CSX has signed a $670 million deal with Wabtec to upgrade its locomotive fleet with 100 new locomotives and 50 modernized units, as well as related digital systems.
The deal calls for new Evolution Series locomotives as well as DC-to-AC upgrades for Dash-9 locomotives. It is the latest in a flurry of activity for the manufacturer that has seen Union Pacific (NYSE: UNP), CPKC (NYSE: CP), and Norfolk Southern (NYSE: NSC) all invest in new or rebuilt locomotives this year.
“Our locomotive fleet is a fundamental element of our safe and reliable railroad,” CSX (NASDAQ: CSX) Chief Operating Officer Mike Cory said in a release. “Modernizing these critical assets strengthens network performance and supports the level of service our customers depend on.”
Wabtec (NYSE: WAB) said the new locomotives are designed to reduce fuel consumption while maintaining performance. The rebuilds will extend service life, improve fleet standardization, and accommodate advanced control and diagnostic technologies, leading to improvements in fuel efficiency, tractive effort, and reliability.
All the locomotives will feature Trip Optimizer with Smart Horsepower per Ton, a cruise-control-like system certified by the Environmental Protection Agency and intended to support fuel efficiency.
“CSX’s fleet modernization initiative underscores its strong commitment to enhancing operational efficiency and delivering reliable customer service,” said Rogerio Mendonca, Wabtec president, freight equipment. “Our unique partnership supports CSX’s strategic approach to long-term fleet planning. By combining new and modernized locomotives with our industry-proven digital solutions, we expect to continue supporting improvements in fuel performance, operational efficiency, and reliability across CSX’s rail operations.”
The first of the new locomotives are expected to be delivered this year, while the first modernized units will be delivered in 2027.
Wabtec has already landed orders this year for 70 new ET44AC locomotives from CPKC, and 40 ES44AC units from Norfolk Southern. The Fort Worth-based company also signed a $1.2 billion contract with Union Pacific to modernize existing units.
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