Bombardier Transportation signed a nine-year agreement valued at $867 million US to supply 200 diesel locomotives to a passenger train operator in Germany.
The first $90 million delivery of 20 locomotives to DB Regio AG — a subsidiary of passenger train operator Deutsche Bahn AG — will take place in mid-2013.
The TRAXX locomotives, which have four diesel engines, meet the European Union's new stringent emissions standards, the train manufacturer said in a news release.
They also reduce fuel consumption, exhaust emissions and life-cycle costs.
"The use of these 200 TRAXX multi-engine diesel locomotives will result in a massive reduction of carbon dioxide over their life span," Ake Wennberg, Bombardier Transportation's locomotives division president, said in a release.
Deutsche Bahn AG and its subsidiaries already own and operate a fleet of more than 680 TRAXX locomotives.
Final assembly of the new locomotives will take place in Kassel, Germany. Components of the locomotives will be made in Poland and various locations in Germany, while product development will be completed in Germany and Switzerland.
The railway division of Bombardier Inc. has sold more than 1,500 diesel and electric TRAXX locomotives to transport goods and passengers.
Berlin-based Bombardier Transportation has sold more than 100,000 vehicles in some 60 countries around the world.
Last December, Bombardier won a $157 million contract to supply 36 electric locomotives to German leasing company Railpool GmbH.