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When GE Transportation signed a framework agreement last month with China’s Ministry of Railways (MOR) to collaborate to manufacture high-speed technology in the United States, GE said it would be the first U.S.-based company ready to supply high-speed passenger trains for proposed systems in states such as Florida and California.

The agreement — which was reaffirmed last week when the parties signed a letter of intent — symbolizes the growing interest in developing high-speed rail systems in the United States.

For GE and MOR, it also symbolizes a natural progression in a more than decade-long partnership. The parties have been working together since the 1990s to supply rail-related technology, said GE Transportation President and Chief Executive Officer Lorenzo Simonelli.

“That’s led to considerable exports to the United States. We manufacture locomotives there now, with the components coming form Erie,” he said during a Jan. 26 interview. “This is a long-standing partnership that’s evolved and this is another step.”

Next up: signing a formal joint venture agreement to manufacture high-speed rail technology in the United States. Simonelli expects the agreement will be made official later this year. During the next several quarters, GE plans to decide where it will manufacture the high-speed trains. The Erie, Pa.-based company’s existing manufacturing facility is an option.

“We do have capabilities in our existing manufacturing facility, but we need to determine our facility needs as part of the joint venture process,” he said.

High-speed train manufacturing is new territory for GE Transportation, which would be able to meet federal Buy America requirements for stimulus spending under its new partnership, said Simonelli.

“We’re able to take [China’s] technology and bring it to the United States. We would be the first manufacturing-based company to have high-speed rail technology in the U.S., and we’re looking forward to it,” he said. “We have a good knowledge base and we’ll be able to apply that to high-speed rail, as well.”

GE has said in press releases that it’s interested in bidding on high-speed rail projects in California and Florida, but the company is looking at projects in other states, as well, Simonelli said. In the meantime, the company is positioning itself to seize those opportunities as they come.

“We are encouraged by Obama’s continued commitment to high-speed rail in America,” Simonelli said. “That’s a large element of infrastructure investment that will translate to a lot of opportunities, and we’ll be ready when the market and country is ready.”

— Angela Cotey