CN orders 40 new high-horsepower EMD locomotives, secures option for 50 more units

New diesel-electric locomotives will improve fleet efficiency, reduce fuel consumption and emissions

MONTREAL, Dec. 19, 2008 — CN (TSX: CNR)(NYSE: CNI) announced today it has ordered 40 additional high-horsepower locomotives from Electro-Motive Diesel, Inc. (EMD) and secured an option for 50 more of the EMD locomotives. 

CN will acquire 40 EMD SD70M-2 locomotives in early 2010, with an option for 50 more of the 4,300 horsepower locomotives by 2011. 

CN currently has 75 SD70M-2s in service, and 25 additional units, previously ordered in 2007, will join CN's locomotive roster during the first quarter of 2009.

E. Hunter Harrison, president and chief executive officer, said: “The new EMD locomotives are a sound investment. They will help CN to improve the efficiency and reliability of its motive power and enhance customer service, and will also allow us to reduce fuel consumption and exhaust emissions. Rail is the green mode of transportation, and our new locomotives will further enhance our environmental performance.”

The new EMD locomotives will be up to 20 per cent more fuel efficient than the ones they replace and will comply fully with the latest regulatory requirements for reduced locomotive emissions.

All of the new locomotives will have improved crew cabs that will also be isolated from the frame to reduce noise and vibration for train personnel.

In addition, the units will be equipped with distributed power (DP) capability. DP enables remote control of a locomotive or locomotives throughout a train from the lead control locomotive.

DP provides faster, smoother starting, improved braking and lower pulling forces at the head-end of a train. In addition, it significantly reduces the time required to charge a train's air brake system, a major benefit in cold weather conditions that slow charging rates. All of this results in more productive use of assets and manpower, better customer service and safer and more efficient train operations. Today CN has more than 200 locomotives equipped with DP technology.
 
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