NEWAG SA has entered into a contract with Olavion for the delivery of 4 Dragon 2 locomotives, which also includes an option for the modernization of the vehicles using a diesel module, as well as a potential order for an additional 16 locomotives, according to the Railway Supply magazine.

the supply of locomotives

Under the agreement, Olavion will purchase 4 locomotives from NEWAG at a total maximum price of 74 million Polish zlotys.

The delivery term for the first locomotive is 16 months, with the subsequent 3 units from the base order being supplied every two weeks.

The ES3000 battery-powered shunting locomotive.

The estimated value of the contract in the base scope will amount to nearly 70 million Polish zlotys, and if the option is exercised (possible order for up to 16 additional locomotives, including Dragon 2, Dragon 2 with access module, Dragon 2 MST, Griffin, and Gryphon), the value will be 365 million Polish zlotys net.

Furthermore, the delivered vehicles will be covered by a 24-month manufacturer’s warranty.

The Unimot Group can exercise the aforementioned option until the end of 2025 and is not obligated to purchase all locomotives included in the purchase option pool.

The decision regarding the acquisition of additional locomotives will be made after considering the economic justification for their procurement.

Assuming that the option to purchase all 16 locomotives is realized, the total cost for these 16 locomotives will amount to 304 million Polish zlotys at the prices valid in 2023.

The cooperation between the parties will also include NEWAG providing planned maintenance services during the 24-month warranty period.

The agreement was concluded subject to obtaining all corporate approvals and Olavion’s financing. According to the estimates of the Unimot Group, the fulfillment of the aforementioned conditions for the first 4 locomotives will occur by the end of July 2023.

As a result of the contract, Olavion will increase its fleet of electric locomotives, enabling the expansion of its operations and strengthening its position in the market.

The provision of the possibility to acquire new locomotives will allow flexible response to changing market demand and the needs of the Unimot Group in terms of rolling stock.

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