Sustains Jobs in Erie, Pennsylvania
FOR IMMEDIATE RELEASE October 25, 2004
Marianna Ohe (202) 565-3200
WASHINGTON, D.C.- The Export-Import Bank of the United States (Ex-Im Bank) today approved a $39.5 million loan guarantee to support the export by General Electric Co., Erie, Penn., of 25 state-of-the-art locomotives to modernize the locomotive fleet of a private sector railroad in Mexico.
Grupo Ferroviario Mexicano (GFM) will buy the 4400 horsepower diesel electric locomotives and lease them to its sole subsidiary, Ferrocarril Mexicano (Ferromex), to improve the railroad's efficiency and competitiveness. The railroad currently comprises 6,180 miles of track and carries 40-50% of Mexico's total freight.
Workers building locomotive modernization kits for Mexico's Ferromex railway at GE's plant in Erie, PA.
This Ex-Im Bank financing will preserve high-quality U.S. jobs in Erie, Pennsylvania, and at General Electric's sub-suppliers around the country, as well as support Mexico's infrastructure development, said Ex-Im Bank Chairman Philip Merrill.
A locomotive that was refurbished by Mexican workers with technical assistance from GE. The modernization kits will extend the machinery's life by 15-20 years.
BNP-Paribas, New York, N.Y., is the guaranteed lender on the transaction.
This will be Ex-Im Bank's second financing for Ferromex. In 1999, shortly after privatization of the state-owned railroad system in Mexico, Ex-Im Bank guaranteed financing for Ferromex's purchase of 50 GE locomotives.
Ex-Im Bank, the official export credit agency of the United States, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2003, Ex-Im Bank authorized financing to support $14.3 billion of U.S. exports. For more information, visit www.exim.gov.