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(4) Contractual partnerships have meant that 75% of GM EMD-powered
locomotives supplied to railway operators in Europe have been manufactured in
alliance with associates. EMD expects to announce new orders soon under further
partnership agreements. However, in the long term, the company says it will eventually
be able to establish its own manufacturing bases in Europe.
(5) Mr Don Raih, the director of GM EMD’s international business division
explained the company’s philosophy to IRJ (International Railway Journal), and
outlined its plans for future development in the European market. He said: “ Our
locomotive business is based on two key pillars – tailoring the technology to
1
local
needs, and working in partnership. In Europe, our business strategy focuses on
providing innovative products, services, and financial solutions. Clearly, the market is
changing rapidly with increasing commercialization and privatization. In addition,
diesel lcoomotive fleets in Europe are getting old and reaching the stage where they
have to be replaced. We have a long history of having our locomotives built under
license in Europe, so we are well placed to continue to serve the market. In Britain, we
already have a large fleet of basic locomotives which we are now proposing to
introduce in modified versions in continental Europe.
(6) At the moment we are talking to a lot of people about possible new orders,
but these are going to be in small rather than large quantities. We will maintain our
partnering policy until we can gain momentum
2
and the volume of orders picks up.
Then, we will consider setting up local production facilities. I think this could happen
in the next two or three years, and certainly within the next five years.
(7) Once we see the smaller fleets established in Europe, I think the effect of
people seeing the new locomotives in operation will have a knock-out effect with an
increase in the size of subsequent orders. This should provide the momentum for us to
set up our own facilities, perhaps in one of the major regions such as France or
Germany.
(8) The face of railways in Europe is changing, and we realize that we must
respond to our customers’ needs. The development of our Class 66 JT 42CWR and
Class 67 JT 42HW-HS high-speed locomotives is only a part of this overall change. To
meet the needs of the market, we also expect to provide a lease fleet of locomotives for
customers in Europe. Among the German operators which have already shown a
tangible interest in EMD’s Class 66 locomotives is the regional operator, Cologne Port
& Railway, which has agreed to lease one locomotive for hauling regional freight and
long distance intermodal container traffic as soon as
3
it is certified by the German rail
safety authority. This demand is expected to extend to other parts of continental
Europe. Another Class 66 locomotives is currently being modified in Tilburg, the
Netherlands, to enable it to be used in cross-border services between Germany, the
Netherlands, and Belgium.
(9) In the Community of Independent States (CIS), GM EMD is developing a
modern 2983kW heavy-haul diesel locomotive known as Tera 1, which combines
Russian and American technologies. In partnership with LTZ (Lyudinovo
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