GE's Unit Unveils its First EU Digital Pilot RailConnect 360
GE Transportation, a unit of General Electric Company GE, recently launched its first ever European digital pilot with DB Cargo, Europe’s largest rail operator. Per the deal, Deutsche Bahn will leverage GE Transportation’s RailConnect 360 Asset Performance Management Solution, enabling locomotive health status updates to enhance efficiency and spot repair issues to avoid any inconvenience due to system failure.
In collaboration with Amsted Rail, a major freight car component manufacturer, the company will offer Car Integrity Monitor service to enable asset monitoring capabilities in railcars. Sensors will be fixed on railcars, which will help Amsted receive real-time notifications related to the condition of key railcar components. The solution will be useful to an individual railcar or a complete train and ensure better and more informed decision-making capabilities.
Additionally, GE Transportation unveiled a range of Modernization products that will help update railroads’ aging fleets. The Modernizations are projected to improve fuel efficiency up to 10–15%, enhance operational efficiency by around 30% and boost locomotive’s ability to haul by nearly 50%, at a fraction of the price of a new locomotive. These solutions will significantly trim railroads’ maintenance costs and mission failures. Over the past five years, approximately 300 Modernizations have been offered to customers across the world.
With software and product advancements powered by Predix, GE Transportation is using its expertise in the industrial domain and technology leadership to aid extension of the life span of locomotives, decrease fuel consumption, lower emissions, improve velocity and enhance operations. Such projects will help the company’s Transportation segment earn better revenues in the coming quarters.
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Earlier this year, on Aug 30, 2016, the company acquired ShipXpress, a premier provider of cloud-based software solutions, for an undisclosed amount. ShipXpress provides its services to major North American railroads and Fortune 500 companies in the energy, agriculture, chemicals, and metal space, which is likely to expand GE’s Transportation portfolio and enrich its human capital as it will gain nearly 200 industry, technical, and software development experts employed by ShipXpress. The amalgamation of ShipXpress’ innovative software products and General Electric’s advanced sensing technology will further enhance the Predix platform of the latter.
General Electric is currently actively engaged in massive restructuring initiatives to create a simpler and nimbler firm. From a classic conglomerate with diversified business interests in financial services, media, industrial and technology-based operations, the company is pruning its operating portfolio to focus on core manufacturing businesses with a digital edge.
We remain encouraged by the restructuring endeavors of this Zacks Rank #3 (Hold) stock. Some favorably ranked stocks in the industry include Raven Industries Inc. RAVN, Crane Co. CR and Barloworld Ltd. BRRAY, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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