OREANDA-NEWS. October 10, 2008. Alstom Transport and the Russian firm, Transmashholding (TMH), announced the signature of a memorandum of understanding on a strategic partnership between the two companies. In addition, Alstom Transport and TMH will create a joint venture specialized in double-deck coaches to serve the Russian market, reported the press-centre of Transmashholding.

Alstom Transport and the Russian firm TMH, the major supplier to Russia’s rail transport operator, RZD (Russian Railways), have signed a memorandum of understanding to establish a strategic partnership. This memorandum provides for technical cooperation between the two firms and the possibility for Alstom Transport, subject to a due diligence audit and a final agreement between the parties, to buy a 25% plus one share in TMH equity.

In addition, Alstom Transport and TMH have decided to create a joint venture in the area of double-deck coaches. TMH will hold a 51% stake in the new firm, known as “TMH-Alstom DV”, with Alstom Transport holding a 49% stake.

The company has been created for the purpose of responding in October 2008 to a call for tenders launched by Russian Railways (RZD) to manufacture 1,210 double-deck passenger cars. Having pre-qualified in May 2008 to take part in this call for tenders, Alstom Transport was chosen by TMH as its technological partner in proposing a modern, innovative solution to RZD.

The rolling stock designed by TMH-Alstom DV has never before been manufactured in Russia. It consists of double-deck “hotel” cars equipped with every convenience – couchettes, restaurant, showers – for passenger travel over sometimes very long distances. If TMH-Alstom DV wins the contract, these trains will most likely be manufactured in Russia's Tver region, northwest of Moscow, and would connect the cities of Saint Petersburg, Moscow and Sochi at speed of up to 160 km/hr.

In the future, Alstom Transport and TMH are planning to create a joint platform for the manufacture of freight and passenger locomotives. This platform will be adapted to Russian railway standards and will draw on expertise within both Alstom and TMH in the design and manufacture of locomotives. Russia has a potential market of 1,000 locomotives annually between now and 2030.