2018ff CN locomotive order

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Allen Hazen
Posts: 2490
Joined: Fri Mar 12, 2004 10:14 pm
Location: Edmonton, Canada (formerly Melbourne, Australia)

2018ff CN locomotive order

Post by Allen Hazen »

Today's (23.xii.2017) Toronto "Globe and Mail," Business section pay B8, has a story titled "CN to buy 200 locomotives from GE." Deliveries to begin in 2018, continuing into 2019 and 2020; to be built in Ft. Worth. This comes on top of an order or 22 units earlier this year: CN has been booming ("sales and carloads rose by 11% in the first nine months of 2017, led by a 28% rise in metals and minerals and a 15% jump in containers"(see below for more details); CN has also recently said that "it will his about 5,500 people by next year to meet the new demand"), and is reactivating about 100 stored locomotives.
Exact model wasn't announced, but we can all guess: "CN declined to say how much it is spending on the locomotives, but an industry source said they cost about $3-million (US) each. The 195-tonne locomotives produce 4,500 horsepower, and can pull a freight train train at 110 kilometres an hour, GE says."
A CN person said "In the years ahed, these GE locomotives and their digital technology will support and enhance our operational efficiency," and Rafael Santana, the head of GETS, said "CN's steadfast commitment to serving its customers… is helping to turn around the North American locomotive market."

As for what thy may look like… the article is illustrated by a file photo of a CN locomotive… built by EMD.

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F.w.i.w.: "CN says its frac sand business has posted a year-to-date increase of more than 100%, while coal has risen by 41% [and] autos are up by 18%."

es80ac
Posts: 53
Joined: Sun Feb 26, 2012 6:07 pm

Re: 2018ff CN locomotive order

Post by es80ac »

Would love to have GE change their mind about selling GETS because of this order.

Allen Hazen
Posts: 2490
Joined: Fri Mar 12, 2004 10:14 pm
Location: Edmonton, Canada (formerly Melbourne, Australia)

Re: 2018ff CN locomotive order

Post by Allen Hazen »

Es80ac--
I'd love it too. The decision to put GETS on the block was shocking in several ways. The locomotive business is closely related to other "core" GE businesses producing industrial equipment. (E.g.: historically, turbochargers for diesel engines were, for GE, an offshoot of their work on turbochargers for aircraft engines, which led them into being a major player in the turbojet engine business.) And in recent years GE seemed to be developing the high-tech aspects of the locomotive business in ways similar to the ways it has developed other businesses. (E.g.: GE has recently boasted of making it possible for its aero-engines to "call home" with continuous updates on their condition, making it possible to schedule preventive maintenance effectively. But similar programs have been put into effete in the locomotive area for several years.) So GETS seems like a good "fit" for GE. The only thing, so far as I know, making GETS an obvious candidate for divestiture was that its business had been weak for a couple of years, and given the cyclical nature of the locomotive business, it seemed short-sighted to make a decision on that basis. So… I think it would be reasonable for GE's top brass to look at this order and think "Hmmm… GETS may have good longer-term prospects. Let's sell it only if we get a REALLY good offer."

Or, to quote Shakespeare (Rich. III, Act I, Sc. 2):
Richard: But shall I live in hope?
Anne: All men, I hope, live so.

JayBee
Posts: 374
Joined: Thu Oct 27, 2011 11:28 pm

Re: 2018ff CN locomotive order

Post by JayBee »

es80ac wrote:Would love to have GE change their mind about selling GETS because of this order.
The problem is that it is the only sizable order for new locomotives in the US for next year.

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