| [an error occurred while processing this directive] |
[an error occurred while processing this directive]
[an error occurred while processing this directive]
|
Web posted
"This is a substantial investment for a small railroad like us," he said. Over the next five years, 17 of the railroad's locomotives will reach the end of their productive lives. For a locomotive, that means two million rail miles or 30 years. Because of new federal diesel emission standards, this is the last call to get the SD70 MAC, said Gamble. The manufacturer, General Motors Electro-Motive Division, is shutting down the assembly line for this particular model. However, a replacement model has not been designed yet. Gamble said it could take 8 to 10 years of research and development before a new locomotive is in production and even then, the railroad does not want to be the first to try out the new equipment. With 17 locomotives on the way out, the corporation cannot wait. "If we can handle this attrition in the next five years, we will be about 10 years ahead," Gamble said. On
"We don't want to be a second-hand rebuilt railroad," he said. One of the downsides to purchasing the new locomotives is that it puts the corporation in debt. At nearly $2.5 million apiece, the total price tag for the acquisition is nearly $19 million. The railroad will pay about one-third of the total cost in cash from net earnings and will cover the other two-thirds by taking out a loan, Gamble said. All of the other locomotives owned by the railroad are paid for. Another downside is that the purchase cuts into the capital improvement budget for 2004. Some of the projects that were to be completed next year will be put off until the following yea, Gamble said. However, when weighing the disadvantages against the advantages, the scale tipped in favor of the purchase. One of the biggest benefits is that the eight new locomotives will replace the 17 that are wearing out, plus seven locomotives that the railroad has leased this year. Essentially, eight new locomotives will be able to do the work of 24. Part of that is due to a higher horsepower and part is due to a higher availability rate -- meaning the amount of time they are available to pull trains, compared to the time they are in the shop. The new model will have a 95 percent availability rate whereas the older models have about an 83 percent rate. Another upside is it will standardize maintenance on the trains. The railroad took delivery on 16 new 4,000 hp SD70 MACs in 2000. Keeping with the same model of locomotives will streamline maintenance. Factoring in reliability, availability and maintainability, it just made sense to make the purchase now, said Gamble. The new locomotives are also expected to be more fuel-efficient than the older GP locomotives. The fuel efficiency is at its peak on long distances, making the new locomotives ideal for the long hauls to Fairbanks. The new locomotives are needed to keep up with the current workload of the railroad and are not being purchased in anticipation of growth. "When growth happens, we are going to have to address it," Gamble said. "This does not address growth, it addresses attrition." The SD70 will help modernize the railroad. It comes equipped with a computer system needed for a collision-prevention warning system. Another modernized feature is that speed can be programmed into the SD70, where older locomotives have manual speed control. The railroad has ordered the locomotives with a few special features, including an environmental pack option for the cold climate and an 800-kilowatt generator option to power the passenger cars. General Motors EMD's headquarters, engineering facilities and parts-manufacturing operations are located in LaGrange, Ill., just west of Chicago. Final assembly is conducted at GM EMD's state-of-the-art plant at London, Ontario. From there the locomotives will be sent to the West Coast, where they will be sent by barge to Whittier. The corporation will take delivery of the SD70s in late 2004.
|
