Ferromex and Ferrosur Purchase 34 EMD SD70ACes, Expanding the Companies’ Locomotive Fleets

September 24, 2014 -- LaGrange, Illinois, and Mexico City, Mexico— Ferrocarril Mexicano, S.A. de C.V. (Ferromex) has announced the purchase of 19 additional Electro-Motive Diesel (EMD) SD70ACe locomotives, adding to its fleet for a total of 116 EMD SD70ACe locomotives. Ferrosur has also announced its first order of EMD locomotives in the company’s history, with the purchase of 15 SD70ACe locomotives that will feature a special design for tunnel operations enhancements. These orders result in a combined 131 SD70ACes for the Grupo Mexico companies, with the latest locomotives placed into service in Mexico City, Mexico by June 2015.

The railroads selected EMD to supply their new locomotives based on the demonstrated performance and leading fuel efficiency of the SD70ACe. Both of the new contracts include an 11-year locomotive maintenance agreement. Ferromex took delivery of 82 new SD70ACe locomotives in 2011 under two separate orders and 15 locomotives in 2006.

“The 97 SD70ACe locomotives we have received have achieved very high and consistent performance and fuel efficiency. The 34 new additions will be key to our plans for 2015 and beyond, where Ferromex will continue to grow at higher levels than the average of the North American railroad industry,” said Rogelio Vélez, CEO of Ferromex/Ferrosur. “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 1 railroads in the United States and Canada.”

“Since the railroad industry was 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 their operations,” said Billy Ainsworth, President and Chief Executive Officer of Progress Rail and EMD. “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.”

EMD introduced the 4,300 traction horsepower SD70ACe locomotive in 2005 for freight applications in North America and worldwide. These locomotives also feature radial trucks, distributed power and the EMD Q-cab for increased operator comfort and safety.

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About Ferromex

Ferromex, formed by Grupo Mexico and Union Pacific, began operating in February of 1998. The company has invested close to $4 billion in locomotives, infrastructure, freight cars, technology and intermodal and automotive terminals over the last 13 years. With more than 8,000 kilometers of track, Ferromex represents the largest coverage in the Mexican Railway System. It connects the main cities in the country as well as five points on the border with the United States, four sea ports on the Pacific Ocean and two more on the Gulf of Mexico. Additional information may be found at www.ferromex.com.mx.

About Ferrosur

Ferrosur serves the southeast of Mexico with close to 2,000 kilometers of track, serving the two most important ports in the Gulf of Mexico, Veracruz and Coatzacoalcos and connecting with Ferromex network in Mexico City. It was acquired by Grupo Mexico in 2005 and has made capital investments of around $800 million since it was privatized in 1998.

About Progress Rail Services Corporation and Electro-Motive Diesel, Inc.:

Progress Rail Services Corporation (Progress Rail), a wholly owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. More than 8,000 employees serve customers in a network of more than 165 locations across the United States, Canada, Mexico, Brazil, Italy, Germany and the United Kingdom. Progress Rail is headquartered in Albertville, Ala.

Through the acquisition of Electro-Motive Diesel, Inc. (EMD), Progress Rail has expanded its network of global locations, furthering a commitment to providing industry-leading products and services. Founded in 1922, Electro-Motive Diesel is an original equipment manufacturer of diesel-electric locomotives. EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and is a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs and stationary power generation. The company is the only diesel-electric locomotive manufacturer to have produced more than 72,500 engines and has the largest installed base in both North America and worldwide. EMD also has an extensive aftermarket business offering replacement parts, maintenance solutions and a range of value-added services. 

For more information, visit www.progressrail.com.

Progress Rail Media Contact:

Barbara Jansen
Office: 256.505.5054
bjansen@progressrail.com 

Ferromex/Ferrosur Media Contact:

Leonor Torres

(5255) 5246 3882