Wabtec and Kazakhstan Temir Zholy Sign $600 Million Memorandum of Understanding for FLXdriveTM Battery-Electric Shunters and NextFuelTM Liquid Natural Gas-Powered Locomotives

Rhea-AI Summary

Wabtec (NYSE: WAB) and Kazakhstan Temir Zholy (KTZ) have signed a significant memorandum of understanding for 150 FLXdrive battery-electric shunters and modernization of the mainline fleet into NextFuel LNG-powered locomotives. This agreement represents the largest sustainable technology investment by the CIS railroad, aiming to cut greenhouse gas emissions and operational costs. The battery shunters promise reduced fuel costs of $75,000 annually per unit and up to 97% lower maintenance. Production starts in 2024 at the LKZ facility in Kazakhstan.

Positive

• Agreement for 150 FLXdrive battery-electric shunters enhances Wabtec's sustainability profile.
• Estimated annual fuel savings of $75,000 per shunter.
• Up to 97% reduction in scheduled maintenance costs.
• NextFuel LNG locomotives promise doubled operational range and up to 26% decrease in fuel costs.

Negative

• None.

PITTSBURGH--(BUSINESS WIRE)-- Wabtec (NYSE: WAB) and Kazakhstan Temir Zholy (KTZ) signed a historic memorandum of understanding (MOU) for 150 FLXdrive^TM battery-electric shunters and modernization work to transform the mainline fleet into NextFuel^TM liquid natural gas-powered (LNG) locomotives. The investment marks the largest sustainable technology agreement by the CIS railroad, and will further revolutionize KTZ’s mainline and yard operations, while significantly reducing greenhouse gas emissions and operating costs.

“Since early 2000, KTZ has been the regional transportation leader in adopting state-of-the-art technologies and is honoring that legacy by pioneering the transition to a low-carbon rail network with Wabtec’s FLXdrive battery-electric technology,” said Rafael Santana, President and CEO for Wabtec. “Battery power is an ideal solution to reduce the environmental impact and costs of yard operations. Using the FLXdrive in a rail yard can significantly improve local air quality and reduce noise for neighboring communities. We are proud to partner with KTZ on this strategic investment.”

The FLXdrive shunters will be 100% battery powered with more than 1.5 megawatt hours of energy. These new shunters are a zero-emission solution for KTZ, enabling the railroad to reduce the fuel cost of its yard operations by approximately $75,000 per shunter per year. The FLXdrives also will reduce scheduled maintenance by up to 97% and avoid costly electrification investments.

To support KTZ’s mainline fleet sustainability efforts, Wabtec will provide NextFuel kits to convert the traditional diesel locomotives to LNG. Wabtec’s NextFuel LNG mainline locomotives will increase the operational range of travel by more than two-fold – from 1,300 km to 3,000 km and decrease fuel costs by up to 26%.

Wabtec and KTZ also will collaborate on digital solutions for the fleet. The first digital product is Trip Optimizer, providing fuel-efficient operation modes for freight trains to reduce fuel consumption by at least 5%. Pilot testing is planned for the fourth quarter and with successful results it will be deployed on KTZ locomotives.

Wabtec will build the FLXdrives and convert the locomotives to LNG at the LKZ facility in Nur Sultan, Kazakhstan. Production will begin in 2024.

About Wabtec

Wabtec Corporation (NYSE: WAB) is focused on creating transportation solutions that move and improve the world. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 150 years and has a vision to achieve a zero-emission rail system in the U.S. and worldwide. Visit Wabtec’s website at: www.WabtecCorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220920005416/en/

Media Contact:

Tim Bader

Wabtec

682-319-7925

tim.bader@wabtec.com



Investor Contact:

Kristine Kubacki, CFA

412-450-2033

Kristine.Kubacki@wabtec.com

Source: Wabtec Corporation

FAQ

What did Wabtec and Kazakhstan Temir Zholy announce?

Wabtec and Kazakhstan Temir Zholy signed a memorandum of understanding for 150 battery-electric shunters and modernization into LNG-powered locomotives.

How much will the FLXdrive shunters save in fuel costs?

The FLXdrive shunters are expected to save approximately $75,000 in fuel costs per unit annually.

When will production of the FLXdrive shunters begin?

Production of the FLXdrive shunters will commence in 2024 at the LKZ facility in Kazakhstan.

What are the benefits of the NextFuel LNG locomotives?

NextFuel LNG locomotives will increase operational range from 1,300 km to 3,000 km and reduce fuel costs by up to 26%.

What is Wabtec's role in the agreement with KTZ?

Wabtec will supply and manufacture the battery-electric shunters and convert locomotives to LNG.