kgbw49 If I recall correctly, the 200 unit GE order is going to be spread over three years for the deliveries.
If I recall correctly, the 200 unit GE order is going to be spread over three years for the deliveries.
That is correct. The first units are to be delivered in Q3 2018.
kgbw49 It will be interesting to see if one of CN's "US railroad" legal entities - Grand Trunk Western, Illinois Central, Wisconsin Central - is the one that actually purchases the units so that they can take advantage of the provision in the Tax Cuts and Jobs Act of 2017 that allows for immediate expensing of capital investments for Federal Tax calculations.
It will be interesting to see if one of CN's "US railroad" legal entities - Grand Trunk Western, Illinois Central, Wisconsin Central - is the one that actually purchases the units so that they can take advantage of the provision in the Tax Cuts and Jobs Act of 2017 that allows for immediate expensing of capital investments for Federal Tax calculations.
That has already been happening for over 15 years, the last batch of Dash-9's were delivered in CN paint but with IC numbers (2698 to 2721 if memory serves). The blue cards of many ES and ET44AC's list the owner as WC, IC or GTW, even though they are all painted and numbered for CN.
No idea what the exact reason for each ownership "change" has been, but it must be something the accountants came up with
Greetings from Alberta
-an Articulate Malcontent
GE is trying to sell its locomotive division. A end of year fire sale to have some orders on the books would sweeten the deal for a potential buyer.
Might the biggest hurdle for new orders be the large numbers of units formerly assigned to coal loads that are now available for other work with the natural gas revolution in the electric industry?
Look at the numbers of Grinstein Green SD70MACs, for instance, that with some investment probably will be good for another 20 years. Or what Norfolk Southern is doing with their DC to AC conversions, the SD70ACu conversions, etc.
Canadian National and Canadian Pacific both went through years of downsizing their fleets under Precision Scheduled Railroading, including putting some "relatively" new (i.e. significant useful life left in them) units on the storage tracks.
Now CSX is going through the same process.
UP has all those units in storage on the former main line in Arizona and at other locations around the system.
There are some very significant surge fleets in storage all across the country.
At the same time, it would not be beneficial in the long run for the railroads to lose one of their suppliers of new motive power, so one has to think that there may be some moderate orders over the next several years to keep them in business.
That would not be a "gift" by the railroads but a defensive position, for the same reason that most of the larger airlines - not all but most - have both Boeing and Airbus units in their fleet inventories.
ATSFGuyWell then in regards to the Metrolink F125, CAT better admit the tier 4 diesel engine needs to be redesigned or they're going to be in a heap of trouble regarding the F125 model.
We had the F125's problems as topic in another thread: http://cs.trains.com/trn/f/741/t/266321.aspx
According to minutes of Metrolink meetings the problems lay in the DEF transport from tank to day tank. It had nothing to do with the C175-20.Regards, Volker
Well then in regards to the Metrolink F125, CAT better admit the tier 4 diesel engine needs to be redesigned or they're going to be in a heap of trouble regarding the F125 model.
Class I's often use big power on locals simply because it is there, and may be the only power available. Gotta sweat those assets. Seeing new high-HP units switching is no cause for concern.
What I find more telling is that Canadian National has been quietly testing two SD70ACe-T4 demonstrators in Western Canada for the past month, and the only thing to come of that is the big 200-unit GE order. Seems CN management is not impressed with the EMDs.
The crews seem to like them though, I haven't been on one yet but everyone who has says they are great to run.
As for the F125's, CAT has been trying to crack the railroad market for 30 years and every one of their attempts has met with failure. Their diesel engines, for whatever reason, just don't do well in the railroad environment.
This forum contributor saw the rather unbelievable on Friday, December 29, 2017. At Mojave, CA, UP 3027 (a new SD70ACe-T4) led a small cement train into town from a branch!
It is understood the new units are mainly operating on the Powder River Basin trains, but some are roving the system. But, a 10 mile branch line? The earlier SD70ACe’s were often regulated to locals for a long time. Now they are system wide.
CAT may have bitten off more than it can chew. The commuter F125 seems to be a nightmare.
So, new CAT power of any type are very limited, and having delays. And, GE seems to want to exit. Is Siemen’s the power of the future?
----------------------------------------------------------------------------------------------------------------------------------- K.P.’s absolute “theorem” from early, early childhood that he has seen over and over and over again: Those that CAUSE a problem in the first place will act the most violently if questioned or exposed.
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