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Today, GE Transportation announced it obtained an order for 78 diesel-electric locomotives from China's Ministry of Railways — GE's first Chinese order since 1985. The ministry currently operates 400 locomotives produced by GE, which operates a locomotive parts business in China.

GE plans to build the 4,000-horsepower, AC-traction units — which will feature 16-cylinder engines — in Erie, Pa.

"Our experience in a number of challenging climates pulling freight long distances will ensure a successful launch in China in 2006," said Luke Clemente, president of GE Transportation-Rail, China, in a prepared statement.

The ministry also plans to implement GE's Incremental Train Control System (ITCS) to maximize track capacity and minimize wayside equipment. Designed as a standalone signaling system for freight and passenger trains, the system uses satellite positioning technology and radio communications to transmit signaling and crossing information to a train's onboard computer. The ministry plans to use ITSC to separate trains and enable engineers to adjust speed according to track conditions, maintenance and speed restrictions.

During the past five years, GE has implemented ITCS on North American freight and passenger railroads. The company is testing a system on Amtrak's Chicago-to-Detroit corridor designed to increase maximum speed from 90 mph to 110 mph.