Trump’s dealmaking strategy has taken an extra shine with the recent US Wabtec and Kazakh railways $4.2 billion diesel locomotive supply and support contract signed on 22 September, on the sidelines of Kazakh President Kassym-Jomart Tokayev’s visit to New York for the UN General Assembly meeting. The deal provides for Wabtec to supply 30 new Evolution series TE33AT diesel 1,520 mm gauge locomotives to Kazakhstan Temur Zholy (KTZ), the national railway operator, annually from 2027-2036, and provide maintenance services. This is an extension of the current contract, which was set up to 2026. The diesel locomotives will be produced in Astana at Wabtec’s wholly owned Lokomotiv Kurastyru Zauyty factory, one that also exports to customers in the CIS region. This move is intended to support Kazakh Railways’ ongoing expansion and fleet renewal plans to gradually decommission locomotives that were built in the 1970s and 1980s. Much has been said about how it will boost Kazakhstan as a hub for the US-backed Middle Corridor, a transport route connecting Europe and China via Central Asia, Caucasus and the Caspian Sea bypassing Russia. However, a closer assessment of the deal in the current context provides a mixed picture.
What to Make of the $4.2 Billion Kazakhstan-US Locomotive Deal? | Royal United Services Institute
