Kansas City Southern recently exercised an option to purchase 74 locomotives at fair market value from Southern Capital Corp. L.L.C. The railroad expects to complete the transaction and obtain the locomotives — which it now leases — May 1.
The fleet comprises 21 SD40-3s, 10 GP38-2s, 28 GP40-3s, five MP1500s and 10 SW1500s.
Purchasing the power units will save the Class I about $1.8 million annually, according to a prepared statement.
Rolling-stock leasing company Southern Capital Corp. is jointly owned by KCS and GATX Capital Corp.
Source: Progressive Railroading Daily News
