Siemens today announced that it has been awarded a $225 million contract to build 32 diesel-electric locomotives for the Multi-State passenger rail locomotive procurement being led by the Illinois Department of Transportation (IDOT.) The procurement is being done on behalf of the Departments of Transportation from 5 states: Illinois, California, Michigan, Washington and Missouri. The project includes options for 225 additional locomotives. The first locomotives are set to be delivered in 2016.
The Charger locomotives will be built at the Siemens rail manufacturing facility in Sacramento, Calif. The plant, which has been in operation for almost 30 years, is powered up to 80 percent by two megawatts of solar energy and currently employs over 800 people.
“As a global leader in rail innovation, we are thrilled to be able to showcase our new passenger rail, diesel-electric locomotive technology in this country,” said Michael Cahill, president of Siemens Rail System in the U.S. “These state-of-the-art, energy efficient locomotives will be built in America using renewable energy and will provide a cleaner, safer and faster means of transportation for rail passengers.”
All main components of the new locomotive will be produced in Siemens plants in the United States – including traction motors and gearboxes in Norwood, Ohio and propulsion containers in Alpharetta, GA. The diesel engines will be manufactured by Cummins in its Seymour, Indiana plant. Siemens has established a robust and diverse base of U.S. suppliers across the country that currently provides components and parts for all of Siemens’ U.S. passenger-rail vehicle production.“We are happy to be moving forward with this exciting and important partnership with Siemens,” said Illinois Transportation Secretary Ann. L. Schneider. “The manufacturing of these high performance diesel-electric locomotives will not only create pride in the fact that they will be made right here on American soil but also create much needed jobs.”
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts