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During the next four months, Kansas City Southern expects to take delivery of 25 SD50 locomotives from National Railway Equipment Co. Earlier this year, the Class I purchased the units — formerly used by Conrail — from the lessor.

The 25 locomotives will increase KCS' fleet to 525 and reduce per-horsepower-hour costs, according to a prepared statement.

Last month, the railroad enhanced its locomotive fleet by exercising an option to purchase 74 units from Southern Capital Corp. L.L.C., a rolling-stock leasing company jointly owned by KCS and GATX Capital Corp. The Class I expects to obtain the locomotives — which it now leases — May 1.

KCS expects to save about $1.8 million annually by purchasing the units.