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Union Pacific Railroad recently reached a short-term lease agreement with CIT Rail Resources for 10 new U.S. Environmental Protection Agency Tier 1 GP20D road-switcher locomotives supplied by General Motors Corp.'s Electro-Motive Division. Terms weren't disclosed.

UP previously conducted several field tests on the 2,000-horsepower GP20Ds, which were assembled by MotivePower Industries Inc. and equipped with EMD's 170 Series engines manufactured by Caterpillar Inc. The Class I plans to operate the switchers in the Houston area.

"[We're] anticipating the realization of operating, environmental and financial benefits related to these 10 new road-switcher locomotives," said UP Chief Mechanical Officer Barry Kanuch in a prepared statement.

The agreement represents the railroad industry's first-ever lease transaction involving the fuel-efficient, environmentally friendly switchers, CIT Rail Resources officials believe.

"For too long, railroads have been seeking to address their switcher needs by cascading high-horsepower locomotives or attempting to overhaul outdated road-switchers — this is neither an efficient nor economic solution," said CIT Rail Resources President Steve McClure. "Leasing these 10 new GP20Ds will provide Union Pacific with a significant decrease in emissions and added cost benefits."