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Alstom signs two Letters of Intent to expand its activities in Kazakhstan

On the occasion of Innotrans, the world’s biggest railway tradeshow in Berlin, Alstom and KTZ agreed on the possibility for Alstom to acquire a larger share in their joint company EKZ (a joint venture between Alstom, 25%; KTZ, 50% and Transmashholding, 25%) and expand its activities to maintenance and signalling in Kazakhstan.

Henri Poupart-Lafarge, President of Alstom Transport and Askar Mamin, President of Kazakhstan Temir Zholy (KTZ - the Kazakhstan national railway company), signed two Letters of Intent which mark the beginning of negotiations with contracts due to be signed in the upcoming months. 

Once Alstom increases its share in the JV, EKZ will become part of the company’s global supply chain and will increase export and localisation of its products. The first LOI allows EKZ to maintain KTZ fleet of modern electric locomotives in EKZ’s factory in Astana.

The second LOI relates to the development of a signalling competence centre as part of the KazElectroPrivod (KEP)[1]  joint venture – equally owned by Alstom and its Kazakh partner, Kamkor, a subsidiary of KTZ.

The new centre would help developing local engineering competences. 

Henri Poupart-Lafarge said: “Kazakhstan’s favorable investment climate allows Alstom to expand its activities in the CIS region. We are pleased by the perspective of playing a bigger role in our joint venture in Astana, reinforcing the proximity to our local customers and partners. We are also delighted to be involved in the maintenance of modern locomotives and the implementation of signalling projects in the country. These activities are key to guarantee seamless and safe operations. KTZ can be sure they have obtained the best and most cost-effective solution”. 

Alstom started localising its signaling activity through its local JV, KazElectroPrivod, in 2013, after signing a contract with KTZ for the supply of 10,000 point machines over a 10-year period.

Up until now, around 1,500 point machines have already been supplied to the customer and installed to replace old equipment. 

With 14,000 km of track, the Kazakh railway network is the world’s third biggest using the 1,520 mm track gauge and represents a substantial market for signalling equipment as well as maintenance activities. 

[1]  established in 2013