As most of you are probably aware CP leased 60 GE AC locomotives to BNSF a couple of months ago when they were flush with locomotives and traffic had dropped a bit due to a couple of contracts being lost. Flash forward to today and CP is now seriously power short(as is BNSF) so they are trying to get unserviceable GE's repaired, all the SD60/60Ms are back in service, they are looking at putting any SD90MACs back into service that just require inspections(they have been stored long enough to all require annual inspections) or minimal repairs, four have been pulled from the Winnipeg deadline. And reportedly they are talking to UP about leasing some power from them.
TRAINS Newswire has a story today (Nov. 6) that CP has put the SD60/60M's back in service.
Life on the Power Desk is always a juggling act. You have a number of Rent-A-Wreck SD40-2's that have reached the end of their lease terms and are being sent back. You have a surprising number of GE AC units tied up unserviceable. And you have units that were rebuilt and paid for mostly by the previous management regime. So, to keep expenses down and the Operating Ratio low, you don't spend money on the AC units and you bring rebuilt units back into service that were paid for in previous fiscal quarters.
However, like all locomotives, eventually these SD60's are going to break down and then the question becomes, do you fix the AC units or the SD60's? Choices, choices. I just hope business gets so good they need all the units.
Bruce
So shovel the coal, let this rattler roll.
"A Train is a Place Going Somewhere" CP Rail Public Timetable
"O. S. Irricana"
. . . __ . ______
f45gnbnIn talking with cp personnel at our shop they said hunter tried to stop these builds when he came on but couldn't and that he doesn't want them.
I've always wondered if that was going to happen. The order was placed when things were already starting to look bleak for Fred Green. I'm not surprised this decision has generated friction in the management ranks.
I wouldn't be suprised if they sell the gp20's and sd30 eco builds. In talking with cp personell at our shop they said hunter tried to stop these builds when he came on but couldn't and that he doesn't want them. You know high paid ceo's know much more than us common folk or so they believe.
They have hundreds of EMD's for the local and medium type road services all the way from 1950's era 567 equipped Geeps to essentially brand new 710 equipped 4 and 6 axle units coming online now. So I can't say as I see the logic in it. Particularly after investing millions in rebuilding most of them. If they were meant for heavy haul services where GE's predominate for them, I could understand not initiating this program in the first place and eliminating them when they came due for mid-life overhauls and upgrades. But they weren't being eyed for things like 70mph double stack trains and such but for services where their EMD's dominate.
Too bad it isn't practical it would seem to rebuild the 710 engined SD90MAC's. Seems a shame to see so many late model SD's with excellent engines likely going to scrap soon due to inferior electrical systems. But beyond 10 or so H engined examples for Australia a while back, half of which were rebuilt in-kind and kept their H engines and electrical systems and the other half which were repowered with 710's and supposedly received upgraded electrical systems in the process, nothing much has happened on that front.
These convertibles look set to become almost as rare as an H engined SD90MAC soon since I doubt many of the UP and CP locomotives will find new homes unless a rebuilder like NRE takes a huge risk and manages to develop an economical and effective retrofit package that cures their ailments. And if that was very practical I imagine something on that front would've happened already like has taken place with its GE counterpart.
A good source is canadianrailwayobservations.com.
I can see the logic of this, 42 locomotives in CP's fleet isn't many, considering just how many GE ACs they have. With the 58 SD9043MACS for sale, CP has 100 late-model EMDs for sale!
It's sad to see the locomotives go, but under the Hunters control, it was inevitable.
Here's a lineup of what's to be gone from the Candy Apple Red (taken in Davenport, Iowa)
Here is something to think about you have 42 engines that are Orphans in the fleet when it comes to Parts. Compare that to all the GE's and 645's in the fleet which would be easier to keep a common parts chain going for a 645 or 710. Not including the ECO rebuilds that are under warranty.
I imagine this is a very recent development. I doubt they've been continuing this rebuild program at least until very recently (anyone know if it's officially still underway?) with the knowledge that the entire fleet was going to be eliminated.
As their tender says, they're open for leases. So if they do continue their rebuild program, maybe they think the most likely result here is for them to be leased so the financials perhaps justify continuing onward with this program in order to make them more attractive as leasers. If they expect to sell them though, I can't imagine them continuing to rebuild. Plus the tender says they're being sold as-is which suggests they're done rebuilding.
