Ex-Im Bank commits to South African locomotive deal

Ex-Im Bank commits to South African locomotive deal    The U.S. Export-Import Bank last week approved a loan guarantee in excess of $100 million as part of a sale of GE Transportation locomotives to South Africa's Transnet.
   The bank also approved a preliminary commitment for more than $200 million for purchases of additional locomotives by Transnet. Ex-Im Bank financing will support a partnership between GE Transportation, Transnet and Transnet Rail Engineering (TRE).
   GE Transportation said the contract with Transnet will create or sustain over 600 jobs at its factories in Erie and Grove City, Pa., and among its U.S. suppliers.
   Ten fully assembled GE Model C30ACi locomotives and U.S.-made components for high-value locomotive kits will be shipped from GE’s Erie plant to TRE in South Africa.
   The first two assembled GE locomotives were introduced to the public in mid-February during a trackside ceremony in Pretoria, South Africa. GE reports that three C30ACi locomotives can haul the same amount of freight as four older locomotives and save about 600,000 liters of fuel a year while lowering carbon emissions.
   “The GE-Transnet-Ex-Im Bank partnership is a significant investment in job development, economic advancement and infrastructure grown on both sides of the Atlantic,” said Lorenzo Simonelli, president and chief executive officer of GE Transportation, in a statement.
   Ex-Im Bank developed customized, tailor-made financing that was designed specifically to meet the needs of Transnet and provide financing for both the work performed by GE in the United States and for TRE in South Africa. Ex-Im Bank’s Transportation Division processes applications for railroad export financing, as well as other transportation exports. Barclays Bank in London is the guaranteed lender.
   Transnet is a large South African rail, port and pipeline company, based in Johannesburg. The company’s stock is owned by the South African government's Department of Public Enterprises.
   During the first quarter of fiscal year 2011, Ex-Im Bank approved $8 billion in total financing authorizations, supporting nearly $9.3 billion in export sales.