KANSAS CITY, Mo. and CHICAGO, June 21, 2018 –Kansas City Southern (KCS) (NYSE: KSU) announced its U.S. and Mexico rail subsidiaries will acquire a combined total of 50 new locomotives from GE Transportation (NYSE: GE) to be delivered during 2019, as well as digital solutions to drive improved operational and fuel efficiency. With the North American rail market improving and freight volume up roughly 5% in 2017 and expected continued growth in 2018, the advanced locomotives will help KCS deliver on its expected future growth, while driving operational efficiencies across the KCS network.
“KCS is pleased to have GE as our partner,” said KCS executive vice president and chief operating officer Jeffrey M. Songer. “This purchase will help us continue the modernization of our locomotive fleet and position KCS for future expanded volumes.”
The order includes GE’s Tier 4 Evolution™ Series locomotives, equipped with GE Transportation's GoLINC™ Platform, Trip Optimizer™ System and Distributed Power LOCOTROL® technologies. As part of GE Transportation’s Train Performance product suite, these technology solutions optimize power distribution, train handling, brake control and fuel utilization.
“This agreement will expand our relationship with KCS, drive operational efficiency across their system, and further meet the needs of their future growth,” said Rafael Santana, president and CEO of GE Transportation. “Our leading Tier 4 locomotives will give KCS the productivity and reliability needed to move and grow with its customers.”
The locomotives will be produced at the GE Manufacturing Solutions facility in Fort Worth, Texas beginning in 2018. The first units are expected to be delivered in early 2019.
About Kansas City Southern
KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS’ North American rail holdings and strategic alliances are primary components of a railway network linking the commercial and industrial centers of the U.S., Mexico and Canada.
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 digital 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. GE Transportation is headquartered in Chicago, IL, and employs approximately 9,000 employees worldwide.