If they are sold and they continue rebuilding them until then, I imagine it's because of their contract with CAD. If they suspect they'd gain more from selling rebuilt units than perhaps paying a cancellation penalty to CAD in order to curtail the program prematurely, that's one reason why might continue.
Hard to imagine a return to the bad old days of fresh paint being the sure sign that the days were numbered for something as the best way to go for CPR in the long-term.
Once again going over the roster, it appears to be all the SD60s/SD60Ms are for sale.
CN seems like a good bet, but they haven't jumped on the SD75Ms/SD75Is that were stored when the Bank of America equipment trust expired...
Reading the responses over there, it seems like the idea is that HH came in and ordered them to sell "unneeded" locomotives. And that refurbishing them would raise the selling price more than the cost.
I have two questions.
A- does refurbishment increase the selling price more than the cost?
B-Has the program been canceled?
The Diesel Shop (http://www.thedieselshop.us/CP.HTML) indicates that CP has some leased power- adding another wrinkle to the story.
I first heard about CP wanting to get rid of their recently refurbished SD60s over at trainorders.
Here's an excerpt of that post
.............................................................................................................................................................................
Posted by Leo_Ames
on 06-30-2013 9:01 PM
I am trying to understand why CP would overhaul these just to put them up for sale... Item: SD60 Fleet – Expressions of InterestDetail: CPR is seeking expressions of interest for all or part of Forty Two (42) Locomotives EMD type SD60/SD60M (Built 1989). We are open to sale, lease or lease with buyout option.The SD60 Fleet has been in Road service, they have 4500 GAL Fuel Capacity, 3800HP and weigh 390-410,000LBSFleet Information: • Thirty Three (33) locomotives are Tier “0+” o Nine (9) overhauled in 2013o Eighteen (18) overhauled in 2012o Six (6) overhauled in 2011• Nine (9) locomotives are Tier “0”, overhauled between 2002 and 2009.Unit Numbers: CP6240 CP6245 CP6257 CP6238 SOO6022 SOO6027 CP6250 CP6254 CP6223 CP6249 SOO6051 SOO6033 CP6241 CP6243 CP6221 CP6231 SOO6032 SOO6035 CP6225 CP6229 CP6236 CP6258 CP6248 SOO6037 CP6260 CP6255 CP6230 CP6259 SOO6047 SOO6044 CP6228 CP6234 CP6246 CP6239 SOO6024 SOO6053 CP6242 CP6252 CP6256 CP6262 SOO6026 SOO6061Locomotives are dispersed across the CP network, with the main locations being Montreal (14 loco’s), Toronto (7 loco’s), Alyth (7 loco’s) and Winnipeg (9 loco’s).
Thank you Leo, hadn't thought of the ECOs.
Lyon_Wonder, do you have a source?
They're in the midst of acquiring many new 710 equipped units so even if these disappear, EMD's 710 engine has a long future there thanks to the GP20C-ECO. And plans seem to have been curtailed significantly at least for now, but they're also investing in SD30C-ECO's as well. So I doubt it has anything to do with simplifying parts inventories.
It doesn't make much sense that they're dumping these. They've been having CAD overhaul, upgrade (Including Tier 0+ compliance, AESS, and PTC), and repainting units for several years now with much of their roster of SD60's already finished. And several have just been outshopped there in recent weeks and at least one unit arrived just a few weeks ago there for rebuilding.
It's true though since it's there under their list of tenders at CPR's website so it's more than just a rumor (Unlike the recent questionable scrap rumor concerning the group of former Soo SD60's that CPR let go at the end of their lease several years ago that seems to have originated from a single photographer).
I wonder if Canadian National will pick up some or all of these units. They've picked up 90 used SD60's already and haven't been shy at picking up good deals on used late model GE's or EMD's.
Is this that they are trying to sell of all 710 engine EMDs, for less parts needed? Seems like something HH would do.
CP is purging it's entire fleet of SD60 and SD60Ms. This also includes SD60s that were thoroughly refurbished and repainted into new CP paint just one and two years ago. I was quite surprised considering the effort CP put into refurbishing their SD60s.
But them again, CP's now under new management with Hunter Harrison as CEO.
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