Wednesday, November 5, 2014

Shortage of Locomotives Hampers North American Railways

No shortage of locomotives this
day on the M & M Sub.!

Ever wish you had more locomotives on your layout? Right now, the prototype railways do, too.

According to an article in the Globe and Mail, a shutdown at Electromotive (EMD) for two years is hampering the efforts by railways to move the growing amount of grain, oil and other goods on their tracks.

The reason for the shutdown at EMD is its need to meet stricter U.S. emissions regulations that come into effect in 2015.  This leaves General Electric as the sole manufacturer of locomotives.

The result? GE has seen locomotive demand rise by 134 per cent in the latest quarter. It has received orders for 1,000 of the lower-emission engines, which will start being shipped on Jan. 1, next year.

“There is not a single piece of power you can acquire,” Oscar Munoz, chief operating officer of CSX, is quoted in the article.

CN feels like it is in a good place, with enough units to get it through until EMD is back in production.

The CPR, on the other hand, has no new units on order. A number of units on lease to other railways will soon be returned to that railway.

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