French bank finances purchasing of Alstom locomotives by Kazakhstan Railways

Alstom, a French rolling stock manufacturer, will ship 117 freight electric locomotives to Kazakhstan Railway (Kazakhstan Temir Zholy, KTZ) before 2028 and establish service centers, the KTZ’s press service reported. The agreement has been signed in Paris at the Kazakhstan-France Business Council.

In order to acquire the engines, KTZ will contract a low-interest loan at the French bank, Société Générale. The transaction guarantor will be BPI France, the export credit agency of the French Ministry of Finance. The transaction amount hasn’t been disclosed, though.

The ordered freight locomotives will replace obsolete and worn-out engines produced in the 1980s and will be capable of hauling 9,000-ton trains. KTZ highlighted that new models are cheaper, have greater energy efficiency and provide high reliability with lower maintenance costs. Allegedly, these locomotives will be assembled at the Electric Locomotive Kurastyru Zauyty manufacturing plant in Astana, which is owned by Alstom.

Earlier this week, Kursiv.media reported that Alstom was building four service centers worth €50 million, which would also provide 450 new jobs. Establishment of the first center is planned for the beginning of 2025 in the town of Shu in the Zhambyl region. 

Over the past 10 years, Alstom has invested roughly €120 million in Kazakhstan’s railway industry. The company has established seven production facilities, including the Electric Locomotive Kurastyru Zauyty (Electric Locomotive Plant) in Astana. The company provides jobs for more than 1,000 workers.