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Indiana Harbor Belt Railroad Co. (IHB) recently signed a three-year $18 million contract with GE Transportation Systems (GETS) under which the supplier will reduce the 469-mile short line's locomotive fleet from 57 units to 38 by modernizing the railroad's power.
Structured in three phases, the deal is designed to minimize effects on IHB's day-to-day operations while GETS upgrades and remanufactures locomotives.
"This expenditure decision — the largest made by IHB in over a 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 railroad to reduce expenses, improve its operating ratio and meet customers' performance commitments.
The first phase's two-for-one unit replacement plan involves remanufactured and upgraded General Motors Corp. Electro-Motive Division GP40-2s. During 2003, IHB plans to eliminate the majority of its older under-utilized fleet of GP40-2s in favor of more productive, 3,000-horsepower locomotives. The railroad expects delivery of the first units under Phase 1 in February.
In 2004, GETS would remanufacture and upgrade IHB's fleet of EMD SW1500 locomotives for switching-service assignments.
Then, under Phase 3, IHB plans to replace all remaining locomotives with remanufactured and overhauled EMD GP38-2s. The 2,000-horsepower units will feature upgraded systems, such as larger fuel tanks and microprocessor controls.
GETS plans to service and upgrade IHB's locomotives at its San Luis Potosi, Mexico, facility.