Ferrocarril Mexicano, S.A. de C.V. (Ferromex) and Ferrocarril del Sureste S.A. de C.V. (Ferrosur), which are owned by Grupo México (Union Pacific has a 26% stake), are acquiring 34 Electro-Motive Diesel (EMD) SD70ACe locomotives.
Ferromex’s purchase of 19 units will bring its total of SD70ACes to 116. Ferrosur’s purchase of 15 units is its very first order of EMD locomotives; its SD70ACe locomotives will be specially outfitted and enhanced for tunnel operations. Both orders result in a combined 131 SD70ACes for Grupo México’s railroads, with the newest locomotives to be placed into service in Mexico City by June 2015.
Both of the new contracts include an 11-year locomotive maintenance agreement.
“The 97 SD70ACe locomotives Ferromex has acquired thus far have achieved very high and consistent performance and fuel efficiency,” said Ferromex/Ferrosur CEO Rogelio Vélez. “The 34 new additions for Ferromex/Ferrosur will be key to our plans for 2015 and beyond, where we will continue to grow at higher levels than the average of the North American railroad industry. With this important investment, both companies continue to demonstrate their commitment to the growth of the railroad industry in Mexico, operating competitively under the same standards as Class I railroads in the United States and Canada.”
“These railroads selected EMD to supply their new locomotives based on the demonstrated performance and leading fuel efficiency of the SD70ACe,” said Progress Rail/EMD President and CEO Billy Ainsworth. “Since Mexico’s railroads were privatized in 1998, we have been a key part of the aggressive growth and development of Ferromex/Ferrosur. We are thrilled and honored that Ferromex once again selected the SD70ACe locomotive for expansion of its operations. We appreciate the confidence Ferromex and Ferrosur have in EMD and look forward to providing the highest quality, energy-efficient locomotives and services to support their future growth.”