Indiana Harbor Belt Railroad Co. (IHB) recently signed a three-year, $18 million contract with GE Transportation Systems under which the supplier will reduce the 469-mile short line's locomotive fleet from 57 units to 38 by remanufacturing and upgrading power units.
"This expenditure — the largest made by IHB in over 100 years of rail service — shows our commitment to safety," said IHB General Manager Gary Gibson in a prepared statement, adding that the contract will enable the short line to cut expenses and improve its operating ratio.
During 2003, IHB plans to eliminate the majority of its older, underutilized fleet of General Motors Corp. Electro-Motive Division GP40-2s in favor of more productive, 3,000-horsepower locomotives.
The railroad expects delivery of the first units this month. In 2004, GE would remanufacture and upgrade IHB's fleet of EMD SW1500 switcher locomotives. Then, IHB would replace all remaining locomotives with remanufactured and overhauled EMD GP38-2s featuring larger fuel tanks and microprocessor controls. GE plans to service and upgrade IHB's locomotives in San Luis Potosi, Mexico.
Source: The February 2003 issue of Progressive Railroading
