CN announced today its plans to acquire 161 locomotives to its fleet in anticipation of future traffic growth and for the improvement of operational efficiency. In this acquisition CN is adding 65 new high-horsepower locomotives and 96 second-hand high–horsepower locomotives to be upgraded.
“CN's locomotive acquisition program represents a balanced, capital-effective approach to handle expected volume growth over the next two to five years and to meet the locomotive requirements resulting from customer focused service plans,” said Keith Creel, Executive Vice President and CEO. “The new and used motive power will enhance operational efficiency and reduce fuel consumption by permitting the retirement of older, high-maintenance locomotives and the cascading of less fuel-efficient main-line units into less-demanding yard and local switching operations, while providing additional locomotives to accommodate increased traffic.”
The expected delivery of the new locomotives is expected in 2013-2014. The new additions are specifically 35 new ES44AC locomotives from GE Transportation and 30 new SD70Ace locomotives from Electro-Motive Diesel.
“The program includes the acquisition of alternating-current locomotives (AC), which will represent a first for CN. Our current fleet of approximately 1,900 locomotives employs direct-current (DC) traction technology, which has served us well because of the overall favourable grades of our network,” said Creel.
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The second-hand additions include 42 GE Dash 8-40C locomotives, 11 leased GE Dash 8-40C locomotives and 43 second-hand EMD SD60 locomotives that will be upgraded to CN standards.
“A robust, fuel-efficient locomotive fleet is critical to CN's plan to take advantage of the traffic growth we expect in the years ahead and to ensure we have the motive-power assets to improve the supply chains of our customers and enhance their competitiveness in domestic and global markets,” said Creel.