previously been very strong in North America and central Europe in rolling stock but mainly provided components and infrastructure in India.

“India is looking for technology, better efficiency, and a longer lifespan for its trains,” he said in an interview. “In past India built their own trains, but they want to increase reliability and average speeds.” The deal is the latest bumper contract won by Siemens after it signed a 900 million euro deal for a new metro line in Sydney, Australia in December.

Peter was confident about reaching Siemens’s goal of increasing revenue in the mobility business by 6-9% this year, although this contract would mainly appear as orders in 2023.

He said 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. The government wants to increase the rail network’s share of freight transport to 40-45% from the current 27%, said Siemens, whose first contact is in India.