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Wabtec Wins Big Kazakhstan Locomotive Order; Jobs Pledge Sways Union to Back Rail Merger

By Mark R. Long | WSJ Logistics Report

 

From left, Wabtec CEO Rafael Santana, Commerce Secretary Howard Lutnick, Kazakhstan President Kassym-Jomart Tokayev and KTZ CEO Talgat Aldybergenov. PHOTO: COMMERCE DEPARTMENT

Wabtec won a multiyear contract to supply 300 locomotives to Kazakhstan’s national railway, a $4.2 billion deal that President Trump called the largest railroad-equipment purchase in history. The Journal’s Kelly Cloonan writes that the announcement followed a call between Trump and Kazakhstan’s president, Kassym-Jomart Tokayev.

Pittsburgh-based Wabtec will provide Evolution Series locomotives, as well as long-term fleet maintenance and support to Kazakhstan Temir Zholy, or KTZ. The deal follows Wabtec’s $401 million agreement in October of last year to supply locomotives to KTZ.

The Kazakh railway is working to make its network the primary link between Europe and Asia. In a social-media post, Secretary of Commerce Howard Lutnick said the deal would support thousands of jobs in Texas and Pennsylvania and power connectivity on the “Middle Corridor.” This route is an alternative to the northern corridor through Russia and ocean shipping via the Suez Canal.

 
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U.S. Railroads

Note: Rail segments shown are those for which the company is listed as an owner. As of February.
Source: Bureau of Transportation Statistics

Union Pacific swayed the nation's largest railroad union to back its proposed merger with Norfolk Southern by promising job protection for workers.

The deal with the transportation division of the International Association of Sheet Metal, Air, Rail and Transportation Workers grants lifetime job security and preferential hiring for terminal employees affected by the proposed merger. The SMART-TD union initially opposed the deal announced in July, saying mergers often lead to job cuts and poorer service. It now says it will express its backing for the merger to federal regulators.

If the merger receives regulatory and shareholder approval, it would establish the country's first transcontinental railroad. Canadian Pacific Kansas City and some groups representing shippers, including the American Chemistry Council, have said they oppose the deal.

 

Quotable

“Those who have a job when the merger is approved will continue to have one.”

— Union Pacific CEO Jim Vena
 

Global Logistics

Freightliner's terminal in Manchester, England. PHOTO: ADAM VAUGHAN / SHUTTERSTOCK

CMA CGM said it would acquire Freightliner UK Intermodal Logistics, as the French ocean shipping giant expands its global logistics capabilities. The Marseilles-based carrier will purchase the Freightliner brand in the U.K., the company's inland terminals there, and its rail and road operations. Financial details weren't disclosed for the deal, which is expected to close in 2026.

CMA CGM called the U.K. a strategic market, adding that the acquisition would help it connect sea, rail and road more efficiently. The Journal’s Aimee Look writes that Freightliner’s businesses in heavy haul, Rotterdam rail feeding and in Poland/Germany will remain separate. The company’s billionaire chief executive, Rodolphe Saadé, committed in March to invest $20 billion in the U.S. over four years as President Trump pushes for a revival of the American maritime sector.

 
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Number of the Day

2.2 Million

Loads posted to the DAT truckload spot market in the week ended Sept. 20, up 10% from the week before to the highest level for Week 38 since 2022

 

In Other News

A new U.S. interest-rate easing cycle could lead to more commercial property sales and lending, and make some construction projects more likely to move forward. (WSJ)

A federal judge said construction could restart at the Revolution Wind energy project off Rhode Island’s coast, following a Trump administration stop-work order in August. (WSJ)

Nvidia and OpenAI announced a partnership that includes a $100 billion investment by the chip maker and a massive data center buildout. (WSJ)

Vietnamese food-and-beverage conglomerate Masan Consumer plans to sell a minority stake for up to $1 billion ahead of its IPO. (WSJ)

Shares of Porsche fell nearly 8% after the sports-car maker issued its fourth profit warning of the year. (WSJ)

Car carrier Polaris International is launching a new bulk shipping arm focusing on fronthaul routes and agricultural commodities. (TradeWinds)

Japan’s Kubota unveiled what it said is the world’s first self-driving tractor running on hydrogen fuel cells. (Nikkei Asia)

The U.K. government approved a plan by London’s Gatwick Airport for regular service at its northern runway, which will enable additional air cargo capacity. (Air Cargo News)

Copenhagen and Oslo airports closed for hours due to drone sightings, following a string of European airspace disruptions. (WSJ)

Roadside truck inspections rose 67% year-over-year to about 8,000 between June 25 and Aug. 31, as enforcement of English-language proficiency standards increased, federal data show. (Transport Topics) 

 

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

 
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