GE Transportation's Modernization Program Hits New Milestones
FORT WORTH, TX, March 20, 2018 — GE Transportation (NYSE: GE) secures 225 orders in 2018 for locomotive modernizations, as well as completes the first of 100 modernizations for Norfolk Southern (NYSE: NSC). With the increased demand, GE’s 1-million-square-foot facility in Fort Worth is now the world’s largest locomotive modernization facility.
The modernization program updates aging locomotives — some more than 20-years-old — with customized solutions that range from simple changes, including control system upgrades, to complex restorations, such as the comprehensive transformation of an aged DC locomotive into an AC locomotive outfitted with state-of-the-art digital technology.
“This rebuild program with GE aligns with Norfolk Southern’s strategic values for responsible stewardship of resources,” said Doug Corbin, assistant vice president -mechanical at Norfolk Southern. “The rebuild program will modernize and improve our locomotive fleet, adding service life, increasing freight hauling capacity and enabling us to reduce capital spending requirements for new locomotives by efficiently refreshing our existing assets. Modernizations will most likely be a strong portion of our locomotive capital spending for a number of years.”
GE increases asset value of locomotives over their lifecycle and optimizes future growth opportunities for customers. Modernizations also extend the service life of locomotives by approximately 20 years. Already, GE Transportation customers have experienced substantial outcomes from the program, including up to 10 percent fuel efficiency gains, 40 percent increase in reliability and 50 percent increase in haulage ability.
Canadian Pacific (NYSE: CP), looking to take advantage of such optimization, had 30 modernized locomotives delivered in 2017 and an additional 80 are on order to be delivered in 2018.
“We’ve seen our modernization program grow 20 times since 2015,” said Pascal Schweitzer, vice president, services of GE Transportation. “Over the last decade, GE has transformed more than 2,000 locomotives for customers worldwide, including for the majority of the Class 1 Railroads in North America as well as international customers. The outcomes these modernizations offer to our customers creates the ability to realize significantly more value out of existing locomotive assets, which has been game-changing.”
About GE Transportation
At GE Transportation, we move the world and improve the world. We are a global technology leader and supplier of equipment, services and solutions to the rail, mining, marine, stationary power and drilling industries. Our innovations help customers deliver goods and services with greater speed and savings using our advanced manufacturing techniques and connected machines. Our digital solutions provide data-driven insights to improve efficiency. Established more than a century ago, GE Transportation is a division of the General Electric Company that began as a pioneer in passenger and freight locomotives. That innovative spirit still drives GE Transportation today and is strengthened by our ability to serve customers more holistically. GE Transportation is headquartered in Chicago, IL, and employs approximately 9,000 employees worldwide.
About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 19,500 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.
About Canadian Pacific
Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts, providing North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of CP.
