Siemens signs biggest train deal for $3.25b in India.

The largest locomotive contract in Siemens’ history, worth $3.25 billion, was signed to supply and maintain freight trains in India, the German engineering company announced on Monday.

The contract, which is also Siemens’ largest ever in India, calls for the delivery of 1,200 electric locomotives as well as servicing for 35 years.

The 9,000-horsepower, 120 km/h (75 mi)-per-hour, Siemens-designed trains would be built in India over the course of the following 11 years, with delivery beginning in 24 months.

According to Siemens Mobility CEO Michael Peter, “These new locomotives… can replace anything from 500,000 to 800,000 vehicles throughout the course of their lives.”

According to Peter, who spoke to reporters, the deal represented a significant development for Siemens in India, where the business had hitherto mostly provided infrastructure and components.

In an interview, he stated that “India is searching for technology, higher efficiency, and a longer lifespan for its trains.” India used to construct its own trains, but it now wants to boost average speeds and reliability.

After agreeing to a 900 million euro contract for a new metro line in Sydney, Australia, in December, Siemens signed the deal, which is the company’s most recent blockbuster contract.

Despite the fact that this contract would primarily manifest as orders in 2023, Peter felt confident in his ability to help Siemens meet its objective of growing revenue at the mobility division by 6-9% this year. He declined to elaborate further, only stating that the profit margins were in line with what he had anticipated for rolling stock.

In India, the largest rail market in the world with 24 million passengers per day traveling on more than 22,000 trains, he claimed Siemens was also considering other train contracts.

According to Siemens, whose first connection to India was a London to Calcutta telegraph line built in 1867, the administration in New Delhi intends to expand the rail network’s share of freight transportation from the current 27% to 40-45%.