Wabtec Wins $248 Million Locomotive Order from Winning Consortium Simandou

Rhea-AI Summary

Wabtec (NYSE: WAB) has secured a $248 million order for Evolution Series ES43ACmi locomotives and services from Winning Consortium Simandou (WCS) for their iron ore operations in Guinea. This follows a previous order from SimFer, bringing the combined value to over half a billion dollars, marking one of Wabtec's largest international locomotive deals in five years.

The ES43ACmi locomotives feature a 4,500HP Evolution Series engine, dual-cab design, and meet UIC 3a and EPA Tier 3 emission standards. Deliveries will begin in 2025. The locomotives will operate on the 600-km TransGuinéen Railway, connecting the Simandou mine to the Port of Morebaya. The project involves WCS developing blocks #1 and #2 of the Simandou deposit, containing over 1.8 billion tonnes of estimated iron ore reserves.

Positive

• Secured major $248 million locomotive order from WCS
• Combined Simandou project orders exceed $500 million
• Delivery pipeline secured through 2025
• Expanding presence in strategic iron ore infrastructure project

Negative

• None.

Insights

Industrial Equipment & Mining Analyst

The $248 million locomotive order from WCS, coupled with the earlier SimFer contract, positions Wabtec (WAB) for substantial revenue growth in its international operations. The combined deals, valued at over $500 million, will significantly boost Wabtec's backlog and provide steady revenue streams starting in 2025.

The strategic importance of this win cannot be overstated. Simandou represents the world's largest untapped high-grade iron ore deposit, with WCS's blocks containing over 1.8 billion tonnes of estimated reserves. This positions Wabtec as a key infrastructure provider in one of the most significant mining projects globally. The 600-km TransGuinéen Railway project creates potential for additional orders and long-term service contracts.

The deal showcases Wabtec's competitive advantages in harsh-environment operations and environmental compliance, with the ES43ACmi locomotives meeting both UIC 3a and EPA Tier 3 standards. The company's commitment to local employment and business development in Guinea also aligns with growing ESG requirements in the mining sector, potentially leading to preferred vendor status for future African mining projects.

Supply Chain & Logistics Expert

The scale of the TransGuinéen Railway project underscores its transformative potential for West African logistics infrastructure. Wabtec's ES43ACmi locomotives will be critical in establishing a reliable supply chain for one of the world's most significant iron ore developments. The dual-cab design and proven performance in high-temperature environments are essential features for maintaining consistent operations in challenging conditions.

The timing of deliveries starting in 2025 aligns with the projected ramp-up of mining operations, suggesting careful coordination in the project's supply chain planning. This infrastructure development could potentially reshape regional trade dynamics, creating new logistics corridors and economic opportunities beyond just iron ore transportation.

The project's success could establish a blueprint for future mining infrastructure developments in Africa, potentially leading to additional opportunities for Wabtec in the region. The company's commitment to local capacity building and maintenance support is important for ensuring long-term operational reliability of this strategic logistics corridor.

PITTSBURGH--(BUSINESS WIRE)-- Wabtec Corporation (NYSE: WAB) today announced a US$248 million order for Evolution Series ES43ACmi locomotives and services from Winning Consortium Simandou (WCS, a Baowu & Winning joint venture) to support their rail operations at the high-grade iron ore project, located in the east of Guinea. The agreement follows a locomotive order a few months earlier from SimFer (a Rio Tinto joint venture) to serve its operations at Simandou. The combined orders for the project, valued at more than half a billion, represent one of Wabtec’s largest international locomotive agreements in the past five years.

“As the world’s largest untapped high grade iron ore deposit, Simandou represents a transformational economic opportunity for Guinea, and Wabtec’s commitment extends beyond delivering advanced locomotive solutions to ensure the success of this critical initiative in partnership with WCS and SimFer,” said Wabtec’s Regional Vice President of Sub-Saharan Africa, Mpilo Dlamini. “We are also committed to the development of Guinea by fostering local employment, developing indigenous talent, and empowering local businesses to support the operation and maintenance of this vital rail network.”

The ES43ACmi is a dual-cab locomotive with a 4,500HP Evolution Series engine. The locomotive provides exceptional fuel efficiency, and proven performance in harsh, high-temperature environments, like eastern Guinea. It is also capable of meeting UIC 3a and the U.S. Environmental Protection Agency’s Tier 3 emission standards. Wabtec will begin delivering locomotives for the Simandou project in 2025.

“This locomotive order with Wabtec is another important milestone for the Simandou project,” said WCS CEO Mr. Zhang Cheng. “As work continues to build the TransGuinéen railway, we will have the equipment resources in place that support the high international standards that we’ve committed to deliver.”

The 600-km TransGuinéen Railway is under construction to connect the Simandou mine and the Port of Morebaya. The Simandou mountain range, located in the southeast of the Republic of Guinea, contains the world's largest untapped reserve of high-grade iron ore. WCS is developing blocks #1 and #2 of the Simandou iron ore deposit, which currently account for more than 1.8 billion tonnes of estimated reserves.

About Wabtec
Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. 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 is the worldwide leader in the decarbonization of freight rail. Visit Wabtec’s website at www.wabteccorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128817737/en/

Media Contact:

Tim Bader

682-319-7925

tim.bader@wabtec.com

Investor Contact:

Kyra Yates

817-349-2735

kyra.yates@wabtec.com

Source: Wabtec Corporation

FAQ

What is the value of Wabtec's (WAB) recent locomotive order from WCS?

Wabtec secured a $248 million order from Winning Consortium Simandou for Evolution Series ES43ACmi locomotives and services.

When will Wabtec (WAB) begin delivering locomotives for the Simandou project?

Wabtec will begin delivering locomotives for the Simandou project in 2025.

What is the total value of Wabtec's (WAB) combined Simandou project orders?

The combined orders for the Simandou project exceed half a billion dollars, including orders from both WCS and SimFer.

What are the specifications of Wabtec's (WAB) ES43ACmi locomotives for the Simandou project?

The ES43ACmi is a dual-cab locomotive with a 4,500HP Evolution Series engine, meeting UIC 3a and EPA Tier 3 emission standards, designed for high-temperature environments.

How long is the TransGuinéen Railway where Wabtec's (WAB) locomotives will operate?

The TransGuinéen Railway is 600 kilometers long, connecting the Simandou mine to the Port of Morebaya.