) recently secured a $225 million contract to build 32
diesel-electric locomotives for the Multi-State passenger rail
locomotive procurement by the Illinois Department of
Transportation (IDOT.) For Siemens, this order marks its entry
into the US diesel-electric locomotive market.
On behalf of IDOT, the procurement is being done from 5 states
with a purchase option of 225 additional locomotives. The new
locomotives will achieve a maximum speed of 125 mph well equipped
with the Cummins QSK95 diesel engines and will be in compliance
with the Federal Environmental Protection Agency Tier 4 emissions
standards. The first delivery of locomotives is expected in 2016.
Siemens Rail System has over 30 years of experience in rail
services. These energy efficient locomotives will be built in
Siemens rail facility in California and all the main components
of the new locomotive will be produced and manufactured in the
United States. The strategic move is aimed to provide a cleaner,
safer and faster means of transportation for its rail passengers.
The manufacturing of these high performance diesel-electric
locomotives will also create job opportunities, improve
California's transportation infrastructure, strengthen the local
economy and reduce greenhouse gas emissions.
This new rail equipment can help operators to reduce costs and
operate the locomotives at higher speed at a comparatively less
maintenance schedule. At the same time, this new equipment will
accelerate and brake more quickly, reducing trip times for
passengers and is much more fuel efficient.
Siemens provides medical equipment, power generation,
transportation systems, automotive electronics, lighting, and
other similar facilities. Given its product breadth and
geographic diversity, the company is a major beneficiary of
increased spending as developing nations build up their
Siemens currently has a Zacks Rank #2 (Buy). Other stocks that
look promising and are worth a look are
Universal Electronics Inc.
), each carrying a Zacks Rank #2 (Buy).
AZZ INC (AZZ): Free Stock Analysis Report
GARMIN LTD (GRMN): Free Stock Analysis Report
SIEMENS AG-ADR (SI): Free Stock Analysis
UNIVL ELECTRS (UEIC): Free Stock Analysis
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