Norfolk Southern plans to modernize several dozen locomotives

Norfolk Southern Advances Locomotive Fleet Modernization

Norfolk Southern has announced plans to speed up the overhaul of its locomotive fleet by collaborating with Progress Rail to convert 96 locomotives from direct current (DC) to alternating current (AC) power.

The Atlanta-headquartered railroad (NYSE: NSC) revealed that the upgraded SD70ICC Tier 2+ AC locomotives will start arriving in 2027, with the full batch expected by 2029.

AC-powered locomotives offer greater traction at low speeds and can operate for extended periods without the risk of overheating or wheel slip, making them ideal for hauling today’s massive, heavy trains. This is especially beneficial for Class 1 railroads, such as those running long-distance routes in the West. Union Pacific (NYSE: UNP), which is in the process of acquiring Norfolk Southern as part of a proposed transcontinental merger, also operates such routes.

Currently, nearly 90% of Norfolk Southern’s locomotives are already equipped with AC traction.

The modernization project involves upgrading Electro-Motive Division-built SD70M-2 DC locomotives, with Progress Rail—a Caterpillar (NYSE: CAT) subsidiary—leading the work. Enhancements include individual axle control for improved traction, Caterpillar’s Advanced Diesel Engine Management for better performance, and remanufactured 16-cylinder EMD 710 engines delivering 4,300 horsepower. (The engine model numbers from the former General Motors (NYSE: GM) indicate the cubic inch displacement per cylinder.)

Norfolk Southern stated that these upgrades will allow the company to use fewer locomotives per train, boost reliability by 40%, and increase hauling capacity by 55%. Additionally, the revamped engines are 3% more fuel efficient.

Each locomotive conversion is expected to extend its service life by at least two decades, offering significant cost savings compared to purchasing new units.

Earlier this year, Norfolk Southern ordered 40 new 1,600-horsepower ES44AC locomotives from Wabtec (NYSE: WAB), marking its first new locomotive order since 2022. The company also plans to streamline its fleet, reducing the number of engine models from 13 to just four over the next ten years.

“These conversions are a clear demonstration of our commitment to modernizing our fleet for safer, more reliable, and efficient operations well into the future,” said Brian Barr, Norfolk Southern’s vice president of mechanical and chief mechanical officer. “By transitioning to AC traction, we’re enhancing the resilience of our network, improving fuel economy, and extending the lifespan of our locomotives—while providing customers with greater hauling capacity and dependable service to help them achieve their own growth and sustainability objectives.”