US train manufacturer GE Transportation and Brazilian rail operator MRS Logistica have signed a locomotive purchase agreement worth over 600mn reais (US$349mn).
GE Transportation will supply the Brazilian firm with 115 AC44 locomotives, delivering 60 units in 2011, and the remaining units between 2012 and 2015, according to a GE Transportation release.
MRS also has an option to buy another 100 units. The firm plans to add an additional locomotive to each of its iron ore trains.
The deal represents the largest locomotive purchase agreement in the history of Brazil, according to GE Transportation president Lorenzo Simonelli.
The purchase is being partly financed by national development bank BNDES, news service Agencia Estado reported.
Simonelli announced the deal during the InnoTrans 2010 rail exhibition, held in German capital Berlin from September 21-24.
GE Transportation is part of US conglomerate General Electric.