United Group, GE settle on major rail deal

The partnership extension between Australian engineering firm UGL and the General Electric subsidiary represents a vote of confidence in the country's resources and rail freight sectors.
The firms estimate the annual value of their relationship to be $300 million, based on forecast sales of $150 million in spare parts, maintenance and support services and a further $150 million in new locomotives.
UGL Rail will remain the Australian distributor of GE’s US heavy-haul locomotives, including the energy and emissions efficient Evolution Series.
UGL Rail will continue to provide spare parts, maintenance and servicing to GE locomotives and will design and build locomotives in Australia using GE technology.
UGL managing director and chief executive Richard Leupen said the company was delighted to formalise its long-term relationship with GE Transportation, which has already been running for more than 40 years.
“This long-term agreement will support UGL’s rail operations throughout Australia and help cement our position as Australia’s leading supplier of rail solutions,” Leupen said.
GE Transportation president and chief executive Lorenzo Simonelli said the two companies looked forward to the continued support of their customers in the resources and freight industries, which are such an integral part of Australia’s economy.
“GE Transportation is pleased to announce this relationship with UGL to service our mutual customers in Australia with the most technologically advanced heavy-haul locomotives in the world,” Simonelli said.
“Together, we’ve been able to increase hauling power for customers while reducing fuel consumption and emissions.
“Today’s announcement is a testament to our commitment to Australia’s rail infrastructure.”
Approximately 500 locomotives from GE Transportation and UGL Rail are currently in use throughout Australia.
GE’s Evolution Series locomotive represents a $US400 million investment by GE over eight years, with GE Transportation having already sold more than 3,200 of the locomotives.
The Evolution Series locomotive is 5 per cent more fuel efficient, generates 40 per cent lower emissions than previous locomotives and saves approximately 300,000 gallons of fuel over its lifetime.
Besides Australia, Evolution Series locomotives are operating in the US, Canada, Mexico, China, Mongolia, Kazakhstan and Egypt.
Approximately 17,000 GE locomotives are in use in more than 50 countries worldwide.