On Friday, General Electric's (NYSE:GE) Transportation unit announced that it has signed a "memorandum of understanding" with Russian firms Locorail and Yakutia Railways aimed at exploring a "strategic relationship" for modernizing the latter's diesel-electric locomotive fleet.
The memorandum envisions that GE will sell at least 100 FDL engine kits to Yakutia Railways over a five-year term, train the companies' employees to maintain and service the engines, and supply tooling and equipment necessary for the engines' upkeep. However, at this time, no actual agreement to sell the engines has been signed.
Locorail is a Dutch consortium that specializes in building railroads. It is jointly owned by three construction companies -- France's VINCI Concessions, Belgium's Compagnie d'Entreprises CFE, and the Netherlands' BAM PPP. Yakutia Railways is a Russian railroad transportation company and a subsidiary of JSC Russian Railways.