Kazakhstan to pay $14 mln for Wabtec locomotives, four times global price
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Kazakhstan plans to buy locomotives from US company Wabtec for about $14 million each, four times the global average price. National railway KTZ cited service maintenance costs as the reason for the premium. The deal has raised questions about procurement efficiency amid budget constraints.
The Price Gap
Kazakhstan is set to pay approximately $14 million per locomotive from Wabtec, compared to a global benchmark of around $3.5 million for similar models. KTZ officials stated during a briefing on railway industry development that the higher price includes a multi-year maintenance and service package. The explanation has not fully alleviated concerns about cost competitiveness.
Procurement Context
The purchase is part of Kazakhstan's broader effort to modernize its aging locomotive fleet, which averages over 25 years in service. KTZ has previously contracted with Wabtec for locomotive upgrades and spare parts. The company's monopoly on certain rail technologies limits alternative supplier options.
Price Comparison with Previous Purchase
The transcript notes that earlier purchases of similar locomotives cost $3.7 million per unit, compared to the current contract price of $14 million. This specific previous price point was not mentioned in the article.
Previous Purchase Price Comparison
The transcript reveals that Kazakhstan previously purchased similar Wabtec locomotives at $3.7 million per unit, compared to the current contract price of $14 million. This specific prior price point was not included in the article.
What's Next
KTZ is expected to finalize the contract terms by the end of the third quarter. It remains unclear whether the government will seek independent audits or renegotiate pricing amid public scrutiny.
3 sources
Kazakhstan to pay $14 mln for Wabtec locomotives, four times global price
