GE Transportation, a division of North American GE, is implementing an ambitious plan of nationalization of the locomotive Evolution ES43BBi, under production at the company plant in Contagem (MG). Having developed new suppliers, GE plans to conclude the nationalization work of that locomotive within three years. It is a lower term, for example, to the five years expended at AC44, first nationalized model of company in Brazil.
Ensure a local content index higher than 60% for the locomotive production is important to gain access to the Finame (Machine and Equipment Financing) financing line, belonging to the National Bank for Economic and Social Development (BNDES). Evolution is registered at Finame. But, there are other incentives. “The most important factor to the railroads, when they purchase a locomotive, is the reliability, the operational stability. The after sale service gets stronger when it does not depend on suppliers worldwide”, said Rogério Mendonça, CEO of GE Transportation for Latin America.
A first contact, for selling of seven Evolution unities, has been closed in 2014 with Klabin, the largest manufacturer of paper for packaging in the country. The forecast is that Evolution starts operating commercially at the beginning of 2016, but the rail adjustment tests shall begin at the next semester.
Mendonça has affirmed that there are logistics and operational challenges: “The fiscal complexity is very complicated with a higher number of local suppliers. But we understand that there are several advantages which justify the nationalization.”
Evolution shall have a primary nationalization index of 40%, which shall reach 60% within 2017. In order to be concentrated on the project, GE has anticipated Dash 9 nationalization timetable, another model produced in Contagem. The Dash 9 nationalization anticipation has contributed to the Evolution development, said Guilherme Gandra, chief of machines and equipments accreditation department of BNDES.
Evolution is going to increase the local content indexes under a process known within the Bank as Progressive Nationalization Plan (PNP). The plan foresees steps to reach the 60% of nationalization required by BNDES. Gandra said that there is accompaniment, supplier visits and auditing to prove the compliance with PNP.
Previous to the Evolution development, which project has been conceived in Brazil in order to meet the specific conditions of traffic in metric gauge railroads in the country, GE had nationalized two other models: AC44, purposed to broad gauge railroads (1.60 meter) and heavy freight, and Dash9, a locomotive created to meet metric gauge railroads in the United States but has been adapted to the Brazilian market. Evolution has similar application to Dash 9, but is smaller and lighter. It can operate in networks with operational restriction such as bridges and old tunnels.
Mendonça said that the company has developed 10 to 15 new local suppliers to meet Evolution production. They are added to other 65 national companies which had worked at AC44 and Dash9. “They are global suppliers because, after being certified, are able to supply to any GE plant in the world.”
Evolution nationalization includes items such as, cockpit, trucks (structures which incorporate wheels and engines) and the platform, which is the chassis of the locomotive. “We have been involved in the Evolution project for eight months and have had to invest R$ 3 million to appropriate the plant”, said Bruno Carvalhaes, partner director of MecBrum Industrial, in Pedro Leopoldo (MG). Other company involved at the project is Metalúrgica Riosulense, from Rio do Sul (SC), responsible for items such as traction engine and part of the locomotive chassis.
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