Railpower books big contract on new product
Vancouver-based Railpower Technologies Corp. announced today it has sold 98 of its hybrid road switcher locomotives to Union Pacific Railroad in Texas. The U.S. railway operator is putting $81 million (U.S.) it received from government emission reduction incentives towards the contract.
Up until now Railpower has focused on its yard switchers, which are used to move around other rail cars within a rail yard. Road switchers are used for delivering or picking up rail cars outside of of rail yards, so they need to be able to travel greater distances at higher speeds. They also need to have the ability to operate in both directions.
The introduction of its hybrid road switcher opens up a whole new market for Railpower.
“This order marks a major step forward for Railpower and our technology,” said company president and chief executive Jim Maier in a press release. “It puts our order book at approximately 175, fills our production schedule through 2006 and part way into 2007, and gets our new road switcher product off to an excellent start in what we believe will be a key railroad market for Railpower.”
He said the new road switchers will provide 20 to 40 per cent fuel savings compared to conventional road switchers, with an 80 per cent reduction in nitrogen oxides and other particulates.
“As these locomotives have the ability to perform both yard and branchline operations, we believe that our road switchers will become our key product for the major railroads with our yard locomotives primarily being focused on industrial and specialty applications and railroad yard operations in sensitive areas or where there is high fuel usage,” said Maier.
As I’ve mentioned in previous posts, Railpower is evolving its original Green Goat product for other applications even beyong the rail market, including marine applications and eventually shipping cranes.
Investors appeared happy with the announcement. Railpower’s shares shot up 10 per cent today.
Tyler Hamilton is editor-in-chief of Corporate Knights magazine and a business columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the clean technology and green energy market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper.
